“A limited housing supply, worsened by weather events and a rise in short-term rentals for contractors, means quality long-term rentals are highly sought after,” said Hamish Harrison, property investment specialist at Ray White Gisborne.
“Smaller units or flats are most in demand, especially among first-time renters and older tenants looking for affordable, manageable housing options.”
Studios now top $400 a week
Once considered a budget-friendly region, even Gisborne’s smallest properties now carry hefty price tags. Studios closer to town are listed for more than $400 per week, while a one-bedroom rural cottage 15 minutes out is the cheapest available at $350.
Elsewhere in the country, affordability is improving. Rents dropped 4.8% in Otago, 2.9% in the Bay of Plenty, and 1.5% in Auckland. Wellington saw median rents for one- and two-bedroom homes fall 6.7%.
“The current supply remains up 27% on the same time last year and is helping to keep a downward pressure on rental prices, offering renters more options and leverage to negotiate,” Wylde said.