The median weekly rent in Tauranga has grown by $30 year-on-year but two local industry experts say price increases have slowed over winter.

The median rental price rose from $430 a week in July last year to $460 in July this year, according to the latest Trade Me figures.

But the price stayed the same in June and July and decreased by $15 from May ($475).

In January and February, the median weekly rent in Tauranga was $450. That grew to $460 in March and then $475 in April and May before dropping back down in June and July.


Dan Lusby, of Tauranga Rentals, said there was now a bigger supply of new dwellings and he believed the building industry had started catching up with supply as "investors don't see any advantage of having their money in the bank".

Mr Lusby said over the wetter, colder months of winter, there had been less property let and more property had become available.

He said tenants should still be expecting rent increases, however, because while the price increases had definitely slowed over winter and the number of people looking had also slowed, rental inquiries had begun to increase last month.

But Rentals BOP's Gary Prentice said there was still a shortage in all areas of rental accommodation - from one-bedroom properties to four or more-bedroom properties - and he said that had not really changed much in the past six to 12 months.

Mr Prentice, based at Mount Maunganui, said the rental supply situation might be different to Tauranga, where Mr Lusby was based.

"Demand certainly hasn't eased at the Mount - still good demand and very little available."

Mr Prentice said the high rents being achieved four-to-six months ago seemed to have levelled out and in some cases had even come back a little.

Tauranga's Budget Advisory Service manager, Diane Bruin, said some clients were desperate for homes to rent and some landlords were charging $500 plus "because they can".


She said there are also people living in substandard accommodation with leaking roofs and faulty workmanship.

"And tenants are too scared to complain in fear of being thrown out of a rental and having nowhere to go."

Houses needed to be insulated and safe to live in, Mrs Bruin said.

"Rent cost needs to be reasonable and reflective of the cost to provide a rental property, not unreasonable as these clients are finding.

"We are unsure how these people will be able to pay this rent amount as they haven't enough left for food and other essentials."


Dan Lusby, of Tauranga Rentals, says tenants are having to move quite often because their landlords are either selling, moving back in or putting the rent up and they could no longer afford to stay.

Mr Lusby said tenants stayed as long as they could in a rental as it would cost them so much to move and usually the ones available would be more expensive.

He said a young couple with a tight budget, who were very good tenants, recently had to move out of their rental because it got quite a lot of condensation and was not able to be fixed.

"They moved into another rental and that weekend the owner decided to move back into it, so they have to find somewhere else within 42 days."

Median weekly rental prices in Tauranga - July 2016 compared with July 2017
•Apartments increased from $450-$460 a week.
•Townhouses increased from $445-$450 a week.
•Units increased from $340-$350 a week.
•Small houses increased from $370-$390 a week.
•Medium houses increased from $460-$495 a week.
•The median weekly price for large houses was $600 a week last month, but data for July 2016 in that category was not applicable.
•Overall, the median weekly rental price in Tauranga increased from $430-$460 a week.
Source: Trade Me, overall and broken down by type of rental property.