Here are the implications for future rental rates, tenants, and landlords
January saw a national median weekly rent increase of $10 compared to December, according to the latest Rental Price Index from Trade Me Property.
However, this uptick in rental costs comes alongside a substantial rise in the number of rental properties available, which could potentially lead to a decrease in rental prices in the future.
Gavin Lloyd (pictured above), Trade Me Property’s customer director, commented on the shift, noting that the increased property availability is giving renters more options than before.
This is particularly relevant as a report from Stats NZ revealed that in 2024, 28.4% of non-homeowners were spending more than 40% of their disposable income on rent, with average weekly rent payments climbing to $465.50.
Increased listings pose new challenges for landlords
Trade Me Property recorded a 13% rise in rental listings nationally from December to January, with a notable year-on-year increase of 40%.
Major cities saw significant spikes in new listings: Auckland added 11,107 new rentals (up 13% month-on-month), Wellington 4,030 (up 22%), and Canterbury 2,591 (up 5%).
Lloyd highlighted that this surge in listings is transforming the market into a more competitive arena for landlords.
“With so many rental options available, securing a long-term tenant could be more challenging than in recent times,” Lloyd said. “Affordability is a key concern from tenants who are looking at price along with location and proximity to amenities as key decision points.”
Lloyd advised landlords with long-vacant properties to enhance their offerings through improvements or price adjustments to attract tenants, who are increasingly prioritising affordability, location, and property conditions.
Trade Me Property also recently recorded a significant upturn in residential real estate listings, reaching a five-year peak, coupled with an 11% year-on-year increase in viewer engagement nationwide for January.
Regional rent shifts indicate diverse market reactions
Taranaki witnessed the most significant regional increase in rents, jumping 6% to $620 per week. Wellington rents rose by 3.8% to $675, surpassing Auckland's median of $670. Canterbury experienced a smaller increase of 2.7%, reaching $580.
Conversely, Otago saw a reduction, with rents decreasing by 4% to $600 after a previous surge, Trade Me Property data showed.
Urban renters face increasing costs
The urban lifestyle is becoming pricier for tenants in smaller housing units.
January’s records show that the national median rent for units reached an all-time high of $520 per week, up 4% from the previous month.
In Auckland, however, townhouse rents decreased by 4.1% to $700, while rents for apartments remained stable.
Christchurch and Wellington saw mixed results, with slight adjustments in rental prices for apartments and townhouses.
“For those living in apartments, townhouses, and units, some may be feeling the sting in their wallets this month,” Lloyd said.
