South Island renters feel squeeze as Wellington costs ease
Wellington tenants are emerging as some of the biggest winners in New Zealand’s cooling rental market, with new Trade Me figures showing a sharp drop in typical weekly rents across the capital.
According to the latest Trade Me Rental Price Index, the median weekly rent in the Wellington region fell 7.4% in January compared with a year earlier, now sitting at $625. By contrast, the national median remained flat at $620 for the second consecutive month, down 3.1% or $20 a week year-on-year.
Trade Me Property spokesperson Casey Wylde (pictured) said the turnaround in Pōneke is translating into meaningful savings for households.
“Those in Pōneke are currently $50 better off each week than they were this time last year, a fairly significant and no doubt welcome saving for tenants,” Wylde said. “If we look specifically at property size, it’s clear to see tenants in Wellington are benefiting across the board, which is in stark contrast to Auckland and Christchurch.”
South Island tenants feel rising pressure
In Auckland, the median rent edged down a more modest 1.5% year-on-year to $660, while Canterbury renters are paying about $5 less than they were 12 months ago.
Conditions are much tougher further south. Wylde noted that “while much of the country has seen rent fall over this timeframe, the lower South Island has seen solid growth, particularly Otago (+3.3%) and Southland (+2.1%) which is putting pressure on tenants in these regions.
“Renters in Otago, especially Dunedin and the Queenstown Lakes district will be feeling the pinch with demand outstripping supply making for a competitive landscape.”
That regional split is playing out as investor sentiment softens. New Zealand landlords are anxious about rising interest rates and tougher tenant laws, even as rent hike plans remain widespread in a renter‑friendly market. Many owners remain focused on cost and policy risks, even as pockets of the country clearly tilt in favour of tenants.
Summer surge balances supply and demand
Wylde said “January is always the busiest time of year for the rental market, and 2026 was no exception,” with tenant enquiries jumping 41% from December.
“Nationally, we saw tenant demand spike by 41% compared with December, but this was met with a 45% surge in the number of properties for rent. This balance between supply and demand is a major contributor to the current pricing stability,” he said.
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