Authored by the expert who managed and guided the team behind the New Zealand Property Pack
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Rental yields in New Zealand sit around 3.9% gross as of early 2026, which translates to roughly 2.6% net after you account for rates, insurance, and management fees.
That might sound modest, but yields vary dramatically depending on where you buy, with some South Auckland suburbs delivering over 4.5% while premium areas like Herne Bay barely crack 3%.
We constantly update this blog post to reflect the latest market data and trends across New Zealand's residential rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in New Zealand.
Insights
- New Zealand's national gross rental yield of 3.9% means an NZ$800,000 property typically generates around NZ$600 per week in rent before any costs are deducted.
- The gap between gross and net yields in New Zealand is about 1.3 percentage points, mainly because council rates alone can run several thousand dollars annually even for modest homes.
- Auckland's premium suburbs like Herne Bay and Remuera often yield below 3.3% gross, while value suburbs like Manurewa and Papakura can push past 4.5%.
- New Zealand landlords should budget roughly 1% of building value annually for maintenance, according to BRANZ research on housing condition costs.
- Vacancy rates across New Zealand hover around 2.5% nationally, but this varies from under 2% near hospitals and universities to over 4% in oversupplied pockets.
- The Natural Hazards Insurance levy adds 16 cents per NZ$100 of cover to every landlord's insurance bill, a cost unique to New Zealand's earthquake-prone environment.
- Full-service property management in New Zealand typically costs 8% to 10% of rent plus GST, with large Auckland agencies like Barfoot and Thompson charging 8.5% plus GST.
- Smaller units (one to two bedrooms) in renter-heavy locations generally outperform larger homes on yield per square meter because rents scale with bedrooms but prices scale with land value.
What are the rental yields in New Zealand as of 2026?
What's the average gross rental yield in New Zealand as of 2026?
As of early 2026, the average gross rental yield across all residential property types in New Zealand sits at approximately 3.9%, meaning landlords typically collect just under 4% of their property's value in annual rent before expenses.
Most standard rental properties in New Zealand fall within a realistic gross yield range of 3.5% to 4.5%, depending on the city and neighborhood where the property is located.
This puts New Zealand's national average slightly below what you might find in some regional centres like Christchurch or Hamilton, but above the compressed yields seen in Auckland's premium suburbs.
The single biggest factor shaping New Zealand gross rental yields right now is that property prices haven't surged while rents have remained relatively flat, which has kept the rent-to-price ratio stable rather than compressing yields further.
What's the average net rental yield in New Zealand as of 2026?
As of early 2026, the average net rental yield in New Zealand comes in at approximately 2.6% across all residential property types, which is what remains after deducting operating costs but before mortgage payments and income tax.
The typical gap between gross and net yields in New Zealand is around 1.3 percentage points, reflecting the country's relatively high holding costs compared to some other markets.
Council rates are the expense that most significantly reduces gross yield to net yield in New Zealand, often running several thousand dollars annually for a standard dwelling, with Auckland and Wellington publishing average residential rates that can easily exceed NZ$3,000 per year.
Most standard investment properties in New Zealand deliver net yields between 2.2% and 3.2%, with the range depending on how efficiently you manage costs like insurance, maintenance, and property management fees.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in New Zealand.
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in New Zealand in 2026?
In New Zealand's early 2026 market, a gross rental yield of 4.5% or higher is generally considered "good" by local investors, while anything above 3.0% net (before mortgage and tax) puts you in solid territory.
The threshold that separates average-performing properties from high-performing ones in New Zealand tends to fall around the 4.0% gross mark, with properties above this level typically found in value suburbs or regional centres rather than premium coastal areas.
How much do yields vary by neighborhood in New Zealand as of 2026?
As of early 2026, gross rental yields in New Zealand can vary by 1.5 to 3.0 percentage points between the highest-yield and lowest-yield neighborhoods within the same city.
The highest rental yields in New Zealand typically come from more affordable suburbs with strong working-family or renter demand, such as Manurewa, Papakura, and Ranui in Auckland, or Linwood and Woolston in Christchurch, where purchase prices remain accessible but rents hold steady.
The lowest rental yields show up in premium coastal and school-zone suburbs like Herne Bay, Remuera, and Ponsonby in Auckland, or Kelburn and Oriental Bay in Wellington, where buyers pay steep prices for lifestyle and prestige that rents simply don't match.
The main reason yields vary so much across New Zealand neighborhoods is that property prices move far more dramatically than rents between areas, so a suburb that costs twice as much rarely commands twice the rent.
By the way, we've written a blog article detailing what are the current best areas to invest in property in New Zealand.
How much do yields vary by property type in New Zealand as of 2026?
As of early 2026, gross rental yields across different property types in New Zealand generally range from around 3.3% for detached houses in premium areas up to 4.5% or more for well-located apartments and units with reasonable body corporate fees.
