If your property has been sitting vacant longer than expected, you’re not alone. Across New Zealand, we’re seeing a noticeable slowdown in the rental market, and it’s not due to poor management or lack of effort. The reality is that market conditions have shifted, and landlords across the country are being forced to adjust.
It’s a renter’s market right now, and rents are falling
According to realestate.co.nz, the national average rent dropped to $633 per week in May, the lowest it’s been in over 18 months. That’s a $27 drop from this time last year, saving tenants around $1,400 annually.
Rents have fallen in 15 out of 19 regions, with the biggest drops in Coromandel and Wellington.
Meanwhile, the number of available rentals is surging. Over 7,000 new listings hit the market in May, the highest level in nearly a decade. In some regions, listing numbers have nearly doubled compared to last year. That’s a huge amount of choice for tenants, which means your property competes in a much more crowded market.
This is no longer the tight rental market we saw during and after COVID. With high migration out of New Zealand and lower immigration coming in, there are simply fewer people looking for rentals. Supply is high.
Demand is down. That means the only way to get your property tenanted quickly is to price it competitively.
Your property might be sitting because the rent is too high
This is the conversation no property owner wants to have, but it’s one we can’t avoid. We’re seeing good properties, in good condition, sitting on the market because the rent is just too high for current conditions.
Tenants have options now. If they can find a warmer, better-located, or better-priced home down the road, they will.
At Angel Property Managers, we’re doing everything we can: targeted marketing, strong communication, professional listings, and responsive viewings. But we cannot rent an overpriced property in a soft market. Reducing rent isn’t a failure; it’s a necessary adjustment in response to real-time market conditions.
Landlords: Here’s what we recommend
- Be open to rent reductions. Even a small drop can dramatically increase tenant interest.
- Listen to tenant feedback. If we’re getting consistent responses about price or condition, it’s worth taking seriously.
- Consider small upgrades. Better heating, ventilation, or presentation can make a big difference in a competitive market.
- Act quickly. A week or two of delay adds up fast; in most cases, adjusting the price now is more cost-effective than holding out for another month.
A quick look at compliance
As of 1 July 2025, all private rentals must be fully compliant with the Healthy Homes Standards.
This includes insulation, heating, ventilation, moisture control, and draught-stopping. Non-compliance can now result in enforcement action or Tribunal penalties, especially if a tenant raises concerns.
This also applies to new tenancies. If your property doesn’t meet the standards, it cannot be rented out legally.
We understand that extended vacancies are frustrating. But it’s important to know that these challenges are happening nationwide, and not because your property manager isn’t doing their job.
This is a tough winter market, and the only way through it is to respond to what the market is telling us. We’re here to help you do exactly that.
Need tailored advice?
If you’re unsure how your property stacks in today’s rental market or want to talk through your options, get in touch with the Angel team, we’re here to support you.