Students have a discernible impact on rental prices, data shows. Photo / Supplied
Students have a discernible impact on rental prices, data shows. Photo / Supplied
Changing student populations have a real impact on rental prices for the university-centred cities of Dunedin and Wellington.
Rental bond information from Tenancy Services, mapped into interactive graphics by the Herald, show clear fluctuations in average rental prices in both cities that correlates with the academic year.
Dunedin property spokeswoman Liz Nidd said a substantial number of leases for flats in Dunedin were full 12 month leases, despite not being occupied all of that time.
"Those properties sit there empty over the summer in most cases," she said.
Many students continue to pay rent after leaving town at the end of the academic year, she said.
"As a property owner, if you are going to provide property for that university market you've otherwise got an asset that's going to sit there for three months non-earning."
The rental property market had "always been like that" and students competed over flats for the next study year as early as August, she said.
Dunedin shows a regular trend year on year, possibly due to the movement of student population resulting in a significant change in the demand for rentals.
Dunedin shows a regular trend year on year, possibly due to the movement of student population resulting in a significant change in the demand for rentals.
"Those flat lists go out in August ... you've got people signing up in August to make sure they've got that special flat that they want for the next year.
Most landlords hoped to find tenants during the initial student market sales period and those that missed out could find themselves short.
"Those owners are sometimes looking at not getting the full year for the next year because if they don't get them leased before the students head off for Christmas there's a good chance they're not going to get them sorted before the students come back."
While demand for flats had been constant over the years, Ms Nidd said boundaries for student accommodation had changed, resulting in a "bit of a moving feast".
"The boundaries of the campus have changed and there's quite a lot of multi-unit developments put in right in the heart of campus."
The university itself was also offering more accommodation, she said.
Rents in January in Dunedin showed an average of $361/week, which dropped to $294/week in June, then jumped back up to $390/week in October - perhaps picking up on students securing properties for the following year.
It's a big change from 1993, where rent in the student town was an average of $145/week

Auckland's rising house prices push rent up

Mean rent in Auckland has passed the $500 mark for the first time this year.
Mean rent in Auckland has passed the $500 mark for the first time this year.
While many have chosen to rent rather than buy in Auckland due to rising house prices, average rent in New Zealand's biggest city passed the $500 mark for the first time this year.
Rental bond information from Tenancy Services, mapped into interactive graphics by the Herald Insights, showed the city's average rent now stands at $514/week, rising from $491/week in January.

North Shore rents are the country's highest at $543/week and Auckland's rents have been rising strongly since 1993, the information showed.
Auckland- <i>Click on image to explore regions</i>
Auckland- Click on image to explore regions
In 1993, Auckland's average rent sat at $200/week, with the North Shore a little higher at $209/week.
With the city's rents well above the national average, the rental gap between Auckland and the rest of the country is widening.
Comparatively, rents have an average of $414/week in Wellington, $394/week in Christchurch and $390/week in Dunedin.
Wellington- <i>Click on image to explore regions</i>
Wellington- Click on image to explore regions
In Christchurch, however, rents rose steeply after the earthquakes in 2010 and 2011.
Christchurch- <i>Click on image to explore regions</i>
Christchurch- Click on image to explore regions
While average rent in the city was $291/week in August 2010, it's risen to a current figure of $394/week and peaked at $434/week in February this year.
Dunedin-<i> Click on image to explore regions </i>
Dunedin- Click on image to explore regions
The data also showed that rents in Wellington and Dunedin fluctuate on a seasonal basis, due largely to student populations.

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