“Nearly half of our clients live in private rentals and due to the high demand, we see some of our whānau paying on average $455 to $750 per week for a two to four bedroom home.
“In a lot of cases, this can be 50 to 80% of their income.”
It is widely accepted that tenants should spend no more than 30% of their gross income on rent.
Housing costs higher than 30% of income is a widely used indicator of “housing stress”.
Whangarei Budgeting Service senior financial mentor Anna McIntosh said there had been a significant increase of individuals and families struggling with the market value of rentals.
All three of Northland’s districts - the Far North, Kaipara, and Whangārei - have comparatively high rental unaffordability, according to the Salvation Army report.
Kaipara ranks fourth of 66 territorial local authorities [TLAs] in New Zealand for unaffordability, with a median market rent at 39% of the district’s median income.
Far North ranks seventh of TLAs median market rent at 38% of the median income and Whangārei ranks 14th at 34%.
However, suburbs and towns vary considerably within those districts.
For example, Ōtangarei in Whangārei has a median income of $896 a week and a median rent of $502 - meaning 56% of a resident’s income is potentially spent on rent.
Report author Paul Barber, a principal policy analyst with The Salvation Army, said housing unaffordability is a moral issue.
Barber said the responsibility is “on everyone” including landlords and governments to manage rental affordability.
Two new Salvation Army reports highlight falling living standards in New Zealand as rental prices soar.
“Every New Zealander has a right to decent housing.
“We’re really concerned about private sector rentals because they’re so unaffordable for so many people.
“We’re seeing an increase in homelessness and people living in unsafe and unsatisfactory situations because the rent takes up so much of their income.”
The report focuses on lower-income renters in the private rental sector and introduces the idea of a fair rent for homes in lower-income communities being 30 percent of weekly income.
This would complement other necessary housing policies, such as increasing social housing supply.
McIntosh said there had been an enormous increase in referrals “to our service, the largest of these being from Work and Income and numerous housing providers.
“The rental prices have especially impacted the vulnerable community with more superannuants, people with high medical needs and disabilities needing to access to foodbanks and other financial assistance while waiting for affordable and suitable housing.”
As of August 2024, the median weekly rent in New Zealand was $640 - 3.2% higher than the previous year.
A new Salvation Army report is calling for “fair rent” for homes in lower income communities being 30 percent of weekly income.
According to TradeMe, Northland recorded a 2.6% increase in rental prices from 2023 to 2024, bringing the median weekly rent to $590.
The report precedes the Salvation Army’s State of the Nation 2025 report released yesterday, which found “serious challenges and falling living standards”.
More than 400,000 people needed welfare support in December 2024 - the highest number since the 1990s.
The report highlights that the pace of new builds is decreasing, rising numbers of homeless people, and rent for private rentals continues to be unaffordable for many on low incomes.
Barber said the Salvation Army is developing a tool that can help landlords access comprehensive information about lower-income communities, rather than price their houses at market rents.
Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with roading, lifestyle, business, and animal welfare issues.
