Investor confidence slips even while renters gain more choice
New Zealand landlords are finding it increasingly difficult to secure suitable tenants, even as rental conditions soften nationwide.
The latest Crockers Property Management & Tony Alexander People & Property Investor Insight survey – based on 285 investor responses – shows a net 43% of landlords struggling to find good tenants, the highest level on record.
This tightening comes at the same time as New Zealand’s rental market cools, with the national median weekly rent falling to $610 in October – the lowest since May 2023, according to Trade Me’s latest Rental Price Index. Trade Me spokesperson Casey Wylde said the pullback represents “good news for renters”, with supply lifting and competition easing in many regions.
This softer rental backdrop contrasts with investors’ worsening difficulty in finding high-quality tenants, highlighting a widening mismatch between available stock and tenant preferences.
Buying intentions fall as legislative worries rise
Only 15% of landlords are considering buying another property in the next 12 months, down from 18% in October. Investor interest has trended lower since early 2022 and may remain muted following Labour’s renewed capital gains tax proposal.
On the selling side, 32% plan to offload a property in the coming year, little changed month to month. Combined, the survey shows a net 16% intending to sell, a continuation of the subdued sentiment seen through 2025.
Long-term holding confidence declines
The share of investors planning to hold their properties for at least 10 years, or never sell, has slipped to a record low of 47%, down from 51% last month. Tony Alexander (pictured) notes this reflects demographic realities for long-time respondents now nearing or entering retirement, combined with rising ownership costs.
Investors swing back toward existing homes
The preference for existing dwellings rebounded this month, with 74% of investors planning to buy opting for existing stock. This follows an aberration in October and maintains the broader trend favouring already-built homes over new builds.
Rent increases stabilise as national pressures ease
Landlords’ intentions to raise rents have flattened around 41%, down sharply from mid-2024. Where increases are planned, the average target remains 3.8%, unchanged month to month.
Trade Me data backs this moderation, showing slowing rent growth in most major centres and notable declines in regions such as Gisborne, Otago and Bay of Plenty.
Bank attitudes remain steady
A net 11% of investors say their bank is becoming tougher, but the gauge remains on the more accommodative side of the ledger. This aligns with broader credit conditions stabilising as mortgage rates decline.
Top worries: Costs, legislation, tenant shortages
Investors continue to identify council rates, insurance and maintenance as their top cost pressures.
However, concerns about tenancy legislation have spiked to 10%, reflecting rising policy uncertainty.
Worries about vacancy periods are also trending higher – consistent with the survey’s record-high tenant-shortage reading– despite Trade Me noting weaker tenant demand overall.
Tenant shortage deepens heading into 2026
The survey’s biggest shift this month is clear: tenant availability has become even poorer, despite a cooling rental market, higher listings and softer demand.
This disconnect underscores how localised rental dynamics remain. While some regions see easing rents and rising supply, investor expectations around tenant quality, property type, and rent levels continue to shape outcomes heading into 2026.
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