Small apartments and units in renter-heavy locations currently deliver the highest average gross rental yields in New Zealand, provided the body corporate fees don't eat into returns too heavily.
Detached houses in premium school-zone suburbs tend to deliver the lowest gross rental yields in New Zealand because buyers pay significant premiums for land, character, and catchment that renters won't fully compensate through higher rent.
The key reason yields differ between property types in New Zealand is that purchase prices are driven by land value and prestige, while rents are driven by bedrooms and location convenience, creating a mismatch that favors efficient, well-located smaller properties.
By the way, you might want to read the following:
What's the typical vacancy rate in New Zealand as of 2026?
As of early 2026, the average residential vacancy rate in New Zealand sits at approximately 2.5%, meaning most landlords can expect their properties to be occupied for the vast majority of the year.
Vacancy rates across different neighborhoods in New Zealand realistically range from around 1.5% in high-demand areas near hospitals and universities up to 4% or more in oversupplied or weaker-demand pockets.
The main factor driving vacancy rates in New Zealand right now is the balance between rental listings and tenant demand, with late 2025 data showing elevated listings and subdued rent growth, which gives tenants slightly more choice than in previous years.
New Zealand's vacancy rate is relatively low by international standards, though it has edged up from the extremely tight conditions seen during peak housing pressure years.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in New Zealand.
What's the rent-to-price ratio in New Zealand as of 2026?
As of early 2026, the average annual rent-to-price ratio in New Zealand is approximately 3.9%, which means it would take roughly 25 to 26 years of rent to equal a property's purchase price if you ignore costs and inflation.
A rent-to-price ratio above 4.0% is generally considered favorable for buy-to-let investors in New Zealand, and this ratio is essentially the same concept as gross rental yield expressed differently.
New Zealand's rent-to-price ratio is modest compared to some higher-yielding markets globally but sits in line with other mature, stable housing markets where capital growth has historically been a significant part of total returns.
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in New Zealand give the best yields as of 2026?
Where are the highest-yield areas in New Zealand as of 2026?
As of early 2026, the highest-yield neighborhoods in New Zealand include South Auckland suburbs like Manurewa, Papakura, and Ōtāhuhu, along with Christchurch's eastern suburbs such as Linwood and Woolston, and Dunedin areas like South Dunedin and Caversham.
These high-yield areas in New Zealand typically deliver gross rental yields in the 4.5% to 5.5% range, significantly above the national average of 3.9%.
The main characteristic these high-yield suburbs share is that purchase prices remain relatively affordable while rents are supported by steady employment, transport links, and working-family demand, creating a favorable rent-to-price ratio.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in New Zealand.
Where are the lowest-yield areas in New Zealand as of 2026?
As of early 2026, the lowest-yield neighborhoods in New Zealand include Auckland's prestigious suburbs like Herne Bay, Remuera, and Ponsonby, Wellington's Kelburn and Oriental Bay, and Christchurch's Fendalton and Merivale.
These premium areas typically deliver gross rental yields in the 2.5% to 3.3% range, well below the national average because property prices are driven by lifestyle factors that rents don't fully reflect.
Yields are compressed in these New Zealand suburbs because buyers pay steep premiums for coastal views, heritage character, top school zones, and prestige, while renters in the same areas won't pay proportionally higher rents for these features.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in New Zealand.
Which areas have the lowest vacancy in New Zealand as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in New Zealand include Newtown in Wellington (near the hospital and university), Riccarton in Christchurch (close to Canterbury University), and Mount Wellington in Auckland (near major employment and retail hubs).
These low-vacancy areas typically experience vacancy rates below 2%, meaning properties rarely sit empty for more than a week or two between tenancies.
The main demand driver keeping vacancy low in these New Zealand neighborhoods is proximity to major employment nodes, hospitals, and universities, which creates a constant stream of professionals, healthcare workers, and students seeking rental accommodation.
The trade-off investors typically face when targeting these low-vacancy areas is that strong demand often translates to higher purchase prices, which can compress gross yields even as occupancy remains excellent.
Which areas have the most renter demand in New Zealand right now?
The neighborhoods experiencing the strongest renter demand in New Zealand right now include Newtown and Kilbirnie in Wellington, Riccarton and Addington in Christchurch, and New Lynn and Kingsland in Auckland.
The typical renter profile driving demand in these areas includes young professionals, healthcare workers, university students, and migrants, all seeking convenient access to employment, education, and public transport.
Rental listings in these high-demand New Zealand neighborhoods typically get filled within one to two weeks, and well-priced properties in good condition often receive multiple inquiries within days of listing.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in New Zealand.
Which upcoming projects could boost rents and rental yields in New Zealand as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents in New Zealand include Auckland's City Rail Link expansion (improving connectivity to inner suburbs), Wellington's health precinct development around Newtown, and Christchurch's ongoing inner-city regeneration with improved transport links.
