As rents can only be reviewed 6 monthly or even at longer periods they are bound to lag behind prices. Not only that, but there is still a surplus of cheap rentals available in the inner city apartment market.
Lag they may, but if the new regulations regarding LVR’s continue to bight the number of tenants seeking long term rentals will see rents slowly but surely rise
Rents rise, but not dramatically
Auckland rental costs are not increasing at the same rate as house prices, new data shows.
Barfoot & Thompson figures showed the average rent for a three-bedroom property, including houses and apartments, in Auckland in September was $455 a week.
The average rent for a three-bedroom home in May was $446 a week.
Barfoot & Thompson director Kiri Barfoot said the 2 per cent rise in the past six months contradicted the belief that property investors were passing on higher property costs to tenants.
Rents were increasing but the rate of increase was lagging well behind house-price rises, she said.