Central Otago and Lakes buck rent drop trend

Otago Daily Times

09-05-2025

A renters' advocate says tenants are still paying too much rent, despite an increased supply of rental properties driving down costs in some parts of the country.
April data from Realestate.co.nz showed a surge in rental listings, resulting in lower average rents - particularly in major cities.
Wellington's average rental price was down 7.2 percent year-on-year to $647 and Auckland's down 3.3 percent to $702. The national average was down $14 a week.
Central Otago and Lakes went against the trend, with an average rental price of $870 per week in April, a 3 percent increase year-on-year and an all-time high.
But Renters United president Zac Thomas said the data also showed that in half of New Zealand's regions, the cost of rent has either stayed the same or increased compared with this time last year.
"The reality, what we see at least, is that New Zealand is one of the worst places in the developed world to be a renter," he told RNZ.
"Rents have gone up 25 percent since Covid, and renters now have less housing security thanks to the government bringing back no-cause evictions."
He said any money tenants had left over from reduced rents would go towards paying for essentials such as food and heating.
Realestate.co.nz spokesperson Vanessa Wiliams said there were a few reasons for the increase in listings including:
Short-term rentals now being offered for longer terms, with fewer people travelling
Young people staying at home longer with their parents because of the cost of living, or moving overseas
A slower sales market prompting investors to hold on to their properties.
Thomas advised tenants to lock in any rent reductions with a 12-month contract.
"Make sure you do your market research in the area in which you're renting before you go and move, because you might actually end up paying more than you are if you have been a solid long-term renter, and your landlord has recognised that and keep your rent pretty consistent."