There's more good news for tenants
It's a good time to be a tenant, new data suggests.
Realestate.co.nz said the supply of rental properties across New Zealand was at the highest level of any April in almost a decade, last month.
There were 5868 new listings on the site in the month, up 24.1% year-on-year.
The last time the number listed was that high was in April 2016.
Auckland had the largest number of new listings followed by Canterbury and Wellington.
Wellington's average rental price was down 7.2% year-on-year to $647 and Auckland's down 3.3% to $702.
The national average was down $14 a week.
Realestate.co.nz spokesperson Vanessa Wiliams said $14 extra in a tenant's pocket per week over a 52-week period could result in a saving upwards of $700.
"That's a nice three-seater sofa for the flat or a weekend away. In today's current economic climate, $700 can go a long way."
She said there were a few reasons for the increase in listings.
Some were short-term rentals now being offered for longer terms.
"Looking at tax data, the number of properties that were being taxed in the short-term rental bracket had decreased and the number being taxed in the long-term bracket has increased.
"New Zealanders weren't travelling as much, they didn't have as much disposable income, the Airbnbs of the world weren't being used as much so the income of those had declined."
Another was that young people were staying at home longer with their parents because of the cost of living, or moving overseas.
A slower sales market also meant that investors were holding on to their properties.
"When a big in flood of properties happened was about May last year and the reason we put it down to was - the stories around the bright-line test changing and interest deductibility changing, that started happening in January and February last year.
"What happened was a large portion of investors took their properties out of the rental supply to get them ready for sale and then quite quickly worked out that if they did the maths on it, if they had bought in the last couple of years they had not realised the capital gains they wanted.
"You saw a bit of a flood coming back into the market as rental stock when it had come off for two to four months."
She said two increases in supply and one decrease in demand meant rental property stock had been healthy for a year now.
Central Otago and Lakes went against the trend with all-time high with an average rental price of $870 per week in April, a 3% increase year-on-year.
Although the region's 148 new listings reported in April was a 22.1% drop from the 190 listings in March, the region's April numbers reflect a 35.8% year-on-year increase.
"Central Otago and Lakes' rental activity corresponds with our sales property data, which confirms the region's reputation as one of the most highly valued markets in the country," Williams said,
"It's not surprising to see this region continue to command top dollar with its beautiful homes, attractive lifestyle, and strong tourist market.
"But any warm dry healthy home near good schools or bus stops and public transport is always going to be well demanded from tenants.
"Newer homes definitely, people with young families want to keep their little ones warm and dry. There will be markets right across New Zealand where there is rental stock challenges happening for a very long time that's where you see high demand."
rnz.co.nz
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