Tenants gain leverage as rental supply surges nationwide
Wellington’s rental market continues to soften, with the median weekly rent falling 7% year-on-year to $595 in September, according to the latest Trade Me Rental Price Index.
This marks the sixth consecutive month of declines, with rents in the capital down $80 since January.
Trade Me Property spokesperson Casey Wylde (pictured) said much of the drop was being driven by suburbs outside the city centre.
“It’s interesting to look beyond the regional average and see the drivers of this shift,” Wylde said. “The softening in Pōneke is clearly being led by the outer zones, with significant year-on-year drops in Lower Hutt (-7% to $595), Upper Hutt (-8.5% to $595), and Porirua (-9.4% to $630).”
City rents now cheaper than outer suburbs
Wylde said the decline has created an unusual dynamic for renters.
“Rents in Wellington City itself have also dropped by 8.5 per cent to an average of $595, which means it’s now cheaper to rent in the city than in some of the family areas like Kāpiti or Porirua, which are sitting around $630 a week.”
This reversal of the traditional pricing gap suggests tenants may now find better value closer to the CBD – a rare situation for Wellington’s typically tight rental market.
More listings put pressure on prices
Nationally, the median weekly rent remained steady at $620 in September, but this represents a 1.6% decline year-on-year.
“The nationwide drop is consistent with an overall increase in rental properties becoming available,” Wylde said. “We have seen a 6.3% year-on-year increase in new listings nationally, which is putting downward pressure on prices.”
Trade Me reported that overall national demand was down 1% compared to a year earlier, though this figure masks some strong regional differences.
“While demand is down overall by one per cent, we’re seeing strong pockets of interest emerge,” Wylde said. “For instance, Hawke’s Bay saw a massive 28% jump in interest in September, showing that while some regions are cooling, others are heating up – especially as we head into the warmer months.”
With supply rising faster than demand, the balance of power is shifting towards tenants. Wylde noted that seasonal activity is also shaping the current market.
“As we head into spring, tenants start shaking off the winter chill and thinking about moving,” the Trade Me spokesperson said. “It’s a natural time for people to look for a change, which means we often see a bit of extra activity and competition picking up as the weather improves.”
Christchurch bucks the trend
While Northland (-6.5%), Marlborough (-3.4%), and Hawke’s Bay (-3.1%) all recorded notable rent declines alongside Wellington, Christchurch stood out as the only major centre to post an increase.
Canterbury’s median rent rose 1.8% year-on-year, making it the sole region among Trade Me’s 15 monitored areas to record growth compared to September 2024.
Auckland’s median rent dipped 1.5% to $660, underscoring a nationwide softening trend as rental supply rises and affordability pressures persist.
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