Wellington vacancies surge while Otago tightens for landlords
Fresh figures from realestate.co.nz show a sharply diverging student rental market – and a changing risk profile for Kiwi property investors and the advisers who support them.
In January, Wellington reached a record high of 965 properties listed for rent, “a whopping 54.2% more rental listings than the same time last year.” By contrast, Otago’s new rental listings were down 32.9% year-on-year, with just 139 properties listed this January compared to 207 a year earlier. Canterbury sat in the middle, with 892 new rental listings, up 16.9% on January 2025.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said the data highlights how uneven student markets have become.
“For students heading back to campus, where you study has a big impact on your rental experience,” Williams said. “Wellington renters are spoilt for choice this year, while those moving to Otago will need to be organised and act quickly in a far more competitive market. It’s very much a tale of two cities.”
Rents easing in some regions, holding firm in others
Nationally, the average rent has fallen to $634/week, down 2% year-on-year. In Wellington, students may feel the benefit more acutely: average weekly rents have fallen 8.9% year-on-year to $659/week – still above the national average, but suggesting landlords are sharpening pricing as stock climbs.
In Otago, average weekly rent is down 4.1% to $519/week, while Waikato has slipped marginally to $556/week (down 0.3% year‑on‑year). Auckland remains more resilient, with rents at $686/week, down just 1.8% on January 2025. Canterbury is the outlier among major student hubs, with average weekly rental prices up 1.2% to $584/week.
Williams said these shifts show how supply is driving pricing dynamics, noting that year‑on‑year declines “suggest landlords in some regions are having to be more competitive on price, particularly where supply has lifted.”
These rental trends sit alongside survey evidence of more landlords planning to sell, modest buying intent, rising rent expectations, and persistent cost pressures, despite slightly easier access to credit.
Recent Ministry of Housing and Urban Development pulse surveys back up this picture, showing landlords “shifting towards more immediate returns”, smaller and less frequent rent rises, very low arrears and generally positive landlord–tenant relationships.
Stock building in selected regions
Nationwide rental stock increased 9.8% in January 2026, with 7,830 rental properties available compared to 7,129 a year ago. Hawke’s Bay led the gains, with stock up 115.8% year‑on‑year to 123 properties. Wairarapa climbed 97.3% to 73 properties, while Gisborne rose 56.4% to 61 properties.
“Overall, this is a rental market offering very different experiences depending on where renters are studying or relocating,” Williams said. “For those who have flexibility around location, there are real opportunities emerging, but in tighter markets, preparation and speed remain key. Understanding local conditions has never been more important.”
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
