Rental prices in Aotearoa have remained unchanged in May, according to Trade Me's latest Rental Price Index.
The index, released on Tuesday, showed the median weekly rent in Aotearoa remained stable at $650.
It comes after a strong uptick in rental supply - up 26 percent in May when compared with a year ago.
Demand has also continued to fall for the seventh consecutive month - down 30 percent when compared with the same time last year.
"While we do usually see demand taper off going into winter, this May represents a 30 percent drop compared with May last year, so these changes aren't solely seasonal," Trade Me Property Sales Director Gavin Lloyd said.
"There's been a lot of change in the economy in recent months. We've recently seen a pretty significant outflow of Kiwis overseas with record high emigration. Property prices have also been declining, and there's likely some renters becoming first-home-buyers.
"And of course we're seeing household incomes falling in real terms with the cost of living pressures, and we're continuing to see both public and private sector job cuts ripple through the economy. Moving house is a pretty costly exercise so with less income, more tenants are opting to stay put."
Lloyd added that the change in market dynamics with increasing supply and reducing demand meant prices could expect to stay flat for a period.
"It's been painful for renters in recent years," he said. "Following record-high rents, it looks like we're finally seeing some much-needed supply being injected back into the rental market. That's taking pressure off for those looking for a rental, with more options available."
Auckland was once again the most expensive region to rent, rising slightly by 1.5 percent to $690. Rents in the CBD however remained stable at $650, in line with the national median.
Meanwhile, some regions saw a fall in rent prices from April to May.
But while these regions saw a fall, when compared to a year ago prices are still high.
Compared with May last year, rents in Otago rose by 11.1 percent and by 26.7 percent in Marlborough.
The Otago rent increase was driven by Queenstown-Lakes district, which saw an eye-watering 19.3 percent jump year-on-year to a median weekly rent of $895.
"We do tend to see rents fluctuate in the Queenstown-Lakes district due to seasonal and local economic factors. The median rent in the district has actually fallen by $55 compared with April," Lloyd added.
Meanwhile in Marlborough, the median rent for May represented a $135 rent hike compared to a year ago.
"That's over $7000 a year extra that tenants will need to find," Lloyd said.
While it may look concerning for tenants, Lloyd reckons the regions will catch up to the national trends.
"Places like Queenstown have historically had a notable mismatch between supply and demand" he said.
"It looks like the markets in the Otago and Marlborough regions have a bit more catch up to do compared with the rest of Aotearoa, so we should hopefully see prices here begin to follow the national trend soon."
