Students say increases to their living loan and allowances are swallowed up by rent rises.

The student loan for living costs and student allowance rose by $20 from April 1.

It follows a $25 weekly increase in Budget 2022.

Otago University Students Association President Quintin Jane says since that Budget announcement, Dunedin student rents increased for 2023 by an average $15 to $20- and are expected to go up again at the end of this year for 2024.

"There'll be another increase at the end of the year and then any of that $20 will now be gone for pretty much every student in Dunedin."

"There'll always be landlords who will just look at what can students get now. Ok, they get this much, so I'll just increase my rent by however much that went up."

Student Associations say students are forced into more work and turning to food banks as rents rise.

Union of Students' Associations President Ellen Dixon says there are landlords and property managers that monitor those financial changes.

"We need to differentiate between mum and dad landlords, as opposed to those who are in property management  companies who are following the trends in these financial situations."

Green Party Auckland Central MP and Tertiary Education spokesperson Chloe Swarbrick says on average, students in a shared flat spend 56 percent of weekly income on rent.

"Major landlords in those particularly student-populace areas will say: Well, we know that these students now have more money in their back pocket potentially, and therefore we need to increase rents."