The national median weekly rent is down 0.8 per cent from $645 in June to $640 in July. It marks the first time in more than two years back-to-back falls have been recorded.

Trade Me Property’s customer director, Gavin Lloyd, says while any drop is positive for tenants, it may have limited impact after several increases over the past 12 months.

“The reality is rental prices are still $20 higher than they were this time last year,” Lloyd says. There would need to be another four months of decreases to get back to where they were a year ago.

He says whether they follow the usual seasonal pattern and pick up in summer, or if rising unemployment and a stagnant economy will suppress rents heading into the high season, is hard to guess.

The easing pressure on renters’ pockets comes as supply soars.

Rental listings on site skyrocketed in July to reach the highest number since 2019 – when Trade Me started recording data – and represent an 11 per cent increase compared with June and 46 per cent year-on-year.

Regions driving the high supply include Gisborne, up 124 per cent year-on-year, the West Coast (68 per cent) Hawke’s Bay (63 per cent), Auckland (62 per cent) and the Bay of Plenty (59 per cent).

“While there’s plenty of supply, renters in some regions may have a tougher time securing a place, particularly those in Gisborne, Marlborough, Otago and Nelson, where demand is outpacing supply.

“If we take Nelson as an example, demand across June and July is up 23 per cent while supply increased two per cent, making it an increasingly competitive market for those looking for a rental property.

“As rents rise, we see tenants looking to offset the costs by squeezing more people into a property. Sharing rooms and converting living rooms becomes more commonplace, which is one factor likely contributing to high supply,” Lloyd says.

While demand improved four per cent in the month prior, it remains 27 per cent down on the same time last year.

Tale of two islands

While the country’s North Island remains more expensive for renters with the top three spots being Auckland at $680 per week, Bay of Plenty ($670) and Wellington ($650) year-on-year, increases are also seen in the South Island.

The Otago region led the pack with rent increasing 15.9 per cent year-on-year to $620, followed by Waikato (7.3 per cent), Southland (6.7 per cent), Nelson/Tasman (5.7 per cent) and Marlborough (4.5 per cent).

Rent in Canterbury also hit a new high in July of $580, a $20 increase on June with Christchurch tenants now paying $30 more than the same time last year.

On the flip side, rent in Manawatu/Whanganui, Wellington and Taranaki recorded no change in the year to July.

All go in the Garden City

Christchurch city continues to prove resilient in terms of month-on-month prices, recording new highs for townhouses and properties with five or more bedrooms.

Between June and July prices for five-plus bedrooms increased 12.1 per cent to $1,110 per week, a record high. Likewise, townhouses in the city are also commanding top dollar, up 3.7 per cent to $560 per week. Units are also up more than 10 per cent over the same period.

“It’s interesting to compare what we are seeing in Christchurch to Auckland and Wellington. While the two North Island cities recorded falling prices for apartment rentals, Christchurch recorded a significant 8.3 per cent increase.

“Wellington also saw a 2.9 per cent drop for townhouses which stands in stark contrast to the record prices we see for the same type of properties in Christchurch. That said, Christchurch remains significantly more affordable for tenants.”