How is the NZ rental market going?

The rental market is constantly changing. Sometimes it’s up, and sometimes it’s down.

That's true for NZ (as a whole) and each specific region.

Property investors want to know: “What’s going on in the rental market right now?”

In this article, you'll learn:

• What's happening with rents nationally?
• What’s the average rental in New Zealand?
• How much do rents increase in NZ?
• What our property managers are seeing on the ground in Auckland and Christchurch

This is all to keep you informed about what's going on in the rental market.

More from Opes:

• How do I figure out what the market rent of my property is? (Article)
• How much do rents increase in NZ? (Article)
• How should I increase the rent of my investment property? (Article)

How are rents changing?

Rents around the country don't all go up at the same rate. Sometimes Auckland rents will go up faster than those in Wellington. 

Sometimes Christchurch's rents will be calm, while Dunedin is booming. 

Here are the rents for every region in New Zealand, along with how fast they are going up (or down).

This table automatically updates every month as new data is released.

The property manager's perspective

As part of my rental market update, I like to hear what property managers see. Here’s the latest from our team at Opes Property Management (last updated July 2024) –

Christchurch – Tom Greene

Christchurch’s rental market changes week-to-week.

Overall, we have seen an increase in supply. This is similar to the rest of the country.

But I've also seen a larger-than-usual drop in demand for winter.

The cause for this is still uncertain.

Sometimes, it can come down to particularly cool weather, with tenants staying indoors.

But it has picked up slightly now, and things got a bit warmer. This is a good example of how quickly things can change.

Properties are still renting. But rents are flat compared to the start of the year.

We aren’t seeing large decreases. Investors aren’t dropping their rents.

However, rental listings will sit on the market if the rent is set too high. So, I don’t recommend trying to get that extra $10-$20 as you will lose it in vacancy.

Auckland – Leah Cockroft

I’m seeing a few things happening. Firstly, the number of rental listings on the market (the rental stock) is the highest it's been since 2018.

Auckland’s rental stock has risen by 40% in the last 3 months (REINZ). This will soften rents as there are a higher number of properties looking for tenants.

However, my advice to investors is to keep rents at the market rate and allow for a longer vacancy. Don’t drop your rent just to get a tenant in.

Over the year, you’ll be better off. But you might need to get through a few weeks without rent.

I’m also seeing a few new builds coming up for completion. This comes with its own complications. Let's say you bought a New Build back in early 2023. As part of that, they would have gotten a rental appraisal.

Back then, the Auckland Floods wreaked havoc on the rental market.. Both owner-occupiers and tenants had to move.

There were lots of people looking for rentals, but there was not much supply. This pushed up rents.

Now we’re in a more normal market. So, if you got a rental appraisal back in January - August 2023, the rent may be lower today than what the rental appraisal says.

It can be a drop of up to $100 a week.