Recent data from Tenancy Services reveals a slight softening in New Zealand’s residential rental market during July, with the national median rent remaining unchanged at $600 per week.
This figure has held steady since December 2023, apart from a brief increase in January to $608 before returning to $600 in February.
However, rents generally softened at the regional level.
9 out of 16 New Zealand regions experienced a decline in median rents compared to June. The reductions varied, with Wellington seeing a decrease of $5 per week, while regions like Gisborne, Hawke’s Bay, and Tasman reported declines of up to $20 per week.
Conversely, five regions saw rent increases, with the West Coast leading at $30 per week.
Despite these fluctuations, the total number of properties tenanted in July was 12,363—nearly identical to the previous year (12,354). This indicates a balanced supply and demand for rental properties.
The slight decrease in rents, coupled with a stable number of tenancies, suggests that while the rental market remains competitive, tenants may find more favourable conditions in the coming months. This shift could prompt landlords to reconsider their pricing strategies, particularly if the trend towards lower rents persists.
As the market adjusts, landlords may need to adapt to changing dynamics, including increased competition from new landlords entering the market. The ongoing economic pressures, including inflation and rising interest rates, could further influence rental prices and availability.
