Wellington’s rental market continued its downward slide in May, with the median weekly rent dropping to $620—the lowest level seen in over 18 months, according to Trade Me’s latest Rental Price Index.
Wellington Rent Trends Reflect Supply Surge
“The drop in rents is certainly good news for those in the market for a new rental, however those locked into fixed term tenancies may not benefit from the current market dynamics until it’s time to renew their lease,” said Trade Me Property spokesperson Casey Wylde.
The shift in rental prices is being driven by an oversupply of available listings. Rental supply in Wellington climbed 6% from April and surged 41% in May, compared to May last year. Meanwhile, demand rose just 10% month-on-month and is still down 13% year-on-year.
“If we look at where rental supply for the region was this time last year, the number of listings onsite is up a significant 41 per cent, while demand is down 13 per cent. With more options on the market, it comes as no surprise that rents have cooled in the Capital,” said Wylde.
Prices have begun to ease, with more listings outpacing tenant interest, offering some relief in what has long been one of the country’s tightest rental markets.
Regional Rents Show Mixed Trends
While Wellington renters are enjoying falling prices, the same cannot be said for every region. Marlborough rents dropped 4.2%, and Hawke’s Bay fell by 3.0% over the same period. However, Southland saw rents rise by 3.1%, reaching a new median high of $495 per week, while the West Coast also hit a record at $450.
Wylde noted that smaller markets often show sharper fluctuations due to lower stock levels and the size of properties available.
“With a smaller number of properties to rent in these regions, movement in the median rental price can fluctuate more so than those regions where there’s greater supply. The property types coming up for rent also tend to be larger which naturally command higher rents,” she explained.
Other regions with rising rents included Otago (up 4.2%) and Bay of Plenty (up 1.5%).
National Market Holds Steady
The median weekly rent remained flat at $630 on a national level, holding steady after two months of slight declines. The stabilisation points to a more balanced market overall, although regional disparities continue.
The 3–4 bedroom homes dropped 6.7% to $700, while 1–2 bedroom homes fell 4.3% to $550 in Wellington.
Auckland saw a 2.2% overall decrease, with five-bedroom or larger homes dropping a significant 9.1% to $1,000 per week. Christchurch also experienced a 1.8% overall decline. Rental conditions in Wellington have begun to favour tenants, with falling prices offering some relief for those starting new leases, despite national rents holding firm.