Competitive rents shorten vacancies and stabilise investor returns
Kiwi mortgage advisers have fresh evidence that rental demand is revving up again, particularly in Auckland and key regional centres, as Barfoot & Thompson reports the strongest renter activity in almost two years.
This is happening at a time when surveys suggest more landlords are prioritising steady income and increasingly weighing up selling.
Renter enquiry volumes at the country’s largest private residential property management agency hit 30,850 in January 2026 – a 37.6% jump on what was already a busy December, and 21.4% higher than January 2025.
“It was a very busy start to the year for our teams across Auckland, Northland, and Bay of Plenty, driven by renewed renter interest and action,” said Anil Anna (pictured), general manager property management for Barfoot & Thompson.
“This was the first month enquiries have exceeded 30,000 since February 2024, although still shy of recent peaks in 2023 when net-migration was at an all-time high.”
For advisers, that points to stronger underlying occupancy prospects for investor clients, even while rent growth remains subdued.
From browsing to applications – renters ready to act
The agency responded to the spike in interest by stepping up open homes and private viewings, up 9.4% year-on-year to 5,197. Applications rose even faster, climbing 18.4% on January 2025 to 4,075.
“Applications in January were 44% higher than in December, and the highest since mid-2024,” Anna said. “This shows renters are not just exploring what’s on the market, but are ready to act when they find the right home.”
Advisers working with investor clients can take this as a sign vacancy risk is easing, particularly in inner-city locations.
CBD apartments hot, wider market balanced
Renters moved quickly in the Auckland CBD apartment market, with most of the city branch’s listings snapped up over the month, especially by tertiary students.
“We’d advise renters looking in the city and fringe to move fast, and for property owners with apartments to let to list while demand is strong,” Anna said.
Outside the CBD, supply stayed relatively ample, with available listings only 6.8% below the recent three‑month average, helping keep pricing in check.
Rents flat but pricing discipline improves yields
Despite stronger enquiry, rent inflation remains modest. In Auckland, where the agency manages more than 17,500 properties, the average weekly rent at the end of January was $695.80, barely changed from December’s $696.19 and up just 0.6% year-on-year. One-bedroom homes led with 1.2% annual growth, while larger homes slipped 0.3%.
Anna notes more landlords are aligning with market reality and “pricing competitively to reduce the time their property may be vacant,” with around 70% of properties let at their first listing price versus a typical 55–60%.
Read the full Barfoot & Thompson report here.
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