Northland bucks nationwide cooling trend in rental market
New Zealand's national median weekly rent fell 3.1% year-on-year to $620 in February, marking a continued cooling in the rental market.
The Trade Me Property Rental Price Index shows rents held steady from January but dropped compared to February last year, with Northland the only region to record a year-on-year increase.
Trade Me Property spokesperson Casey Wylde (pictured) said the data revealed a clear divide.
"While most of the country is seeing rents stagnate or even fall annually, the market in Northland is showing unique resilience," Wylde said.
The Bay of Plenty overtook Auckland as the most expensive rental region, with median weekly rent reaching $660 – $10 above the former leader.
The softening rental market coincides with improving housing affordability, which has climbed back toward decade‑best levels, with lower property values and falling mortgage rates easing pressure on first-home buyers across New Zealand. However, rental affordability remains stretched, with rents absorbing 27.9% of gross income nationally—still above the 25.8% long-term average.
Student centres face supply squeeze
University cities experienced sharp demand increases as students secured accommodation for the academic year. Palmerston North was the only tertiary centre to see rents rise, up 1.8% on a 21% demand spike and 14% supply drop.
"The squeeze on students was felt in Palmerston North, which was the only university city to see a rent increase," Wylde said.
Auckland and Christchurch both recorded 15% jumps in rental demand against shrinking supply, while Dunedin saw 14% higher demand competing for 8% fewer available properties.
Pet laws drive landlord policy shift
Tenancy law changes that took effect in December have triggered a dramatic shift in pet policies, with rental listings marked “pets negotiable” jumping to 39% in February from 13% in November—a record proportion.
Under the new law, landlords must respond to written pet requests within 21 days or the request may be treated as granted and can charge a pet bond of up to two weeks' rent in addition to the standard four-week bond.
Listings explicitly stating “no pets” fell from 52% to 29% over the same period, while properties proactively listed as “pets okay” declined from 18% to 9%.
The data points to landlords adapting their approach rather than embracing pets outright, with negotiation replacing blanket bans.
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