National rents fall as tenant choice grows

New Zealand’s rental market continued to shift in favour of tenants in October, with national prices easing and stock levels remaining elevated across much of the country. According to realestate.co.nz, the average weekly rent last month was $628, down 3.2% compared to the same time in 2024.

Realestate.co.nz Spokesperson Vanessa Williams said the decline offered welcome relief for households navigating higher costs elsewhere in the economy. “The fact that average rental prices are down nationally tells us the rental market is going in a different direction from the broader cost-of-living pressure, which is certainly welcome news for tenants,” she said.

On the flip side, the shift is creating new pressure for landlords, she added, which means they may not be able to generate the rental income they would like.

More choice for tenants as listings rise

Supply continued to build in October, with new rental listings up 11.4% year-on-year and total rental listings up 21.2%. 

Ms Williams said this was giving renters more negotiating power. “Renters have plenty of choice right now, which landlords need to keep in mind. Anecdotally, we are hearing some landlords are increasing prices, but if their tenants move out, they may need to reduce the price to secure new tenants.”

Regional differences remain significant

Despite the national fall in average rents, conditions vary sharply by region, with some parts of the country still seeing rental increases. 

“As continues to be the case, regional variation is strong, which makes it particularly important for landlords to understand what’s driving demand locally,” Ms Williams said.

What this means for renters and prospective first home buyers

For renters, softer prices and greater choice make this an ideal time to reassess housing needs, explore new locations or renegotiate existing leases. Lower weekly rent can also free up cash to build a first home deposit – a helpful step for those planning to buy in the next year or two.

For potential first home buyers, the current conditions offer an opportunity to assess neighbourhoods and compare value for money.

Renters looking to take advantage of softer conditions to grow their deposit or explore their buying options are welcome to get in touch, and I’d appreciate an introduction.