Dunedin Rental Market Update - August 2023
(Most recent Tenancy Services data June 2023)
Tenancy Services has recorded an increase in the median weekly rent from $450 in June 2022 to $460 in June 2023, continuing the overall trend for this year.
The number of bonds lodged has increased from 258 in June 2022 to 294 in June 2023, with the closed bonds also increasing from 243 to 279 for the same period.
The average number of rental listings available on TradeMe in June 2023 was 289, 49 of which were 2024 student listings. We have taken an average of 24 days to rent properties in June, which is again aligned with the average for the same period in 2021 further validating that the market has steadied.
While there is continued demand for quality rental accommodation, properties priced over $550 per week are generating less enquiry and taking longer to rent compared to properties priced between $450 - $480 per week.
This can be attributed the cost of living increasing by 7.7% in 12 months (according to Stats NZ). The impact is being seen across many household groups, with economists suggesting that households are likely to spend an extra $150 a week to keep up with rising costs. Additionally food prices have continued to be a pressure point across New Zealand, having increased by 12%.
Such conditions influence the rental market in terms of price expectations and what tenants are feasibly able to spend per week in rent, while also ensuring that they can afford to keep up with financial obligations, including heating costs particularly over the colder winter months.