Rents across Auckland have risen at a much faster pace than house prices over the past year according to QV.co.nz figures — and competition for rentals is fierce in the city.
Tenants can expect to pay between $350 and $450 for a one-bedroom flat, more than $500 for two bedrooms; $650 plus for three bedrooms and from $700 to $1000-plus for four or more bedrooms.
The latest QV.co.nz E-Valuer data shows home values rose in some suburbs in the year to December 2017, and they dropped in others. However, values still remain high, meaning many Aucklanders have no choice but to pay higher and higher rents. Landlords' costs are also rising and thus it's likely rents will continue to rise during 2018.
The greatest rent rises in the former Auckland city council suburbs over the past year were in St Johns where the median rental rose 31.3 per cent to $650 a week. With a median value of $1.2 million, the suburb has a gross yield of 2.9 per cent.
Rents also jumped 25.6 per cent in the St Heliers/Glendowie area to a median of $750 a week. Its median value is $1.6 million so that's a gross yield of 2.5 per cent.
Rents in Ponsonby/Freemans Bay rose 16.5 per cent over the past year to $810 a week.
These suburbs have a median value of around $1.5 million, so a gross yield of 2.7 per cent.
On the North Shore, the East Coast Bays saw the greatest annual rent rise up 22.6 per cent to a weekly median rental of $650. With a median value of over $1.4 million, that's a gross yield of 2.4 per cent.
In Waitakere, Te Atatu South saw the highest annual rent rise of 10 per cent to $500 per week. With a median value of $821,000, that's a gross yield of 3.2 per cent.
Titirangi rents also rose 8 per cent to a weekly median of $520. This western suburb's median value is $820,000 so the suburb has a gross yield of 3.1 per cent.
In Manukau, Mangere East saw rents rise 11.4 per cent year on year to $390 a week; and the gross yield there is now around 3 per cent. In Papakura, Takanini/Ardmore rents rose the most, up 9.1 per cent over the past year to $537 per week. With a median value of around $700,000, that's a gross yield of 4 per cent.
In Franklin, rents rose the most in rural areas, up 11.1 per cent to 500 per week; with a median of $682,000, the gross yield is 3.8 per cent. In Rodney, Gulf Harbour rents rose the most, up 11.2 per cent to $575 a week. The area has a median value of $831,000, so that's a gross yield of 3.6 per cent.
During the year's first three months there is intense competition for rental properties as tertiary students are looking for accommodation.
This adds pressure to the housing shortage, but demand then tapers off.
For those looking for a rental property, that's worth keeping in mind.
You can analyse rental yields and property values for Auckland suburbs and regions around NZ at qv.co.nz/resources/property-investment-rental-analysis and use the rental calculator also on the website.