National rents fall as stock levels rise

New Zealand’s rental market has shifted further in favour of tenants, with both new and total listings rising sharply in September. 

The number of new rental listings on realestate.co.nz in September was 18.1% higher than the same month last year, while total listings were 23.6% higher.

Realestate.co.nz Spokesperson Vanessa Williams said: “There’s a lot of choice on the market at present, which makes it a great time for anyone looking to upgrade their rental home or explore a new neighbourhood they might be thinking about purchasing in down the track.”

Higher supply has meant lower demand, with the average national rent in September falling to $624 per week, down 3.1% from $644 the year before. 

“This market of choice comes with a drop in average rental prices, making it an opportune time for those wanting to take the first step to first home ownership to add to their deposit. For long-term renters, this drop gives them more options to secure a property that reflects their lifestyle,” Ms Williams said.

Tenants gain more negotiating power

Ms Williams said that many property investors were holding onto their properties for longer, which had kept more homes in the rental pool.

“This has given tenants greater negotiating power and the opportunity to add to their savings or first home deposit with money that would previously have gone into rent. That $20 difference can be put aside or enjoyed, whether that is in the form of weekly coffees or a Netflix subscription,” she said.

Regional differences remain

While most parts of the country have seen easing rents, some regions have bucked the trend – for example, rents have increased 10.4% in the Central North Island, 5.3% in Nelson & Bays and 3.4% in Waikato.

“What we’re seeing is a reminder that New Zealand’s rental market isn’t moving in one direction,” Ms Williams said.

“Factors like regional growth, employment opportunities and lifestyle appeal are keeping rents buoyant in certain areas, even as they ease elsewhere.”