Renters could be $700/year better-off with decade-high rental stock

April 2025 - Supply of rental properties the highest for any April since 2016 

Key Takeaways 

• Weekly rent softens by an average of $14/week nationally  
• Cost of living crisis keeps would-be renters at home while investors retain properties 

Figures

• National average rental $640 per week - down $14 year-on-year
• New listings hit 5,686 - up 24.1% year-on-year

Renters have more money in their pocket and more properties to choose from as latest data from realestate.co.nz shows the supply of rental properties in New Zealand reaches the highest level for any April in almost a decade. 

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April abundance: market awash with rentals 

The total number of new rental listings on the market last month was 5,868, up 24.1% year-on-year from 4,729. But we need to look back as far as April 2016 (6,836) to see numbers that can match the current level of supply. 

Regions leading the charge with the greatest number of new listings are, to be expected, New Zealand’s big three: Auckland (2,375, up 8.6% year-on-year), Canterbury (704, up 39.4% year-on-year), and Wellington (691, up 196.6% year-on-year).  

Vanessa Williams, spokesperson for realestate.co.nz, says three key trends over the past 18 months have contributed to this rental market: 

• Short to long-term rentals: “The number of holiday homes and Airbnbs that are being converted back from short-term rentals into long-term rentals.” 
• Cost of living crisis: “When we look at our typical rental demographic (those aged 18-25), they’re doing one of two things: staying at home with their parents because of the cost of living or departing New Zealand shores and moving overseas.” 
• Investors holding tight: “A slower sales market over the last 2.5 years has seen investors holding onto their properties.” 

Renters reap benefits as rates reduce 

Further good news for renters is the softening in rental price, with the national average down by $14 per week year-on-year. The capital city had one of the highest falls in rental prices, with a year-on-year reduction of 7.2% or $50 per week ($647/week in April 2025 compared to $697/week in April 2024). Subsequent rate falls occurred in the Central North Island, down 6.9% on April last year, and Taranaki, down 5.7% year-on-year. 

Williams says $14 extra in a tenant’s pocket per week over a 52-week period can result in a saving upwards of $700.  

“That’s a nice three-seater sofa for the flat or a weekend away. In today’s current economic climate, $700 can go a long way.”    

Central Otago and Lakes bucks the trend 

As to be expected there’s always a region that bucks the trend. Central Otago and Lakes reported an all-time high with an average rental price of $870 per week in April, a 3.0% increase year-on-year. 

Although the region’s 148 new listings reported in April was a 22.1% drop from the 190 listings in March, the region’s April numbers reflect a 35.8% year-on-year increase. 

“Central Otago and Lakes’ rental activity corresponds with our sales property data, which confirms the region’s reputation as one of the most highly valued markets in the country,” says Williams. “It’s not surprising to see this region continue to command top dollar with its beautiful homes, attractive lifestyle, and strong tourist market.”  

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For media enquiries, please contact:

Hannah Franklin | hannah@realestate.co.nz

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