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As of September 2025, the average weekly rent in New Zealand sits between $574 and $640 nationally, with significant regional variations that can impact your investment decisions. Auckland leads at $675 per week, while provincial areas like Southland offer more affordable options at $489 weekly.
The New Zealand rental market presents distinct opportunities across different property types and regions, with apartments generally commanding lower rents than townhouses and standalone houses. Regional centres are showing stronger rental yields compared to main urban areas, making them increasingly attractive for property investors seeking better returns.
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New Zealand's rental market in 2025 shows Auckland commanding the highest weekly rents at $675, followed by Wellington at $680, while provincial areas like Southland offer more affordable options at $489 per week.
Rental yields nationally average 4.52%, with provincial regions significantly outperforming main centres, particularly Otago and Southland achieving yields up to 5.7%.
| Region | Average Weekly Rent | Rental Yield |
|---|---|---|
| Auckland | $675 | 3.5-4.0% |
| Wellington | $680 | 3.8-4.2% |
| Christchurch | $560 | 4.5-5.0% |
| Dunedin/Otago | $616-$709 | 5.5-5.7% |
| Southland | $489 | 5.6-5.8% |
| Bay of Plenty | $650 | 4.8-5.2% |
| National Average | $574-$640 | 4.52% |
What's the current average rent across different regions in New Zealand?
As of September 2025, the national average weekly rent in New Zealand ranges between $574 and $640, representing a 2.5% increase over the past year.
Auckland dominates the rental market with the highest weekly rents at $675 overall, while Wellington follows closely at $680 per week. Christchurch offers more moderate rental costs at $560 for urban properties, making it an attractive option for both tenants and investors seeking better value.
Provincial areas present significantly more affordable rental options, with Southland recording the lowest average weekly rent at $489 in June 2025. Bay of Plenty commands $650 per week, while Otago varies considerably from $616 to $709 depending on the specific location within the region.
The substantial regional variation reflects local economic conditions, employment opportunities, and housing supply constraints. Auckland and Wellington's premium pricing stems from their status as major economic centres, while provincial areas offer better affordability but potentially limited rental demand growth.
Hamilton has experienced a surge in rental listings, though specific pricing data remains unavailable, suggesting increased supply that may moderate rental growth in this region.
How do rents vary by property type, like apartments, townhouses, and standalone houses?
| Property Type | Auckland ($/week) | Wellington ($/week) | Christchurch ($/week) |
|---|---|---|---|
| Apartments | $575 | $595 | $515 |
| Townhouses/Urban Houses | $600 | $675 | $530 |
| Standalone Houses | $720 (North Shore) | $680 | $560 |
| Units | Not specified | $540 | Not specified |
| Small Properties | Not specified | Not specified | $515 |
Across all major centres in New Zealand, apartments consistently command the lowest rental rates, followed by townhouses, with standalone houses achieving the highest weekly rents.
In Auckland, the rental hierarchy shows apartments at $575 weekly, urban houses (including townhouses) at $600, and standalone houses reaching $720 in premium areas like North Shore. Wellington displays a similar pattern with apartments at $595, units at $540, townhouses at $675, and the overall average at $680.
Christchurch offers the most affordable rental market across all property types, with apartments starting at $515 weekly, townhouses at $530, and standalone houses averaging $560. This pricing structure makes Christchurch particularly attractive for investors seeking positive cash flow properties.
What's the average rent per square meter depending on the property size and surface area?
Rental prices per square meter are not commonly quoted in the New Zealand market, unlike sale prices which provide clearer per-square-meter data.
Based on available sale price data per square meter, Auckland houses average $9,018/m², Bay of Plenty houses $6,999/m², Canterbury houses $4,687/m², and Otago houses command a premium at $15,966/m². However, these figures reflect purchase prices rather than rental rates.
For rental estimations in Auckland apartments, rough calculations suggest approximately $6-$16 per square meter per week, depending on location, size, and property quality. This wide range reflects the significant variation in apartment standards and locations within the Auckland market.
Typical apartment sizes range from 40-90 square meters, while houses generally span 80-200 square meters. These size variations significantly impact the per-square-meter rental calculations and overall weekly rental costs.
The lack of standardized per-square-meter rental data reflects the New Zealand market's preference for quoting weekly rental rates rather than space-based pricing, making direct size comparisons more challenging for investors.
What are some example rental prices for common property types in key cities?
