Capital leads nationwide rent declines as supply surges and demand dips
Wellington has recorded the largest year-on-year drop in rental prices across New Zealand, according to Trade Me’s June Rental Price Index.
The median weekly rent in the capital fell to $600, down 7.7% or $50 compared to June 2024 – the lowest level since November 2022.
“Wellington hasn’t seen its median weekly rent this low since November 2022, showing just how much the rental market in the region has changed in 2025,” said Trade Me Property Spokesperson Casey Wylde (pictured).
Wylde attributed the decline to a significant shift in market fundamentals.
“This is being driven by your simple supply-demand equation pushing prices down – Wellington saw a 34% annual increase in rental stock come to market in June, coupled with a 16% annual drop in demand,” she said.
National rents continue downward trend
Across New Zealand, renters are experiencing some relief.
The national median weekly rent dropped to $620 in June, down $20 since January. After peaking at $650 in May 2023, rents have steadily fallen, dipping from $635 in March to $630 in April, holding steady in May, and falling again in June.
The June 2025 figure represents a 3.9% annual decline, driven by a 20% rise in rental supply and an 18% drop in demand year-on-year.
“The easing of rental prices, coupled with increased listings and less competition, is creating a more favourable environment for renters, offering them more choice and potentially better negotiating power,” Wylde said.
Realestate.co.nz reported similar trends, with the national average rent dropping to $636 – the second consecutive monthly fall – as listings rose 15.3% year-on-year.
South Island bucks the trend with rent rises
While Wellington and other major centres are seeing relief, some South Island regions are heading in the opposite direction. Southland recorded the highest annual rent increase, up 6.7% to $480, while Otago followed with a 3.4% rise to $600.
Realestate.co.nz’s figures showed even sharper gains: Southland average rents hit a record $489, up 6.1%, and Otago jumped 8% to $616.
Wellington rent falls span all property types
The capital’s rent declines extended across all property sizes and dwelling types in June:
- Large homes (5+ bedrooms): down 9.1% to $900
- Three to four-bedroom homes: down 6.7% to $700
- One to two-bedroom homes: down 8.3% to $550
Wellington’s urban dwellings also took a hit, with an overall 7.6% decline:
- Apartments: down 9.3% to $535
- Townhouses: down 4.4% to $650
- Units: steady at $520
Other main centres like Auckland and Christchurch also reported rental declines across multiple property types, reflecting a broader national cooling in the rental market.
Meanwhile, survey data from Crockers and Tony Alexander showed landlords are increasingly struggling to secure tenants, with a record net 40% finding it difficult – up from a net 25% saying it was easy just 14 months ago.
