According to the latest Trade Me Property Rental Price Index data, the national median weekly rent continued its strong performance in February reaching $410 per week.
While this is below the all-time high of $420 per week reached in January, it is up 6.5% from a year ago.
Over the past five years, the median weekly rent has risen by 20.6% from $340 to $410.
The majority of this increase has occurred in the past two years, with rents up by 10.8% from $370 in February 2013.
Head of Trade Me Property Nigel Jeffries said the rental market has been directly affected by the rise in property prices as landlords look to align rents with property values and improve yields.
With strong demand from tenants but tight supply the rental market has now tipped in favour of landlords, he said.
“We’ve seen a noticeable fall in new rental properties coming onto the market since the start of the year - down 12% across the country. That all adds up to an annual increase for renters.”
Properties across all sectors of the market recorded rent increases – including the apartment sector which was underpinned by a year-on-year 6.3% growth in rents in Auckland.
Jeffries said demand pressure was driving this growth as the number of rental listings fell by 26% across the city in the 12 months to February 2014.
“Auckland is beginning to see a stronger flow of new developments onto the market, but in the meantime this shortage of available stock will keep driving rent increases.”
City Sales Property Management director Shelley Dunn agreed. She said that, despite thousands of new apartments under consent and/or construction in Auckland, supply has not been able to keep up with the demands of immigration and the student influx
“This has seen our rents head northwards. And, over the last couple of months, it hasn't been uncommon to have dozens of people turn up to our viewings which have been non-stop.”
Usually the Auckland apartment market acts and behaves very differently from the Auckland residential market as a whole, Dunn added.
“But, for now, apartments are following suit, fuelled by a current lack of supply.”
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