TIL CreativesGisborne, a remote city on New Zealand's east coast, has unexpectedly become the nation's most expensive place to rent, with median weekly rents reaching $680 in April 2025, surpassing Auckland and the Bay of Plenty. The cheapest property is a one-bedroom rural cottage, located 15 minutes from town, for $350 a week.
It is the highest median rate in the country, bucking the trend of falling rents in the rest of the motu, according to the latest data from Trade Me.
This surge is attributed to a combination of factors. The city’s housing stock suffered significant damage from Cyclone Gabrielle, which left over 170 homes uninhabitable. Additionally, the COVID-19 pandemic disrupted construction and development, further limiting housing availability.
Also read: New Zealand’s favorite, the “Southerner,” returns this October
Seven hours from Auckland and three hours to an urban centre, Gisborne’s one of the most remote places in New Zealand. It used to be seen as an inexpensive place to live, with the Government choosing it for a campaign to attract remote workers and digital nomads.
The shortage has been exacerbated by an influx of workers involved in recovery efforts and the region's primary industries, increasing demand for rentals. Property investors, facing high insurance premiums and rates, have been hesitant to invest, limiting the growth of rental stock.
Efforts are underway to address the crisis. A partnership between the government and Ngāti Porou aims to build 48 affordable rental homes in Gisborne's Kaiti suburb, with rents capped at 80 percent of the market rate. However, these homes are not expected to be completed until August 2026.
The situation has left many residents struggling. A local property manager noted that smaller units are in high demand, particularly among first-time renters and older tenants seeking affordable options. With limited supply and high demand, rental prices continue to rise, placing additional strain on the community.
Gisborne's experience highlights the challenges faced by regional areas in the wake of natural disasters and economic disruptions.
It is the highest median rate in the country, bucking the trend of falling rents in the rest of the motu, according to the latest data from Trade Me.
This surge is attributed to a combination of factors. The city’s housing stock suffered significant damage from Cyclone Gabrielle, which left over 170 homes uninhabitable. Additionally, the COVID-19 pandemic disrupted construction and development, further limiting housing availability.
Also read: New Zealand’s favorite, the “Southerner,” returns this October
Seven hours from Auckland and three hours to an urban centre, Gisborne’s one of the most remote places in New Zealand. It used to be seen as an inexpensive place to live, with the Government choosing it for a campaign to attract remote workers and digital nomads.
The shortage has been exacerbated by an influx of workers involved in recovery efforts and the region's primary industries, increasing demand for rentals. Property investors, facing high insurance premiums and rates, have been hesitant to invest, limiting the growth of rental stock.
Efforts are underway to address the crisis. A partnership between the government and Ngāti Porou aims to build 48 affordable rental homes in Gisborne's Kaiti suburb, with rents capped at 80 percent of the market rate. However, these homes are not expected to be completed until August 2026.
The situation has left many residents struggling. A local property manager noted that smaller units are in high demand, particularly among first-time renters and older tenants seeking affordable options. With limited supply and high demand, rental prices continue to rise, placing additional strain on the community.
Gisborne's experience highlights the challenges faced by regional areas in the wake of natural disasters and economic disruptions.
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
Read More News on
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
