The rental market in Aotearoa is finally shifting after a long period of rising prices. According to TradeMe data, rental prices across New Zealand began to drop in June and July, marking the first significant decrease in almost two years. This downward trend has continued into September, with more properties available and tenants benefiting from the increased supply.
The rent drop is largely down to an oversupply of rental properties available in the market. Auckland has experienced a 30% increase in rental listings compared to last year. This surge in available housing options has reduced the urgency for renters, who now have more choices, putting less pressure on prices.
What Does This Mean for Tenants and Landlords?
- For Tenants: Now is a great time to explore the rental market. With more properties available, you have a better chance of finding a good deal or negotiating favourable terms.
- For Landlords: It’s important to remain competitive. With a higher supply of properties, pricing your rental appropriately is essential to attract tenants and avoid vacancies(
Looking Ahead
While rents have been dropping over the past few months, the market may plateau as we approach summer, when demand typically picks up. For now, however, tenants in Auckland and across the country have more leverage, and landlords must stay flexible to navigate this evolving market.
At Angel Property Managers, we’re here to help both tenants and landlords during this time of change. Whether you’re looking for your next rental or need guidance on managing your property, get in touch with us today!