Financial difficulties to rent, and there is worse to come

If you want to rent a property in Wellington this summer, you must be willing to pay 10% more than last year.

Trade Me has released its latest data on rental properties, which indicate that the median rent charged by homeowners in the Wellington area is now $ 495.

In Wellington City, the median weekly rent is only $ 10 less than Auckland, at $ 540.

The median of Auckland was $ 550 for the seventh consecutive month, up 4.8% over last year.

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Nigel Jeffries, head of Trade Me Property, said the rents in Wellington were heating up in December, but this year started early. "Demand in the capital is massive, with 13 Wellington rentals among the top 20 most popular locations in the country in October.This is only a beginning too, the summer is approaching and rents are expected to rise the $ 500 mark for the first time.

"In addition to wholesale prices on demand, tenants looking for a property in Wellington have good news: their listings have increased by 15% .But, of course, the demand is extraordinary and shows no sign of rental.

"Tenants looking for a property are facing fierce competition and this will only intensify as the traditional" summer job "unfolds, as rentals will be reviewed and that university students will go to town. "

Wellington's most popular rental in October was an affordable one-bedroom unit in Petone, which had received 73 inquiries during the first two days.

The economist of infometrics, Gareth Kiernan, said that tenants in the capital could benefit from some relief: the real estate market was generally slowing and this should be reflected in rents before too much. a long time, he said.

Jeffries said rents in Northland (up 10.5% to $ 420) and Waikato (up 6.3% to $ 420) hit new highs in October and moved closer to home prices. 39, Auckland.

The median weekly rent at Whanganui (+ 13.3%, or $ 340) is another region that broke a record in October, while all other regions experienced a year – over – year increase. other.

"The bid is struggling to keep up with demand across the country after a 3% drop in the number of listings of rents per year. Given rising home prices, we think kiwis will have more time to save for a deposit, which many have to stay in rentals longer, "he said.

Jeffries said that the number of inquiries received about Auckland rentals during their first two days on the site had increased by 20% in one year.

The city of Manukau was the most popular rental location in October, with a 38% increase in the number of inquiries during the first two days on the site.

"While rents in Auckland have remained relatively stable over most of 2018, we expect them to warm up during the summer months as the number of high school students come in." and that supply continues to fight to meet the demand.We anticipate that Auckland rents will be close to 600 mark early next year.

Effective December 12, property administrators will no longer be allowed to charge tenants for rent. Agencies are turning to higher commission structures or "rental fees" for homeowners.

But Matthew McMillan, of Pukeko Rental Managers, in Hutt Valley, said that this could eventually leave homeowners feeling better.

The owners put their rents in place to cover the costs, he said.

"Pukeko Rental Managers has never charged rental fees to tenants and we certainly will not do so in the future." Following the ban, we are seeing a sharp increase in the number of tenants. investors who are turning to Pukeko Rental Managers to avoid new fees.Other property managers will charge.

"But the idea that it will result in lower rent increases simply does not hold water.If you have two identical apartments, one managed by the officials of the rental Pukeko and the other run by a company that charges the new fees, it is not reasonable that our customer will set his rent lower than the other type.Mark market forces will apply and the rent higher will be the new reference.

"Savvy investors realize that they can eat their cake and eat it, they can reduce their costs by switching to an effective player like Pukeko Rental Managers – but also benefit from the higher rents caused by the ban." So is great news for the owners, I'm pretty sure it was not the intention of the government. "

Mike Butler of the Stop the War on Tenancies lobby group said the rent increases would not last forever.

"These increases will continue as demand for rental housing is strong, and strong demand means that homeowners can currently transfer the extra costs to tenants instead of absorbing them." Strong demand will not last forever as new properties are in construction and immigration may decline or be reduced. "

MOST POPULAR LISTS IN OCTOBER

Lumsden Rd, Hastings – 76 inquiries within the first two days
Jackson St, Petone – 73 inquiries in the first two days
Norway St, Te Aro – 66 requests within the first two days
Malfroy Rd, Rotorua – 65 inquiries within the first two days
Sunny Grove, Wainuiomata – 65 inquiries within the first two days
Severn, Island Bay – 64 inquiries within the first two days
Livingstone Avenue, Hamilton – 63 inquiries within the first two days
Parkway, Wainuiomata – 63 inquiries during the first two days