Rotorua Rentals owner Richard Evans said the Trade Me figures were distorted by the properties available.
"I'd say 70 per cent of the properties we rented in June were under $300. There aren't many in that upper bracket to rent.
"The demand for high quality homes is huge but the supply is rock bottom."
Mr Evans said he had not seen tenants so highly stressed "in a long time".
"It is quite sad, particularly the solo mothers who admit they have bad history but are begging for a second chance.
"It is a cycle though and we will see it level out. It happened in 1993, 2000 and 2008 - we won't see rent prices fall back but they will stagnate."
Russell Hardie Rotorua managing director Donna Russell said she was seeing rents "increasing as rapidly as ever".
"Those already in rental homes are having their rent increased slower than the market rate because there's too wide a gap.
"There are still a lot of people who are looking and not a lot available."
Ms Russell said she had just two two-bedroom and three three-bedroom properties available.
"Most are your average run of the mill homes as well. Nothing fancy, but are going for anywhere between $340 and $360, when a year ago they would have been around $285.
"Talk to anyone who has been looking for a rental and they will tell you it's been hard. But I think now landlords don't have to settle for tenants, those with bad history are seeing it come back to bite them."
She said costs for landlords had also increased.
"Meth testing after each tenant, installing smoke alarms and insulation is driving the cost up for landlords which unfortunately does go down the chain."
She acknowledged there were still substandard rental properties in the city, which would only change once the landlords responsible changed their mindset.
Rotorua woman Hana Bellingham, her partner and two children, moved back to the city because they couldn't find a rental in Auckland.
However, they have been living with her mother since February, unable to find a suitable home.
"We didn't want to put ourselves in that position again, our only option was to get out of [Auckland] and move in with my mum."
She said the rental prices in Rotorua were "not incredibly far behind" Auckland.
"Auckland is an extreme example of a rental market out of control, and this has a flow-on effect here."
Having lived away from Rotorua for about a decade, Ms Bellingham said she was expecting a bigger difference between the rental prices.
"I thought there would be more options [for us] . . . I don't agree that rental prices are dropping in Rotorua."
She said it was a "real privilege" to be able to able to live with her mum in her home.
"I think that's a difference between [us] and the 1 per cent of New Zealanders who are homeless. This [situation] is preventable. There are things we can do to change it in policy and government.
"I try to stay aware of the situation. If the opportunity for more personal space came up I'd go for it."
She and her partner, who are both gardeners, had a goal to build their own home on her whanau land up north, as their ability to buy a house were limited.
Alison Hayes, 23, also moved back in with her mum in Western Heights just under a year ago after splitting with her partner.
Ms Hayes, who works as a supervisor at Countdown, said it was unaffordable for a single person to rent in Rotorua on their own.
"I wouldn't mind living with other people but nothing was available . . . I work full time, I don't have much debt and I get a decent wage but it's still not enough."
She hadn't noticed a decrease in rental costs.
"One-bedroom flats are going for $200 plus, plus power and utilities."
Looking online on Trade Me and elsewhere the options were "completely out of my price range".
"I've got friends who are really struggling and a neighbour of mine has 12 days to find a house and he's got four kids. He's scared he's going to be homeless."
She said she was happy living at home with her mum for the time being.
"I'm happy to help her out with bills while I keep looking."
- Additional reporting by Georgina Harris
