Renting a typical kiwi house now costs $500 a week

The median weekly rent for a typical New Zealand house hit $500 for the first time ever in February, meaning the annual cost for tenants is now $26,000 a year, according to the latest Trade Me Property Rental Price Index.

A typical rental property has 3-4 bedrooms, with these properties comprising nearly half of all those listed for rent on Trade Me Property.

Head of Trade Me Property Nigel Jeffries said these rents have lifted by over 30 per cent in the past five years. “Back in 2012, tenants were forking out $380 a week or just under $20,000 per annum for a place with three or four bedrooms. Fast-forward to today’s rental market and tenants are staring down the barrel at an additional $6,000 on their yearly bill,” he said.

The largest five-year increase in median weekly rent for 3-4 bedroom properties was in the Bay of Plenty, where it rose from $340 to $465 – adding $6,500 to the annual cost of renting. Auckland was not far behind, with a rise of $5,460 over five years.

The annual change for median weekly rent across all property types stayed largely unchanged in February.

“Tenants are paying $450 a week across the country for a rental property, and that figure has remained steady for the past three months. Even so, it’s a five per cent rise on a year ago, and they can expect to be paying an extra $20 a week,” Mr Jeffries said.