Income focus grows for investors as tenants see smaller increases
New Ministry of Housing and Urban Development pulse surveys show a subtle but important shift in New Zealand’s private rental market, with landlords increasingly focused on near‑term returns and renters reporting slightly easier conditions.
Landlords shift from retirement focus to income now
The latest landlord survey of 702 respondents, run by Verian in October–November 2025, found that “landlords’ motives for investing are shifting towards more immediate returns”. Retirement is still the main motive overall, but “fewer landlords see their investment as something for retirement and increasingly see it as an additional source of income.”
Most investors are still buying existing rather than new properties. For those who have bought new builds, “the main appeal is the low level of maintenance required.” Only 5% bought a rental in the past six months and just 4% sold, underscoring how little stock is currently changing hands.
Rent growth eases, arrears remain low
On rents, the survey points to a stabilising picture. Since mid‑2023, “fewer landlords have increased rent in the last six months”, and when they do, they are “most likely to say they did so by $20 or less.”
Crucially for advisers concerned about tenant stress, “few landlords (6%) have tenants who are currently behind on their rent.” Among that 6%, just over half have repayment arrangements in place, although about a third report tenants who are four weeks or more in arrears.
This year, fewer landlords blame regulatory changes for rent rises. Those increasing rents are now more likely to say it is to cover their own costs, because they haven’t raised rent “for a while”, or to bring prices back in line with market levels. Only 12% are considering a rent increase in the next three months.
Landlord–tenant relationships continue to be broadly healthy: landlords “mostly feel their relationships with tenants are positive”, with less than 1% describing them as poor and four in five reporting no significant tenant issues.
Renters see smaller increases and slightly better affordability
The companion survey of 1,501 renters shows some alignment with the landlord findings. After a spike in late 2023, “fewer renters this year say they have had a rent increase in the last six months”, and where rents did rise, “increases are generally smaller than in 2023 (i.e. more renters now say it went up by $20 or less).”
Affordability perceptions have improved at the margin. “More renters this year say their rent is affordable,” mainly by shifting from saying it is unaffordable or borderline to “somewhat affordable”. At the same time, the burden remains heavy: about half of renters (51%) say rent eats up more than 30% of their disposable income, while 41% spend up to 30%.
There are also signs of stabilisation when tenants move. “This year, there are also fewer renters saying their rent increased when they moved,” with more saying they were charged about the same when changing tenancies. Only 6% are currently behind on rent, a share that has been “consistent over time”.
Mobility, pets, and dispute resolution awareness
About one in seven renters moved in the last six months, including 10% who chose to move and 4% who were asked to by their landlord or property manager. Moves are “most often” triggered by a landlord selling or increasing rent, but many tenants also shift to change their living situation or location.
Looking ahead, “almost one in five renters (17%) plan to move in the next six months,” with price the main motive and loss of income a growing factor.
Relationships remain broadly positive from the renter perspective too: “most renters feel they have a good relationship with their landlord”, with good communication, trust, and independence cited as key reasons.
Awareness of Tenancy Services is rising, with about eight in ten renters aware and most of them having visited the website. However, only 17% of those with issues say they have considered using mediation, and around a third have considered the Tenancy Tribunal.
Pets remain a live issue: just over two in five renters currently have pets in their rental, just over half say their landlord allows pets, and around one in ten want a pet but don’t have one because it isn’t allowed – a potential niche focus for advisers helping clients position pet‑friendly investment properties.
Click here to access the reports.
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