A Rotorua renter said he could “definitely feel the rise in rent” with half his weekly pay going towards rental costs for his three-bedroom home.
The median weekly rent in Rotorua was $550 in August, climbing $30 on the same time last year, according to Trade Me.
The median weekly rent in Tauranga was $680, which Trade Me said was the sixth highest for a district in New Zealand.
The most expensive region to rent in was Auckland’s North Shore City at $730 a week, followed by Wellington’s Porirua at $695 a week.
Levi TeUa lives in a three-bedroom house with his partner and three children. TeUa pays $650 a week on rent and said on one income, this was almost half his pay.
TeUa spent about two weeks searching for a rental property when he moved from Whakatane and went to five property viewings.
He said had “lost hope” on the viewings and believed landlords were picky about who they chose as tenants.
“First impressions do count these days,” he said.
TeUa felt for people who were on minimum wage trying to pay rent in the region.
He said he believed the property market had changed since he first started renting at age 21 almost a decade ago.
“It’s definitely changed from when I first started renting. [I can] definitely feel the rise in rent. I remember when I was younger, a three-bedroom was $400 [a week], now a three-bedroom is $650 [a week].”
TeUa said he wanted rents to “go down and stay down’ considering the difficulties of becoming a homeowner in the property market.
Trade Me Property sales director Gavin Lloyd said in a written statement, “Tauranga was a surprising addition to the top 10, coming in at No 6, with a median weekly rent of $680 in August, overtaking rents in Auckland and Wellington city.”
Speaking to the Rotorua Daily Post, Lloyd said, “The median weekly rent for a three to four-bedroom home in the Bay of Plenty was $690 in August while a one-to-two-bedroom home was $550.”
He said the reason rents were higher in August was due to “falling supply and increasing demand” and “rental price jumps” affecting most of the country.
Lloyd said rents were likely to “continue their upward trend over the next year” and that would “make it tough for Kiwis already facing rising costs across the board”.
Bay Financial Mentors Tau Awhi Noa manager Shirley McCombe said housing was a “huge problem in Tauranga”.
“We can’t reduce rents or mortgages, but we can help people manage their finances, give every dollar a job, plan, prepare and be mindful,’’ she said.
Rotorua Budget Advisory Service manager Pakanui Tuhura said, “People have been struggling to pay rent in Rotorua since pre-Covid-19 when the price of homes rose sharply and rents followed suit.”
He encouraged people to build a positive relationship with their landlord so if rental issues arose, they were “forewarned” and “able to plan ahead”.
Tuhura said preparing for rental costs to increase was dependent on “each individual or household [and] their circumstances” but increasing their sources of income or moving to a better-paying job were options.
Rotorua Rentals director Pauline Evans said she saw some tenants who struggled with their rental payments and suggested to clients who were in financial difficulties to get professional budgeting advice.
“Once this may have been seen as failing, however, with the cost of living biting across the board we’re needing clients to think more carefully about each purchase they make, and where they spend their money.
“As long as we have the demand from the market for rental accommodation, I see no decrease in the rent levels over the next 12 months,” she said.
Evans said to prepare for the next 12 months, tenants could consider taking in a boarder if their landlord agreed and to look at what they were renting.
“We are still having inquiries from single people wishing to rent three-bedroom houses because they have so many possessions. Maybe looking at rental accommodation closer to town so they can walk to work.”
Graham Allpress, the Ministry of Social Development’s acting regional commissioner, said the ministry had a range of housing products available to support eligible clients in maintaining suitable accommodation.
“These include ongoing financial support with rent and housing costs, as well as one-off payments to cover bond, rent-in-advance and situations when unexpected costs temporarily put extra financial strain on the tenant.
“We support more than 340,000 New Zealanders with Accommodation Supplement payments to help with their rent, board or the cost of owning their home,” Allpress said.
He said if people needed extra support to pay for accommodation or other essential living costs, they may also be eligible for Temporary Additional Support — this was a form of non-taxable supplementary assistance.
“If people are struggling with costs, we invite them to get in touch with us to see what support MSD may be able to provide.”
In July, the Rotorua Daily Post reported people living in places deemed Area 1 could qualify for the highest maximum accommodation supplement rate, while those living in Area 4 may qualify for the lowest maximum rate. Rates could vary depending on what other type of support a person is receiving or their income.
Tauranga — alongside Auckland — was in Area 1 where a single person with two children can receive a maximum of $305 a week.
In Area 2, which included Te Puke, Katikati and Waihi Beach, the same person would get a maximum allowance of $220.
In Area 3, which included Rotorua, the same person would get a maximum allowance of $160 a week.
Michaela Pointon is an NZME reporter based in the Bay of Plenty and was formerly a feature writer.
Clarification
Tauranga was the sixth most expensive district to rent in August, rather than Bay of Plenty.
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