A garden shed described as “private and quiet” with no bathroom, water or heating is being advertised at $450 a week – evidence of how far Bay of Plenty rents have soared.

The region’s city of Tauranga is now the most expensive city to rent in New Zealand.

Garden shed owner Judy Randell told Stuff she had already received many inquiries since posting the ad for her rental, which is in her backyard.

“Interest has been strong. For us it’s a good passive income and I like to help others.”

The shed is “fully furnished” with a bed, microwave and kitchenware, and Randell said there was an outdoor barbecue area, and even a vege patch, which was a strip of dirt along the side of the shed.

Randell says she will charge $450 to a couple and $330 to a single person.

While some question the owner about the safety of having no water or heat and a gas bottle inside, others say it's better than sleeping in a car.

Tauranga man Nathan Little says having too many restrictions only adds to the renting crisis.

“People throughout all history and still today all around the world have lived in significantly less and been fine. Healthy homes compliance, the RMA, they are the reason there's such extreme demand on housing.”

Rents in the region have been soaring, Trade Me’s property price index shows.

The median weekly rent in the Bay of Plenty region reached a new high in July at $660, up $50 on the previous year.

Rents in Tauranga are even higher, climbing $55 on the year prior to reach a new record at $695, making it the most expensive city in the country to rent, ahead of Auckland on $670, says Trade Me director Gavin Lloyd.

Rental supply in the Bay of Plenty was down 11 per cent year-on-year in July.

The most viewed rental property on Trade Me in the Bay of Plenty in July was a three-bedroom home in Papamoa at $530 a week, which had 2000 views in the first seven days, says Lloyd.

Evans Property Management owner Janine Evans says rental prices are high due to a lack of available properties, increasing demand, and external economic conditions.

Renters should be cautious when renting sheds or garages.

”Renting a property without essential amenities like heating, water, or proper sanitation facilities can lead to significant discomfort and potentially even health and safety concerns. Not to mention these homes will not comply with the Healthy Homes Standard.”

-Annemarie Quill/Stuff.