Auckland's Avondale suburb provides clear examples of rental pricing from January to June 2025, with 1-bedroom flats achieving a median $420 per week, 2-bedroom apartments at $560 weekly, and 3-bedroom houses commanding $695 per week.
Christchurch offers more affordable options with 2-bedroom homes ranging from $450-$550 per week and 2-bedroom townhouses specifically at $530 weekly. This pricing makes Christchurch attractive for investors seeking properties that cover mortgage payments with rental income.
Wellington's rental examples show apartments at $595 weekly, units at $540, and townhouses reaching $675 per week. These prices reflect Wellington's position as the capital city while remaining slightly more affordable than Auckland's premium locations.
Provincial areas like Dunedin show rental prices averaging $616-$709 per week depending on property type and location, with Dunedin City specifically averaging $709 weekly in July 2025. Southland maintains the most affordable rental market at $489 per week.
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What additional costs should I factor in, such as property management fees, maintenance, and local taxes?
Property management fees in New Zealand typically range from 7.5% to 10% of rental income plus GST, with Auckland generally commanding 1% higher fees than other regions.
Additional management charges include tenant sourcing fees equivalent to one week's rent plus GST, regular inspection fees, maintenance coordination charges, and various administrative fees. These costs can add 2-4% annually to your total property management expenses.
Council rates represent a significant ongoing cost for landlords, typically ranging from $4,000-$5,000 annually for an average home. These local taxes are the landlord's responsibility and cannot be passed to tenants.
Landlord insurance premiums typically cost $350-$700 annually, depending on property value, location, and coverage level. This insurance is essential for protecting against tenant damage, rental default, and property damage not covered by standard house insurance.
Maintenance costs remain unpredictable and entirely the landlord's responsibility, ranging from minor repairs to major system replacements. Successful investors typically budget 1-2% of property value annually for maintenance and repairs.
How do mortgage costs compare with current rental yields for landlords?
As of September 2025, the national median gross rental yield sits at 4.52%, while floating mortgage rates hover around 7-7.5%, creating negative cash flow scenarios for many properties.
The yield distribution shows 25% of New Zealand properties generating gross yields under 3.7%, making them particularly challenging for investors relying on rental income to service debt. Main centres like Auckland and Wellington typically fall into this lower-yield category.
Provincial regions significantly outperform main centres, with South Island and provincial areas achieving yields between 5.65%-5.76%, particularly in Otago and Southland. These higher yields provide better mortgage coverage potential.
The current interest rate environment means many properties, especially in Auckland and Wellington, require substantial owner contributions to cover mortgage payments after rental income. This situation favors investors with significant equity or those targeting capital growth over immediate cash flow.
Regional investors benefit from both higher yields and lower property prices, creating opportunities for positive cash flow properties that can service mortgage costs while generating modest profits.
What's the difference in profitability between short-term rentals (like Airbnb) and long-term rentals?
Short-term rentals through platforms like Airbnb can generate higher gross yields in desirable tourist locations, but come with significantly higher management costs, greater vacancy risks, and frequent tenant turnover expenses.
Long-term rentals provide stable, predictable income streams with lower management costs and reduced vacancy periods. The current market shows yields rising for long-term rentals relative to house prices, making them increasingly attractive for investors seeking consistency.
Short-term rental success depends heavily on location, with tourist hotspots and business centres offering the best potential returns. However, the operational complexity, cleaning costs, and marketing requirements often offset the higher daily rates.
Regulatory risks also favor long-term rentals, as many councils are implementing restrictions on short-term rental operations, potentially limiting future profitability and resale values for properties optimized for holiday letting.
The current market conditions suggest long-term rentals offer better risk-adjusted returns for most investors, particularly those seeking passive income streams without intensive property management requirements.
What kind of tenant profiles are typically renting in New Zealand right now?
The New Zealand rental market currently serves a diverse tenant base including university students concentrated in cities like Dunedin, Christchurch, and Wellington, young professionals primarily in Auckland and Wellington, and growing numbers of families seeking quality rental accommodation.
International migrants represent an increasing portion of the tenant market, particularly in main centres where employment opportunities concentrate. These tenants often seek longer-term rental arrangements and are willing to pay premium rents for quality, well-located properties.
An emerging trend shows tenants increasingly prioritizing warmer, well-insulated homes, reflecting New Zealand's healthy homes standards and growing awareness of housing quality. This shift benefits landlords who have invested in property improvements.
