Student rents surge in Dunedin despite more listings
Despite an influx of rental properties in key university towns, students in some cities are paying more to secure accommodation.
New rental data from realestate.co.nz shows that average rents in Dunedin City rose 12.2% year-on-year to $709 per week, even as rental listings jumped 66.2% compared to the same time last year.
Hamilton City also recorded a notable rise in supply, with 17.9% more properties available than in July 2024.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said Dunedin’s sharp increase in available properties has not stopped rents from rising, highlighting persistent demand from tenants.
“We’re seeing strong momentum in rental listings in some regions, and this appears to be impacting prices,” Williams said. “Key student cities continue to feel pressure in the rental market and even with more properties available, affordability remains a challenge, particularly for those on a tight budget.”
Massey University’s latest Home Affordability Report shows national home affordability improved 8.7% in the June quarter on the back of lower mortgage rates and higher wages. However, rental affordability remains uneven, with student hubs like Dunedin still facing price pressure.
Students in other cities benefit from cheaper rents
Elsewhere, students are seeing greater choice and lower rents. Year-on-year new listings increased while average asking rents fell in:
- Christchurch City: $650/week, down 3.2%
- Palmerston North City: $561/week, down 2.3%
- Auckland City: $687/week, down 2.8%
Wellington City recorded the steepest decline, with average rents falling 14.6% year-on-year to $602/week.
“There’s a noticeable shift happening in Wellington City’s rental market,” Williams said. “The sharp rise in available rental properties has put some downward pressure on prices, which could suggest that landlords are adjusting expectations to remain competitive in a market with significantly more choice.”
National rents hold steady amid rising supply
Across the country, average weekly rents held at $638 in July, down 1.7% year-on-year, while new rental listings jumped 16.2% compared to July 2024.
“Despite a noticeable lift in rental supply, national prices remained surprisingly stable during July,” Williams said. “This suggests rental demand is strong across much of the country, whether this continues will depend on how supply and demand play out over the coming months.”
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