Rental prices dropped to an eight-month low in September but still sit higher than when compared to the same month last year, according to new numbers from Trade Me.
According to the website’s Rental Price Index, the median weekly rent in September was $630, down $10 or 1.6% from August — the lowest since January 2024.
However, prices remained 1.6% higher than they were in September 2023.
The biggest rent drops from August to September this year were seen in Marlborough (down $30 to $550 per week), Canterbury (down $25 to $565 per week), and Hawke’s Bay (down $10 to $640 per week).
The biggest increases were in Northland (up $20 to $620 per week), Nelson/Tasman (up $5 to $575 per week), and Southland (up $5 to $475 per week).
Trade Me property customer director Gavin Lloyd said that as summer approached, rental prices tended to go up, but softened demand had created “interesting market dynamics.”
“There tends to be stronger demand for places to rent as the weather warms up and people move around, but unlike in more recent years where supply hasn’t kept pace with demand, this year we are in a different position with supply up 44% year-on-year,” he said.
“There’s a few reasons driving the surplus supply, including record numbers of people, particularly younger people, leaving the country while others are choosing to stay at home longer or live with relatives while unemployment and the cost of living both remain high.”
Both Auckland and Bay of Plenty were tied as the country’s most expensive places to live.
Rents in Auckland fell $5 to $670 from August to September, the lowest they had been in nine months. Bay of Plenty’s average weekly rent also sat at $670.
“We’ve seen prices in Auckland come down for the past three months, whereas those in the Bay of Plenty have shown a lot more stability, recording no change for the past four months,” Lloyd said.
“Coming out on top as the most expensive spot to rent is a race no tenant wants to win but comparing the prices paid in Auckland versus the Bay of Plenty isn’t entirely comparing apples with apples as you could expect to get a lot more house for your money in the bay.”
Otago and Wellington took the second spot at $650 per week, both seeing flat month-on-month growth.
Hawke’s Bay sat in third at $640 per week — a $10 drop from August.
While prices fell, supply also softened — dropping 1% between August and September.
“While we’ve seen the number of listings fall 4.4% since skyrocketing mid-year, listings remain +44% up on the same time last year, meaning there’s still plenty of rental properties available for those seeking a new place to call home,” Lloyd said.
