Auckland rent crisis at record high
Auckland rental prices continue to rise as demand outpaces supply. Some landlords have made the best of this situation by raising rents by up to 25%, raising the median rent by NZ$55 dollars on those being offered last year. The average weekly price for a three bedroom property in the median to high end area of the market is now NZ$850.
While the practice of raising rents is driven my market forces, and reflects what the market is willing to pay, it is putting the strain on existing tenants and migrants searching for their new rental homes.
Prices are unlikely to fall until the Auckland housing shortage is fixed. This will not happen quickly, as the disappearance of finance companies during the recession has left property developers short of cash flow.
As a result of the Earthquake damage, Christchurch has also suffered from a reduction of expatriate standard rental properties available. (read more on Auckland)