Weekly rents in the capital have fallen 8.0% since February 2024 to $673*, potentially saving renters $3,016 annually.
Auckland has also experienced a decrease, with rents down 4.1% to $689 per week, equating to savings of $1,560 per year.
Meanwhile, Canterbury’s rental market has remained stable, with prices down just 0.4% to $586 per week, translating to minimal savings of $104 annually.
Vanessa Williams, spokesperson for realestate.co.nz, says that while falling rents indicate a more tenant-friendly market in Auckland and Wellington, not all renters will benefit immediately.
“While lower average rents indicate a more tenant-friendly market in Auckland and Wellington, renters may not immediately experience these savings.
Those on fixed-term leases may still be paying higher rents, so new renters or those renewing agreements are more likely to benefit.”
Despite stable prices, Canterbury renters allocate a slightly higher portion of their income to rent compared to those in Auckland and Wellington.
Using Stats NZ’s June 2024 household income data as a benchmark, renters in February 2025 are estimated to spend 29.7% of their disposable income on rent in Auckland, 29.8% in Wellington, and 30.6% in Canterbury.
Ms Williams warns that while rent affordability is often measured against the ‘30% of income’ rule, it does not account for other financial pressures such as inflation and rising living costs.
“Affordability isn’t just about rent; it’s about income and other living costs, including inflation, rising grocery and utility prices, and whether wages have kept pace with overall expenses.”
Making Cents podcast host Frances Cook says the rental price drops will be a welcome relief but acknowledges that affordability remains a challenge.
“This will be welcome news to many renters, as housing is one of the biggest costs in the average budget. The standard advice is to try not to spend more than 30% of your income on housing, but frankly, that’s been really difficult for a while now.
“For many people, it was nudging up past 50% of their income, going towards just keeping a roof over their heads. If you can snag one of these cheaper properties, and then start working on a pay rise, that’s a double hit that would help a lot of people.”
*All prices in New Zealand Dollars
