According to rental data for 2025, the national average weekly rent fell by 1.8 per cent compared with the year before. In Wellington, renters saw the biggest shift, with average rents dropping nearly 10 per cent, while Auckland rents declined by 2.5 per cent. For households in these centres, that can translate into modest weekly savings or slightly more negotiating power when renewing a lease.
However, from a household perspective, the bigger picture matters more. Over the past decade, average weekly rent has risen by nearly 50 per cent nationwide, far outpacing wage growth for many workers. What households are paying today is still dramatically higher than what they paid ten years ago. In real terms, rents have grown faster than inflation, meaning housing has steadily consumed a larger share of take-home pay.
Several forces are behind the recent softening. More rental properties have come onto the market after would-be sellers found house prices were not rising as hoped. At the same time, demand has eased as many renters have left New Zealand for opportunities overseas. For renters still in the market, this has slightly reduced competition.
Yet for most households, the relief is limited. Official statistics show only a very small annual decline in rents on new listings, and little change overall. Day-to-day costs such as food, power, insurance, and transport remain high, and wage increases have struggled to keep pace with inflation. Against that backdrop, a small fall in rent does not feel like a turning point.
Regional differences also shape the experience. In places like Gisborne, Southland, and Manawatu-Whanganui, rents have doubled over the decade. Households in these regions may see little benefit from national averages if local prices remain high and rental options are limited.
For renters, the current market may offer a rare opportunity to reassess what they are paying. With more listings available, some households may feel able to negotiate or consider moving to secure a better value. Still, moving costs, uncertainty, and the lack of long-term security in renting remain major concerns.
From the average household’s point of view, the data suggests the rental market has cooled slightly, but it is far from affordable. After ten years of steep increases, a small drop feels less like a win and more like a brief pause in a long and difficult climb.
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