Retirees also form a notable segment of the rental market, often seeking smaller, low-maintenance properties in accessible locations. This demographic typically provides stable, long-term tenancies with reliable payment histories.
The tenant profile evolution toward quality-conscious renters creates opportunities for landlords offering superior properties while potentially leaving substandard housing with higher vacancy rates.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the current vacancy rates by region and property type?
National vacancy rates have increased compared to previous years, with rental supply reaching a 10-year high as of September 2025.
Dunedin and Hamilton show particularly high supply levels, suggesting increased vacancy rates that may pressure rental growth in these markets. Rental listings have increased 16.2% nationally, indicating a shift toward a more tenant-favorable market.
Auckland and Wellington rental markets have eased from previous tight conditions but remain competitive for quality properties. The increased supply primarily affects lower-quality housing stock, while premium properties maintain strong demand.
Regional variations show some provincial areas experiencing oversupply while others maintain balanced markets. The overall trend suggests landlords need to offer competitive properties to maintain low vacancy rates.
Quality properties with modern amenities, good insulation, and desirable locations continue to command premium rents with minimal vacancy, while substandard housing faces longer vacancy periods and reduced rental growth potential.
How do rental yields look today, and what are the smartest choices for investors?
Current rental yields strongly favor provincial regions, with Southland and Otago achieving yields up to 5.7%, significantly outperforming main centres where yields typically range from 3.5-4.5%.
The smartest investment choices for 2025 focus on provincial areas where property prices have remained stable while rents continue growing. Regional centres offer better cash flow potential and lower entry costs for new investors.
Older housing stock presents opportunities as prices have stagnated while rental demand remains steady, creating improved yield scenarios for investors willing to manage maintenance requirements. However, properties must meet healthy homes standards to remain viable.
Main centres like Auckland and Wellington require significant equity positions and focus on capital growth rather than immediate cash flow. These markets suit investors with substantial resources seeking long-term appreciation.
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How have average rents and yields changed compared with one year ago and five years ago?
Annual rent growth shows a national average increase of 2.5% from 2024 to 2025, representing moderate growth compared to previous years. However, regional variations are significant, with Dunedin experiencing exceptional growth of 12% annually.
Over the past five years, rental yields have experienced compression in main centres as property prices outpaced rent growth during the 2019-2022 period. Provincial areas maintained more stable yield relationships throughout this period.
The COVID-19 period created temporary rental market disruptions, followed by rapid price appreciation that compressed yields in main centres. Recent market cooling has stabilized yields, with some improvement as price growth moderates while rents continue rising.
Yield compression in Auckland and Wellington reached extreme levels during the 2020-2022 property boom, making many properties unsuitable for rental investment. Current conditions show yields stabilizing and gradually improving as price growth slows.
Provincial markets demonstrated more resilience throughout the five-year period, maintaining attractive yields even during peak price appreciation phases, making them consistently better choices for income-focused investors.
What's the rental price and yield outlook for the next one, five, and ten years, and how does it compare with similar global cities?
The one-year outlook suggests moderate rent increases with provincial area yields remaining attractive while main-centre rents stabilize. Economic recovery timing will significantly influence rental demand and pricing power.
Five-year projections anticipate market heating with economic recovery, driving rent growth of 4-5% annually. Yields will depend on property price growth relative to rent increases and Official Cash Rate trends affecting mortgage costs.
Ten-year forecasts indicate gradual rent and price growth as affordability constraints and policy interventions moderate market appreciation. Yields will likely stabilize at current levels unless significant supply increases or demand shifts occur.
Globally, Auckland and Wellington yields of 3-5% compare unfavorably to many US cities achieving 4-7% yields but exceed London and New York markets typically generating 2-3% returns. New Zealand property offers safety and stability premium over higher-yielding but riskier markets.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding New Zealand's rental market in 2025 reveals clear regional disparities that significantly impact investment decisions.
Provincial areas consistently outperform main centres for rental yields, while Auckland and Wellington focus on capital growth over immediate cash flow returns.
Sources
- Infometrics - Average Rent New Zealand
- Trade Me - How Much is Rent in NZ
- Wise Move - Cost of Living in New Zealand
- Real Estate News - June 2025 Rental Report
- Opes Partners - Gross Yield Data
- Property Brokers - Yields and Opportunities
- QV - House Price Index June 2025
- Area Specialist - Property Market Insights 2025
- Tenancy Services - Market Rent Information
- Opes Partners - Property Management Costs