How much do rents increase in NZ?

Do rents increase by the same amount every year?

No, rent increases change every year based on what’s going on at the time.

From the above graph, we can see rents have only stagnated twice at a national level.

• The first was during the 1997 Asian Currency Crisis.
• The second was in the wake of the 2008 financial crisis.

During mid-1999 rents were falling by 0.6% per year. This was chiefly due to the recession we were going through at the time. However, during the economic recovery and rebound from that downturn, rents skyrocketed and grew 11% per year by late 2003.

More recently, rental increases have hovered consistently between 4 - 6% per year.

How much are rents increasing in 2024?

Here at Opes Property Management, we primarily operate in Auckland and Canterbury. So here is what I am seeing in some of the major cities as a property manager.

Christchurch

At Opes Property Management, we’ve seen steady rent increases. This is both for Christchurch, and wider Canterbury.

Last January, I worked with a pair of investors. We rented their 3-bed, 1.5-bathroom townhouse for $545 a week. 12 months later, the new tenants signed a contract for $620 a week.

That’s a massive $75 a week rent increase.

In Rolleston, we've seen some rents jump 10%. A brand new 4-bedroom standalone property renting for $600, could now rent for $660 – 12 months later.

But New Build properties tend to get premium rent increases for the first few years. This is because they are brand spanking new.

The premium rent may ‘settle’ into the market after a few years. After that they'll start to see more typical annual increases.

In Christchurch City, the average expected rent for all property types are:

• 1 or 2 bedrooms: Up 6% on February 2023, to $500 a week
• 3 or 4 bedrooms: Jumped to $650, an increase of 12%.
• 5+ bedrooms: $920 a week, no change from the same time last year.

Source: TradeMe, February 2024

Auckland

Auckland rents are also increasing quickly. 

In February 2024, the average median rent was $680 a week. This is up 8% compared to this time last year.

For townhouses, the average expected rent was even higher, at $720 a week.

The investors we work with tend to do well with townhouses on the fringes of the city. Here tenancies are shorter (they turn over every 12 months) and rents tend to increase quicker.

In Auckland, the average expected rent for all property types are:

• 1 or 2 bedrooms: Up 8% on the same time last year to $570.
• 3 or 4 bedrooms: $780 a week, also an 8% increase
• 5+ bedrooms: an increase of 4%, to $1,100 a week

Source: TradeMe, February 2024