Rents fall nationally for the first time in a decade
Friday, 23 January 2026
New Zealand’s rental market has recorded its first year-on-year drop in average rents in a decade, signalling a shift after years of sustained growth — even as demand begins to lift heading into summer.
New data from realestate.co.nz showed the national average weekly rent fell 1.8% in 2025 compared to 2024, dropping from $638 to $627 a week. It is the first annual decline since 2015.
Realestate.co.nz’s Vanessa Williams said the fall reflected a more balanced rental market, with increased supply giving tenants more choice.
“Over the past 10 years, the national average weekly rental price has shown consistent growth, from an average of $424 in 2015 to $638 in 2024. To see weekly rents fall 1.8% between 2024 and 2025 is a clear signal the market has shifted,” said Williams.
She said they were seeing the effects of sustained rental supply meeting softer demand.
“Rental prices will need to remain realistic to be competitive.”
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Among the main centres, Wellington recorded the largest annual drop, with average rents falling 9.7% from $693 in 2024 to $626 in 2025. Auckland rents declined 2.5% over the same period to $684 a week, while Canterbury bucked the trend with a 3.1% increase to $578.
Since 2015, the national average weekly rental price has increased by 47.8%, outpacing general inflation at 35.3% over the same period.
Across the country, average weekly rents fell in eight of the 19 regions.
Gisborne dominated rental price growth with the average weekly rental more than doubling in the last decade, from $290 in 2015 to $641 in 2025, a 121.2% increase.
Southland and Manawatū/Whanganui were the only other two regions to double their average weekly rental prices. Southland increasing by 112.6% from $225 in 2015 to $478 in 2025 .
Manawatu/Whanganui’s average weekly rental price increased 112.2% from $252 in 2015 to $536 in 2025.
Despite the annual decline, more recent figures suggest rental prices have stabilised rather than continued to fall.
Trade Me Property’s December rental price index showed the national median weekly rent held steady at $620 for the second consecutive month. While unchanged month-on-month, rents were down 1.6% compared with December last year — about $10 a week less for tenants.
Trade Me Property’s Casey Wylde said the market had ended the year quietly on price, but with rising interest from renters.
“After some movement earlier in the year, the national median rent settled at the $620 mark for the second month in a row. While it’s great news for renters' wallets that prices haven’t spiked, we’re seeing a lot of interest behind the scenes.”
Search activity for rentals rose 8% year-on-year in December, with strong demand in summer hotspots including Gisborne up 51% with Hawke’s Bay rose by 28% and Taranaki by 29%.
At the same time, new rental listings fell 23% compared with November, though they remained 4% higher than a year earlier.
Regionally, Auckland and the Bay of Plenty remained the most expensive places to rent, both with median weekly rents of $650. Wellington’s median rent held steady at $600 in December, but was $50 lower than the same time last year.
“The biggest wins for tenants in Pōneke are in the smaller-to-mid-sized homes. We’ve seen rents for 1–2 bedroom properties fall by over 5% annually, while 3-4 bedroom homes have dropped by nearly 7%. For families and young professionals in the capital, the cost of living in a rental’s now back to levels we haven’t seen in years,” Wylde said.
Williams said while falling rents could benefit those entering the market, relief would not be immediate for all tenants.
“Those renewing leases or moving may find better deals, but for renters already locked into contracts, the impact will take longer to filter through,” she said.