The rental market across the country is undergoing a significant shift, with the number of available listings reaching levels we haven't seen since 2014. This surge in rental stock is providing tenants with more choice than ever, and it’s having a noticeable impact on rents and time on market.
National Listings at a Decade High
We’re now seeing rental listings at a 10-year high nationally. The last time supply levels were this elevated was back in 2014. This increase in available rentals is contributing to a more competitive environment for landlords, as tenants are no longer pressured by low supply and can afford to be more selective.
Average Rent Slips Slightly
The national average rent has edged down to $635.00, a modest decrease of $5.00. While this drop may seem minor, it’s reflective of a broader trend—a market that’s no longer accelerating at the rate we’ve become accustomed to in recent years. In a context where rents had been steadily rising, even a small decline is significant.
Wellington Market Cooling Off
Wellington, in particular, is seeing sharper shifts. Rents for units, apartments, and townhouses are falling year-on-year. This segment of the market appears to be bearing the brunt of the increased supply, possibly due to a combination of more stock and a narrowing pool of tenants for higher-density housing.
A Flat Market Requires a Strategic Approach
Overall, the rental market nationally is very flat. There are more listings and greater tenant choice, so properties need to stand out. That means ensuring your rental is well-presented, properly maintained, and priced in line with current demand. Even small improvements can make a big difference in attracting quality tenants quickly.
It’s also important to set realistic rent expectations. While we all want to maximise returns, holding out for a premium rent in a flat market can ultimately cost more in lost income from extended vacancies.
We’re continuing to monitor market trends and will keep you updated as the landscape evolves. In the meantime, a data-driven, flexible approach will put you in the best position to keep your property tenanted and performing.
