Tauranga's 9.5 per cent annual increase was a sign of the times, with Dan Lusby of Tauranga Rentals saying they had run out of properties to rent.
"Supply is right down and demand is right up," he said.
Landlords were able to increase prices because more people were competing for each rental.
"New listings were getting up to 80 applications a week. Owners were thinking, maybe we can get a wee bit more, and some a whole lot more," Mr Lusby said.
One Tauranga family has revealed they face a rent hike of about $120 a week.
"We were told a little while back it was going to go up but we did not think it would be that much," said the woman, who asked not to be named.
She said the increase was a big blow and they were now considering their options, whether they would be better off servicing a mortgage rather than paying rent.
"If you are paying high rents, you may as well buy. Things like having children and pets make it even harder if you are looking for a rental."
She conceded they had it good because their rent had not moved for a number of years. The figures from the Ministry of Business, Innovation and Employment showed the steep increase in the past 12 months was in stark contrast with the four previous years when average rents went up by between $10.82 and $3.47 a week.
Annual rent rises between 2010 and 2014 were 1.8 per cent, 3.3 per cent, 1.02 per cent and 3 per cent respectively.
Tauranga Property Investors president Grant Harris said increases over the last 12 months was a reflection of the current confidence in the city's economy and the high demand for rental accommodation. "Home buyers and investors from other regions are also turning their attention to the Tauranga market."
Rent increases varied according to the suburb, with the annual increase for a three-bedroom house in Pyes Pa, Hairini and Welcome Bay going up by 2.8 per cent compared with 6.6 per cent for Mount Maunganui and 11.4 per cent for Bethlehem and Otumoetai.
Property investor Lindsay Richards said the increase was purely supply and demand. Landlords had barely broken even during the years impacted by the global credit crunch.
"Now things are catching up with a bang. It is kind of overdue."
Demand for rentals was now so keen that 35 people responded overnight for a two-bedroom flat and he encountered the previously unheard of situation of every person in the first viewing saying they wanted the flat. "I cancelled the second viewing because I had enough people to choose from."
The good news for the supply of rental houses was as returns on investments went up, more people became property investors. However, higher house prices meant those same people were having to ask higher rents.
Mr Richards compared the average 5.1 per cent annual increase in prices on house sales in Brookfield over the last 18 years with the average annual 4.3 per cent rise in rents over 22 years.
