Wellington was the most expensive main centre to be renting in the country in February according to data. Photo: RNZ / REECE BAKER
New Zealand renters have had a 25 percent increase in their median bills in the five years since Covid hit, Trade Me data shows.
According to its statistics, which track asking rent for advertised properties on the site, the median weekly rent has increased from $510 in March 2020 to $640.
That is despite a period of rent "freeze".
Trade Me Property spokesperson Gavin Lloyd said the pandemic had clearly affected the rental market.
"The pandemic disrupted the housing market significantly from the minute the first lockdown was announced," he said.
"The 'stay home, stay safe' mandate led to increased demand, on what was already a very tight market, couple that with rising inflation and job losses, the pressure led to some big swings in rental prices in the months and years that followed."
In March 2020, the average ordinary hourly pay was $33.14. By December last year, it was $42.57.
Wellington was the most expensive main centre to be renting in the country in February, according to the data but rent in both Wellington and Auckland was up 1.5 percent month-on-month on a median basis.
Wellington's reached $665 and Auckland $660. Wellington's rental market can sometimes be influenced by the routines of students looking for properties at this time of year.
But Lloyd said there was a "perfect storm" brewing in Wellington driven by population pressure, limited rental supply and interest rates that had increased compared to Covid.
Bay of Plenty was the most expensive region, with a median weekly rent of $680.
Lloyd said property and rental prices there were "taking off".
The biggest movements in rent in February were for larger homes with five or more bedrooms.
In both Wellington and Auckland, they had a big rent drop]. Auckland's were down 6.1 percent in the month to a median $1080 and Wellington down 8.7 percent to $1100.
Christchurch rents for large properties were up 15.6 percent, though, to $1040.
It comes after Corelogic data recntly showed the nationwide median rent to median household income ratio is at 28 percent, compared to 26.4 percent five years ago and 25 percent 10 years ago.
Corelogic chief property economist Kelvin Davidson said the measure had been steady at 28 percent for three years, even as incomes rose.
He said it was a record level and the highest point for at least 20 years, based on Corelogic's data.
"Clearly, this measure suggests that although buying a house has become less unaffordable in recent quarters, the situation for renters hasn't really improved at all.
"It is also important to acknowledge that some will be finding it much harder than these figures suggest, given that many renting households may actually have incomes below the average. Put simply, they might pay typical rents, but have incomes towards the lower half of the spectrum."
