Dunedin Rental Market Update - August 2024
(Most recent Tenancy Services data June 2024)

Tenancy Services recorded an increase in the median weekly rent from $460 per week in June 2023, to $495 per week in June 2024.

The number of bonds lodged decreased from 294 in June 2023 to 225 in June 2024, with the closed bonds decreasing by 15% for the same period. 

The average number of rental listings available on TradeMe in June 2024 was 274, which is a 5% less than the number of listings available in June 2023. 30% of the listed properties have been recorded as being for the student market.

In August 2024 the Reserve Bank of New Zealand's (RBNZ) announced the decision to reduce the official cash rate (OCR) by 0.25% to 5.25% which signals the start of a new phase of monetary policy easing. 

While the OCR cut and anticipated lower mortgage rates may provide some relief to households, the overall impact on the rental market throughout New Zealand is likely to be balanced by ongoing economic uncertainties, including a weaker labour market and restrained housing demand. 

This means that tenants may not see significant changes in rental prices (in the near future), but the market will remain sensitive to broader economic conditions which include the cost of living, rising unemployment and lower job security.