New Zealand’s most expensive place to rent a house

The Bay of Plenty may have one of the most beautiful beaches in the world, and Te Puke can rival Hawaii as a vacation destination thanks to Christopher Luxon, but it’s now New York’s most expensive spot. Zealand to rent a house, with rents going up to $1,500 a week.

The demand for homes is also skyrocketing. A two-bedroom house on Oropi Road, Tauranga, with a weekly rent of $400 received 169 watchlists in its first seven days on Trade Me, said Gavin Lloyd, director of property sales for Trade Me.

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A four bedroom house in Te Puna, Bay of Plenty is currently listed on Trade Me at $1500 per week

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A four bedroom house in Te Puna, Bay of Plenty is currently listed on Trade Me at $1500 per week

A four-bedroom house in Te Puna listed at $1,500 per week is currently the most expensive rental on the Trade Me site. There are also four-bedroom houses in Ōtūmoetai and Pāpāmoa for $1,200 per week each.

Last month, Bay of Plenty’s median weekly rent surpassed Auckland and Wellington for the first time, making it the most expensive area for tenants in the country according to Trade Me’s latest rental price index.

In June, the median weekly rent in the Bay of Plenty area hit a new high of $610, marking an 11% year-on-year increase. Compared to the previous month, this represents an increase of 2%.

Median weekly rents January-June 2022 in Wellington, Auckland, Bay of Plenty, nationwide (* - new record high)

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Median weekly rents January-June 2022 in Wellington, Auckland, Bay of Plenty, nationwide (* – new record high)

Lloyd said a shortage of rental property was driving up prices in the area.

“Rental growth in the Bay of Plenty comes down to a 5% decline in supply in June in the area compared to the same month last year, leaving tenants with fewer options and driving up the costs. By comparison, the Wellington region saw supply rise 51% year-on-year in June, while Auckland saw a 15% jump,” he said.

The most expensive district in the Bay of Plenty region in June was Tauranga, where median weekly rent rose 11% year-on-year to $640. In Rotorua District, the median weekly rent was $550 in June, jumping 12% year-on-year.

A four-bedroom house in Ōtūmoetai, Tauranga is listed on Trade Me at $1,200 per week

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A four-bedroom house in Ōtūmoetai, Tauranga is listed on Trade Me at $1,200 per week

People desperate for rentals wonder how anyone can afford these prices.

Marnie, who didn’t want her last name used for privacy reasons, thinks the government needs to step in. She is looking for a one or two bedroom property for herself and her partner and has been shocked by the rise in prices in less than a year

“The government must do something. The owners are getting too greedy and driving up the prices. We are lucky to have jobs, but most people’s wages go to rent. Add to that the increase in gas and food and everything else – you can see why we’re seeing more and more people – even families – simply living in their cars.

She said she couldn’t understand why rents in the area are the highest in the country.

“There is hype around the area with the Mount, but prices are high everywhere – I saw a property in Pongakawa away from Tauranga for $1100 a week. other beautiful areas of New Zealand that are not so expensive to live.

Marnie said there was so much competition for properties.

“I went to see a simple two-bed property in Pāpāmoa where the kitchen was so small the fridge was in the living room and a bedroom where you would struggle to fit a bed into it. It was $550 and every man and his dog was there watching it.

Evans Property Management owner Janine Evans said people were teaming up with others to pay higher rents.

“We are seeing more couples sharing accommodation now to help offset the increased expenses. Momentum is changing in high-end properties as rents continue to rise.

An influx of people moving into the area both from abroad and from other parts of the country was contributing to higher prices, she said.

“We ask our tenants why they chose to move to the Bay of Plenty. The answer is either to come back to be with the family, to experience our beautiful weather and beaches, the people and the central location the BOP has to offer. This influx causes a sharp increase in rental demand which, in turn, drives up prices.

Janine Evans of Evans Property Management

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Janine Evans of Evans Property Management

Prices were also on the rise due to lack of supply, she said.

“Rents are now higher than ever in the BOP region. As demand continues to grow, this inevitability leads to a decrease in the supply of available stock. Add to that our current shortage of land supply, what we’re seeing is this snowball effect of rent increases.

“Until we have more land and/or resource approvals available to build (apartments/townhouses etc.) in high density areas, the influx of people will continue to drive prices up. “

Evans said some landlords don’t have the ability to raise rents due to changes in tax depreciation laws and high interest rates, which could even lead landlords to sell property, which which means there was even less supply.

Evans urged people looking for rentals not to give up hope.

“Keep putting your best food forward. Even though you may have missed this time, we confirm with them that there is nothing wrong with your application, it is purely a numbers game.

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