The New Zealand rental market has shifted, and the balance of power now sits firmly with tenants. With more properties on the market and rents easing across many regions, we need to be proactive to avoid longer vacancy periods and reduced returns.
The National Picture
According to Trade Me Property, rental listings in March 2025 were up 41% compared to March 2024, reaching the highest level observed since early 2014. Rental listings across New Zealand are up 13% year-on-year (July 2025), while the average national rent sits at $620 per week—around 3% lower than this time last year. Demand has softened too, with tenant enquiries down nearly 20% compared to 2024.
This means landlords are competing in a renter’s market, where price and presentation make the difference between a quick lease and weeks of lost income.
Regional Snapshot
Palmerston North remains a benchmark for the wider Manawatū region, with average rents of $585 per week and a typical turnaround of about 3-4 weeks to secure a tenant.
Rangitīkei region for 2025 stands at approximately $470 average rent per week, which is lower than the national average of $574.
Horowhenua currently has an average rent of $490 per week with a typical turnaround of over 4 weeks to secure new tenants. Levin performs a bit faster in letting properties.
Kāpiti Coast shows more modest but steady activity. Houses and townhouses are attracting healthy rent levels of around $650 per week but still require patience, with an average of 8-10 weeks on the market.
What This Means for Landlords
In a market where tenants have choice, you need to think differently about how you position your properties. Sticking to high rent expectations or overlooking compliance could mean a property stays vacant longer while others get snapped up.
Four Ways to Stay Competitive
- Reassess your rent expectations
Even a small weekly reduction can make your property stand out. A vacant home costs more in the long run than adjusting your rent to meet the market. - Widen your tenant pool
Allowing pets or offering shorter-term leases can help you capture tenants who might otherwise look elsewhere. - Invest in upgrading
Heating, new carpet, new appliances, painting rooms and basic maintenance go a long way. Not only do these improvements help with adding value, but they also increase tenant appeal. - Market presentation matters
Quality photos, clear descriptions, and highlighting unique features (like outdoor space or proximity to transport) can make a real difference online.
Don’t Forget Healthy Homes Compliance
As of 1 July 2025, every rental property in New Zealand must meet the Healthy Homes Standards. This includes requirements for insulation, fixed heating, ventilation, moisture ingress, and draught stopping.
The consequences of failing to comply are significant:
- Fines up to $7,200 per breach
- Possible Tenancy Tribunal action
- Increased monitoring from MBIE’s Compliance & Investigations Team
Staying compliant not only protects you legally but also ensures your property remains competitive and attractive to tenants who are more aware of their rights than ever before.
Final words
The rental market is no longer one where landlords can set the terms and expect tenants to line up. Supply is increasing, rents are easing, and tenants have more options.
To stay ahead, landlords must:
- Price strategically
- Be flexible in lease options
- Keep properties Healthy Homes compliant
- Invest in small but meaningful improvements
By taking these steps, landlords can minimise vacancy times, secure reliable tenants, and protect their investments in what has become a true renter’s market.
