92% of Hamilton renters saw a rent hike last year

According to the latest data from our rental portfolio of 1,250 investment properties, a staggering 92% of Hamilton renters received a rent increase notice in the past year.

On average, those tenants faced an increase of $28/week, translating to a 5.6% rise, mirroring inflation rates.

Can rents continue higher from here?

Several factors will influence the next move for rents:

1. Strong Demand: Population growth remains strong. Latest stats show NZ’s had net annual migration of +111k for the year to March, and many are finding their way to Hamilton. 

2. Sluggish Supply: The construction of new homes is slowing. Kainga Ora has virtually stopped altogether, and new dwelling consents are down 25% compared to last year.

3. Persistent Inflation: Despite lofty interest rates, non-tradeable inflation just will not sit down. Costs for property investors (like rates and insurance) continue to climb. Hamilton City Council has approved a 16.5% rate increase, adding roughly $470 to annual rates bills (more or less $10/week).

4. Deflationary Forces: The reinstatement of interest deductibility for property investors will boost their cash flow, easing pressure on rent hikes. Additionally, home loan rates are expected to soften by year end. Respite exists.

Looking at the list above, my feel is that we’ll see another 3-5% increase in Hamilton rents over the coming 12 months.

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson began investing in property aged 21 and has since bought, developed and sold real estate in the UK, USA, South East Asia and New Zealand. After a career in banking he is now on the management team at Waikato Real Estate and has contributed to property articles for NZ Herald, Stuff and Property Investor Magazine.

Based in Raglan, Oliver's passions extend beyond property to surfing, hydrofoiling, and providing a taxi service for his children.