A Christchurch student believes his classmates will struggle with record high rents.
Pierce Crowley is the president of the University of Canterbury Student Association, and is studying law, history and political science.
His rent has increased $30 a week in the last year for a two bedroom townhouse that he shares with his partner.
“I was actually a bit shocked that rents had truly risen so quickly.
“When we moved in almost two years ago, I think $450 was probably standard for a townhouse and now seeing how much it's increased, this was a bit shocking to me,” said Crowley.
The cost of living was already a challenge for Christchurch students, according to Crowley, who said many will feel “the bite of rental increases” and consider cramming in more flatmates or cutting back on essentials like food.
Nationwide the median weekly rent for an apartment was up 8 percent year-on-year to $540 per week, while 1-2 bedroom houses saw a 4% jump to $520.
The figures from Trade Me Property are both record highs.
Trade Me Property Sales Director Gavin Lloyd said the March 2023 figures reveal a number of factors at play.
"The ongoing cost of living means people are looking for cheaper places, allowing their pay check to go further.
“Also the way people are living their life is changing - staying single for longer, or choosing to not have children, so they don't need the extra space,” said Lloyd.
The figures also show the average asking price fell from $971,450 in March 2022 to $866,000 last month - the largest annual drop on record, and the fourth consecutive month of price drops.
Wellington plummeted by $128,000, while Auckland had $164,000 knocked off its average asking price.
“When we take a look across the motu, the drops were particularly apparent in the regions which have had the biggest rises over the past few years.
“The Wellington and Auckland property markets have been running red hot post the first Covid lockdown in 2020, so it’s unsurprising that these regions have seen the sharpest drops,” said Lloyd.
Christchurch sale prices overall fell 3%, but in the past year, the price for a garden city apartment rose 14% to $664,000.
“While this is a substantial jump, if we look back over the past couple of years, Christchurch saw the lowest gains of any main centre.
“We are changing the ways we live our lives. Kiwi want smaller places with less maintenance, and we’re living our lives quite differently to how they did a generation ago - and an apartment is an attractive choice for a lot of people now.
“Christchurch is just catching up to the rest of us,” said Lloyd.
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