Tenants gain leverage as rental supply outpaces demand.
Kiwis may be paying more at the supermarket, but renters are finally catching a break.
New data from realestate.co.nz shows the national average weekly rent fell 3.2% year-on-year to $628, offering rare relief after Stats NZ reported a 4.1% annual rise in food prices.
The shift comes as economists expect the Reserve Bank to deliver a 25-basis-point rate cut in November, signalling the start of gradual monetary easing that could further ease financial pressure for landlords and tenants alike.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said the figures mark a clear divergence between rental costs and broader inflation pressures.
“The fact that average rental prices are down nationally tells us the rental market is going in a different direction from the broader cost-of-living pressure, which is certainly welcome news for tenants,” Williams said.
“But for landlords, that means despite being hit with rising living costs, they may not be able to command the higher rental prices they would like.”
Listings rise as rental supply outpaces demand
The national number of new rental listings climbed 11.4% year-on-year in October 2025 to 6,750, with overall stock up 21.2%.
“Renters have plenty of choice right now, which landlords need to keep in mind,” Williams said.
“Anecdotally, we are hearing some landlords are increasing prices, but if their tenants move out, they may need to reduce the price to secure new tenants.”
Waikato sets record for new rental listings
In the Waikato, the average rental price fell 1.7% to $566 per week, but new listings hit a record 743 — up 16.1% year-on-year.
South Waikato led the regional surge with a 50% jump, followed by Waikato District (up 26.1%) and Hamilton City (up 21.8%).
“Now could be a good time to move to the region, with Hamilton recently awarded the title as New Zealand’s fastest-growing city for the third year in a row,” Williams said.
Auckland rents lose momentum
In Auckland, the average weekly rent fell 3.4% to $683, with seven of nine districts recording declines.
Waiheke saw the steepest drop, down 20.8% from $810 to $641 per week.
Wellington flooded with new rentals
The capital recorded price drops across all districts, led by Upper Hutt (-11.5%), Wellington City (-10.9%), and Lower Hutt (-8.9%).
New listings soared, particularly in Lower Hutt (up 101.8%) and Wellington City (up 75.3%).
“This is a classic case of supply and demand,” Williams said. “When rental supply lifts sharply, as we’ve seen across Wellington, it gives tenants more choice and negotiating power. Increased competition among landlords is likely contributing to the downward pressure on prices.”
Canterbury remains steady amid regional shifts
In Canterbury, the average weekly rent edged up just $1 to $586, despite listings climbing 10% and total stock up 21.8%.
Hurunui posted the biggest rental increase (+25.7%), followed by Banks Peninsula (+16.3%), which also led regional listings (+66.7%).
“As continues to be the case, regional variation is strong, which makes it particularly important for landlords to understand what’s driving demand locally,” Williams said.
“In some regions, increased supply is softening prices, while in others, stable or rising rents reflect ongoing competition for homes.”
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