More rentals, fewer tenants: landlords face tougher leasing conditions
New Zealand’s rental market is suddenly awash with stock as more Kiwis head across the Tasman, shifting power towards tenants and forcing landlords and investors to rethink their strategies.
Latest figures from realestate.co.nz show a record volume of new rental listings in November, softer national rents, and sharp regional differences.
Rental listings hit record highs nationwide
In November 2025, realestate.co.nz recorded 7,253 new rental listings, a 12.4% increase on the same month last year. Total rental stock climbed to 8,801 properties, up 17.4% year-on-year.
Sarah Wood (pictured), CEO of realestate.co.nz, says the spike in supply reflects a mix of factors – including more Kiwis moving to Australia and landlords choosing to re‑let rather than sell.
“We know New Zealand's net migration loss to Australia has reached a 12-year high, and the majority of those moving have been in the prime tenant demographic – 20-39-year-olds," Wood said. "While this surge in supply of rental properties presents clear opportunities for renters remaining in New Zealand, it’s also creating a market that landlords and investors will need to navigate carefully.”
A recent Crockers Property Management & Tony Alexander survey shows a net 43% of landlords now say they are struggling to find suitable tenants – the highest level on record – underlining how quickly the balance between supply, demand, and tenant quality expectations is shifting.
Record number of rentals in key regions
The lift in supply is not confined to the main centres. Several regional markets hit all‑time highs for new rental listings in November:
- Hawke’s Bay: up 176% year-on-year to 127 new listings
- Manawatu/Whanganui: 32.5% increase, with 363 new listings
- Waikato: 12.3% rise to 783 properties
- Wairarapa: 52.7% jump to 84 new listings
“To see all-time highs in new rental listings across four regional markets during the same month is significant,” Wood said.
The influx of stock in these regions is giving tenants more choice and bargaining power on price and conditions, while landlords face growing competition to secure quality renters.
National rents ease, but some regions buck the trend
At a national level, average asking rents have edged lower:
- National average asking rent: down 3.1% to $626/week, from $646/week a year earlier.
However, not every region is following the same path:
- West Coast: average rent $518/week, up 8.4% year-on-year – and in the $500/week bracket for the first time.
- Southland: average rent $483/week, up 8.5% year-on-year.
“These increases suggest strong local demand and they’re a reminder that not all rental markets move in sync,” Wood said. “Seeing the West Coast cross the $500 mark for the first time is a notable milestone, especially in a market where the national average has declined.”
“Rental market reset” as tenants gain leverage
Wood says November’s numbers confirm the market is tilting towards tenants.
"With more rental properties on the market than ever before, alongside policy settings including changes to pet rules coming into effect this week, the dynamic between landlords and tenants is changing," the realestate.co.nz chief said. "It’s a rental market reset and everyone in the sector will need to adapt.”
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