‘It’s tough out there’: Tenants continue to feel the pinch as rent surges past inflation

At Tauranga Rentals we are very conscious of the pressure our Tenants are under paying their Rent but the same can be said for Investment Owners who have increasing Mortgage costs along with maintenance, repairs, Insurance and Council Rates.

Tenants are continuing to be hit hard in the back pocket as rent outpaces inflation, according to the latest Trade Me data.

The Trade Me rental price index for September showed the national median weekly rent increased by 7.5 percent year-on-year last month.

This was north of the 7.3 percent annual inflation rate reported by the Reserve Bank for the end of the September quarter.

Trade Me Property sales director Gavin Lloyd said the national median rent was $575 in September.

“If we look back to the same month last year, this marks a jump of $40, which no doubt renters will feel in their back pockets alongside other cost-of-living increases,” Lloyd said.

Lloyd said the national median weekly rent has shown slight fluctuations but remained comfortably in the $570-$580 bracket since January this year.

“When we compare last month’s figure with August, it actually fell by one percent, or $5,” Lloyd said.

“While this marks a slight drop, $5 a week won’t go very far and there’s no denying it’s tough out there. Living expenses are going up across the board and rents are no exception.”

The biggest year-on-year median weekly rent increases last month, were seen in Southland (+14 percent) and Otago (+10 percent) regions.

The data also showed Wellington and Hawke’s Bay were the only regions to see no change in median weekly rent last month when compared with the same month last year.

At Tauranga Rentals Ltd we review rents every year and whilst we continually look to achieve the best for our owners we are also aware of the impact on our tenants.

Contact Dan dan@taurangarentals.co.nz if you have any queries or input regarding rent reviews.