Rental demand eases while lifestyle regions buck national trend
New Zealand’s rental market continues to cool, with the national median weekly rent falling to $610 in October, the lowest level since May 2023, according to Trade Me’s latest Rental Price Index. The median is down $10 month-on-month and 4% year-on-year.
The softer rental conditions come as the property market heats up, with new listings surging 29% and buyer demand rising 11%.
Trade Me Property spokesperson Casey Wylde (pictured) said the drop in rents marks a meaningful shift for tenants.
"We haven't seen the national median this low since early on in 2023, which is good news for renters who are looking at moving ahead of the summer months," Wylde said.
“While the median rent has reached highs of around $650 over the past couple of years, it's normal for prices to ease or slow towards the end of the year. Renters in the market should definitely make the most of prices being this low by checking out their options."
Wellington leads declines as supply surges
Wellington saw one of the biggest drops, with median rent now $600, down 8% year-on-year.
"The sharp, continued drop in Wellington suggests the market is responding to increasing supply," Wylde said.
"New listings in the region were up 23% month-on-month, and while search activity only lifted by 3% across the region, this supply surge is clearly easing the pressure on prices."
Other regions showing annual declines include Gisborne (-9%), Otago (-5%), Bay of Plenty (-4%) and Auckland (-4%).
Despite the softness, Auckland and Bay of Plenty remain the most expensive regions, both at $650 per week.
Smaller regions remain resilient
Some smaller markets are bucking the national trend. Nelson/Tasman recorded the strongest annual rent rise at 4%, followed by Southland (2%) and Taranaki (2%).
“These pockets of resilience, particularly along the west coast of the country, show that rental markets are incredibly localised,” Wylde said.
"The national figure is softening, but if you're looking in these smaller, resilient spots, tenants may find it hard to land a bargain or see a drop in rent.”
Christchurch bucks the trend in urban property rents
Christchurch is the only major city where urban property rents – apartments, townhouses, and units – increased year-on-year.
Urban median rents rose 1%, with apartments and units both up 2%.
“This highlights the continuing underlying strength of the rental market in Christchurch, where demand for smaller, more centrally located dwellings is still pushing prices up even as other major cities slow down,” Wylde said.
Listings rise as demand weakens
Rental listings nationwide rose 2% year-on-year in October, while tenant demand fell 6% compared to last year.
“This suggests we've either got fewer people in the rental market overall, or that tenants are choosing to stay put in their current flats. Either way, this lack of competition gives renters a bit more power right now,” Wylde said.
Lifestyle regions showed strong interest, with searches up 15% in Gisborne, 15% in Hawke’s Bay, and 10% in Marlborough, Trade Me data shows.
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