Rents Remain Flat in Q2 - August 2024

Residential Rents Remain Flat in Q2, but Up Year-on-Year by $30 a Week

In the June quarter (Q2) of this year, residential rents remained stable but showed an average increase of $30 per week compared to the same period last year.

Data from Tenancy Services' bond records reveal that the national median rent stood at $600 per week in Q2, unchanged from the first quarter of this year. However, this figure represents a 5.3% rise, or $30 per week, compared to Q2 of the previous year.

This trend was also reflected across different types of rental properties.

For three-bedroom houses, the median rent remained steady at $650 per week between Q1 and Q2 but saw a 4.8% year-on-year increase, up by $30 per week compared to Q2 last year.

Similarly, the median rent for two-bedroom apartments and units was unchanged at $600 per week in Q2 but rose by $25 per week (4.3%) over the previous year.

One-bedroom apartments/units experienced the least variation, increasing by $10 per week (2.2%) in Q2 to reach $460 per week, after remaining stable at $450 per week for the prior four quarters.

Rental activity also remained flat, with Tenancy Services processing 34,788 bonds in Q2, representing a minimal 0.4% decrease compared to the same quarter last year.

Among the 41 main urban districts monitored by Interest.co.nz, 20 saw an increase in median rents between Q1 and Q2, 12 recorded no change, and nine experienced declines. A full breakdown of district-by-district figures is provided in the accompanying table.

In terms of the most expensive places to rent, Auckland's Orakei Ward holds the top spot with a median rent of $780 per week, narrowly edging out Queenstown-Lakes at $775 per week.

On the other end of the spectrum, Timaru and Invercargill tied for the title of the cheapest rental markets, each with a median rent of $450 per week.

Queenstown-Lakes recorded the largest quarterly rent increase, up $75 per week in Q2, while Dunedin posted the biggest decline, with rents dropping by $105 per week in the same period.

Dunedin’s rental decrease was not unexpected, as the city typically sees a sharp rise in median rents in Q1 due to the influx of students, followed by a significant dip in Q2. On an annual basis, Dunedin's median rent still showed a $35 per week increase.

Overall, Auckland rents showed more moderate annual growth, rising by 4.8% over the year. In contrast, rents in the northern part of the South Island, from Nelson to Selwyn, saw double-digit percentage increases over the same period.