Tenants gain choice and bargaining power as supply surges
Central Otago/Lakes District has cemented its place as New Zealand’s most expensive rental market, with average weekly rents now more than $200 higher than anywhere else in the country, new data from realestate.co.nz shows.
The region’s average rental price hit an all-time high of $891 per week in December 2025, up 11.8% on a year earlier and well ahead of the national average of $626 per week. Central North Island recorded the next highest annual increase, with average rents up 6.2% to $597.
The rental shifts come as households continue to grapple with higher living costs and the prospect of interest rates remaining broadly stable through 2026, with any future RBNZ moves likely to flow quickly through to investor holding costs and tenants’ weekly budgets.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said the figures highlight a widening gap between lifestyle hotspots and the rest of the country.
“Central Otago/Lakes District continues to sit in a league of its own, driven by strong demand and a limited pool of rentals which is pushing prices to record highs," Williams said.
"We’ve seen this week that first-home buyers made up 19% of all property purchases in Queenstown last year. When weekly rental prices start closing in on mortgage repayments, it’s no surprise that renters are making the leap into homeownership and our data shows that shift is well underway.”
National rents fall as most regions see declines
While Central Otago/Lakes surges, renters in much of New Zealand are seeing some relief. The national average rental price fell 2.4% year-on-year to $626 in December 2025.
Thirteen of 19 regions recorded annual declines in average asking rent, with the largest falls in:
- Coromandel: down 41.0% to $539/week
- Wellington: down 8.4% to $663/week
- Hawke’s Bay: down 7.5% to $614/week
Williams said the data points to “a clearer split between premium lifestyle markets and the rest of the country,” with many regions now seeing softer rents as more stock hits the market.
More listings give renters extra leverage in 2026
The number of new rental listings jumped 19.8% in December 2025 to 5,349, up from 4,464 a year earlier, giving tenants more choice heading into 2026.
Wairarapa led the way with new listings up 142.9% year-on-year to 51. Nelson & Bays followed with a 92.6% rise to 52 new listings, while Hawke’s Bay saw an 88.5% increase to 98 new listings.
“A nearly 20% increase in new listings certainly provides more choice for renters, and in some regions, like Wairarapa and Hawke’s Bay, that choice has doubled,” Williams said. "With stock building and competition among landlords rising, renters will continue to find themselves in a stronger position to negotiate on price or lease terms in 2026."
Strong stock levels give renters breathing room
Total rental stock reached 7,577 properties in December, up 15.9% on a year earlier. Hawke’s Bay recorded one of the biggest jumps, with available rentals up 151.2% to 108 properties.
Wellington’s stock rose 91.5% year-on-year to 925 properties. Wairarapa, Nelson & Bays and Gisborne all reported increases of more than 80%, with stock up 82.9% (75 properties), 88.5% (49 properties) and 82.8% (53 properties), respectively.
Williams said these shifts are creating a patchwork rental market heading into the new year.
“The continual abundance of rental stock is giving renters breathing room but places like Central Otago/Lakes District remind us that lifestyle markets operate differently," the realestate.co.nz spokesperson said. "The big question for 2026 is whether the rental supply nationally translates into lasting affordability or whether the regional rental divide grows.”
The pressure in Central Otago/Lakes also reflects ongoing tourism and lifestyle‑driven demand, raising questions about how well local rental markets can accommodate year‑round residents if migration and visitor numbers stay elevated in 2026.
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