National rental price hits lowest since 2023; regional markets buck the trend

August 2025 - The New Zealand Property Report - Rental

Key Takeaways 

• National average rental price drops to $628, the lowest since September 2023 
• Southland records all-time high average rental price of $509 per week  
• West Coast bucks national trend with 11.2% average rental price increase 

Figures

• New rental listings hit 6,700, up 16.0% year-on-year

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Latest data from realestate.co.nz reveals some subtle and not so subtle rental price increases in the regions, despite New Zealand’s average weekly rental price falling 3.0% from $648/week in August 2024 to $628/week in August 2025. 

Meanwhile, Southland’s average weekly rent hit an all-time high of $509/week (August 2025), up 9.2% from $466/week this time last year.

The West Coast also bucked the national trend, with average rental prices up 11.2% on August last year.

Sarah Wood, CEO of realestate.co.nz, says the data shows how localised the rental market can be.  

“While the national trend suggests a softening in rental prices, Southland and the West Coast are clear reminders that the market doesn’t move in unison. Local supply and demand pressures are driving different outcomes across the regions.” 

Rent in the city: major centres record declining rental prices

All of New Zealand’s major urban centres recorded a decline in average rental prices when compared to 12 months ago. Wellington experienced the largest year-on-year decline, down 11.8%, followed by Otago (down 3.9%), Auckland (down 2.3%), Canterbury (down 2.1%), and Waikato (down 0.6%). 

“These drops may reflect increased rental supply in the cities or tenants negotiating more favourable lease terms, but it's also likely linked to affordability pressures amid broader economic challenges,” says Wood.

New listings surge in key regions 

Nationally, new rental listings rose 16.0% year-on-year, reaching 6,700 in August 2025 compared to 5,775 a year earlier.

Wellington led the charge with a 105.8% increase, more than doubling the number of rental properties newly listed in the capital – from 274 listings in August 2024 to 564 in August 2025. In addition to Wellington, three other regions, Wairarapa (97.1%), Gisborne (82.4%), and Hawke’s Bay (69.2%) all recorded increases exceeding 60%.

Down south, Canterbury also reported a strong surge in listings, with 917 properties listed in August 2025, a 29.0% increase on August last year.

Wood says the increase may signal rising confidence among landlords or a shift in property use. “We may be seeing the impact of properties returning from short-term rentals, or landlords choosing to re-enter the long-term rental market as economic conditions evolve.”

Understanding your region is more important than ever

As the rental market becomes more varied across regions, Wood encourages renters and landlords to lean on local knowledge.  

“Whether you’re renewing a lease, looking for a new tenant, or trying to understand market value, these regional insights are more important than ever. Generalised national trends don’t always reflect the reality on the ground.” 

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For media enquiries, please contact:

Hannah Franklin | hannah@realestate.co.nz

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