National rental market flatlines, but south still has a heartbeat
Tuesday, 21 July 2026
The national rental market may be flatlining this winter, but there are signs of a strong heartbeat in the South Island, where rents continue to climb despite prices stalling across the rest of the country.
According to Trade Me's latest Rental Price Index, the national median weekly rent remained unchanged at $620 in June, both month-on-month and compared with a year ago.
But beneath the national average, a widening north-south divide has emerged.
Trade Me Property’s Casey Wylde said the figures suggested the rental market had found its floor after months of gradual cooling.
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'After a period where rents were slowly tracking downward from their 2024 peaks, the market has hit a complete plateau,' Wylde said.
'For tenants, a flat annual change means some welcome predictability, but with listing views and watchlists remaining high, the competition for good properties hasn't gone away.'
While the country’s largest rental markets cooled slightly, several South Island regions continued to post strong gains, echoing a trend already evident in the housing market where southern regions have generally proved more resilient than many of their northern counterparts.
Auckland's median weekly rent fell 1.5% over the year to $660, while Wellington slipped 0.8% to $595. The Bay of Plenty also eased 1.5% to $650.
In contrast, Otago led the country with an 8.3% annual increase, lifting its median weekly rent to $650. Nelson/Tasman followed with a 7% rise to $610, while Canterbury climbed 5.5% to $580.
The increase pushed Otago into a tie with the Bay of Plenty as New Zealand's second most expensive rental region, behind only Auckland.
'While Tāmaki Makaurau and Pōneke tenants might be seeing a touch of relief or flat conditions, it's a completely different story down south,' Wylde said.
'Otago, Nelson and Canterbury are bucking the national trend, driven by strong local demand and tight tracking of available stock. Otago has now caught up to the Bay of Plenty with a median rent of $650, putting it just behind Auckland as one of the most expensive regions in the country.'
Gisborne saw a -5.9% drop while there was no change in price on the West Coast.
Despite the national rental market plateauing, demand from tenants remained strong.
New rental listings were down 2% compared with May but up 4% on June last year.
While search activity followed its usual seasonal pattern, dropping 11% from May, searches were still 15% higher than they were a year ago, suggesting more New Zealanders are actively looking for rental properties than at the same time in 2025.
'Renter demand is proving remarkably resilient,' Wylde said.
'Even though we expect a bit of a mid-winter slowdown in monthly activity, the year-on-year search volumes show a clear picture – there are more people actively looking for a rental property on Trade Me than there were this time last year.
She said landlords were bringing slightly more properties to the market, which is helping to keep that supply-demand equation balanced enough to hold prices flat.