Demand for rental properties across the country continues to rise, Trade Me says, and higher rental prices are likely to come along with it.
In a release today, Trade Me's head of rentals, Aaron Clancy, said the site has seen a 20 per cent increase in the number of inquiries on rentals nationwide to June.
The national median rent remains at an all-time high of $500 per week for a third consecutive month.
"We’re seeing an increasing interest for rentals but stock simply isn't keeping up, with the number of properties available for rent in June down 7 per cent on last year," Mr Clancy said.
"With rising house prices, some Kiwis are staying in the rental market longer than before to save for a house deposit.
"Also, with growing rents some tenants are staying put rather than look for a new rental in this tighter market.
Unfortunately for anyone looking for a rental property, this is a perfect storm and as a result we're seeing record rents, increased competition for properties and less stock, he predicted.
"The regions which are experiencing the largest increases in demand are Bay of Plenty with the number of inquiries up a 'staggering' 47 per cent on last year.
"Inquiries in Southland had also jumped 45 per cent along with Manawatu/Whanganui which rose 33 per cent and Canterbury up 32
per cent."
Mr Clancy said that there is often a lag between an increase in demand and rental rate rising, so it's likely that landlords will lift rents if the demand continues to outstrip supply.
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