The neighborhoods most likely to benefit from these projects include the Mount Eden and Kingsland fringe in Auckland, Newtown and Mount Cook in Wellington, and Addington and Riccarton in Christchurch, where improved access and amenities should strengthen tenant demand.
Investors in areas near these New Zealand infrastructure projects might realistically expect rent increases of 5% to 10% over the next two to three years as the projects complete and accessibility improves, though this varies by how much each area's rents currently lag its potential.
You'll find our latest property market analysis about New Zealand here.
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What property type should I buy for renting in New Zealand as of 2026?
Between studios and larger units in New Zealand, which performs best in 2026?
As of early 2026, smaller dwellings like studios and one-bedroom units in renter-heavy locations tend to perform better in terms of rental yield and occupancy in New Zealand, thanks to their lower purchase price and strong demand from young professionals and single-person households.
Studios in well-located New Zealand suburbs typically deliver gross yields of 4.0% to 5.0% (around NZ$15,000 to NZ$20,000 annually, or roughly US$9,000 to US$12,000 and EUR 8,500 to EUR 11,000), while larger three-bedroom homes often yield 3.5% to 4.0% gross.
The main factor explaining why smaller units outperform in New Zealand is that rents scale with bedroom count, but purchase prices scale heavily with land area, meaning compact units offer more rent per dollar invested.
That said, larger family homes can be the better investment choice in New Zealand suburbs with strong school catchments, where families stay longer, turn over less frequently, and treat the property with more care.
What property types are in most demand in New Zealand as of 2026?
As of early 2026, the most in-demand property type for renters in New Zealand is the two-to-three bedroom house or townhouse in suburban areas with good schools and transport links.
The top three property types ranked by current tenant demand in New Zealand are two-to-three bedroom family homes, one-to-two bedroom apartments in CBD and fringe areas, and modern townhouses in new development zones.
The primary demographic trend driving this demand pattern in New Zealand is the combination of young families seeking affordable suburban homes and a growing number of single-person and couple households preferring compact, well-located apartments.
Large executive homes (four-plus bedrooms) in premium suburbs are currently underperforming in rental demand and likely to remain so in New Zealand because their high rents limit the tenant pool and the owner-occupier market absorbs most of this stock.
What unit size has the best yield per m² in New Zealand as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in New Zealand is typically between 50 and 80 square meters, which covers efficient one-to-two bedroom apartments and compact townhouses.
Properties in this optimal size range in New Zealand typically achieve gross yields of NZ$350 to NZ$450 per square meter annually (roughly US$210 to US$270 and EUR 200 to EUR 250), compared to larger homes that often yield under NZ$300 per square meter.
The main reason smaller or larger units tend to have lower yield per square meter in New Zealand is that very small studios can struggle with liveability and tenant appeal, while large luxury homes pay a premium for land and finish that renters won't match with proportionally higher rent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in New Zealand.
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 costs cut my net yield in New Zealand as of 2026?
What are typical property taxes and recurring local fees in New Zealand as of 2026?
As of early 2026, the annual council rates (New Zealand's equivalent of property tax) for a typical rental property range from NZ$2,500 to NZ$4,500 (roughly US$1,500 to US$2,700 and EUR 1,400 to EUR 2,500), depending on the property's capital value and which council district it falls under.
Beyond rates, New Zealand landlords must also budget for water and wastewater charges where these aren't separately metered and passed to tenants, plus body corporate fees for apartments and townhouses, which can add NZ$2,000 to NZ$5,000 or more annually.
These taxes and fees typically represent around 8% to 12% of gross rental income for a standard New Zealand investment property, making them a significant factor in the gap between gross and net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in New Zealand.
What insurance, maintenance, and annual repair costs should landlords budget in New Zealand right now?
Annual landlord insurance for a typical New Zealand rental property costs between NZ$2,000 and NZ$5,000 (roughly US$1,200 to US$3,000 and EUR 1,100 to EUR 2,800), with higher premiums in earthquake-prone areas or for properties with higher rebuild costs.
New Zealand landlords should budget approximately 1% of building value annually for maintenance and repairs, which translates to around NZ$4,000 to NZ$8,000 per year for a typical rental (roughly US$2,400 to US$4,800 and EUR 2,200 to EUR 4,500).
The repair expense that most commonly catches New Zealand landlords off guard is weathertightness remediation, particularly for homes built during the "leaky building" era of the 1990s and 2000s, which can run into tens of thousands of dollars.
In total, New Zealand landlords should realistically budget NZ$6,000 to NZ$13,000 annually (roughly US$3,600 to US$7,800 and EUR 3,400 to EUR 7,300) for the combined cost of insurance, maintenance, and repairs on a standard rental property.
Which utilities do landlords typically pay, and what do they cost in New Zealand right now?
In most standard New Zealand long-term rentals, tenants pay for electricity, gas (where applicable), and internet, while landlords sometimes cover water and wastewater charges if the property lacks separate metering, plus any common-area costs through body corporate levies.
Where New Zealand landlords do cover utilities (more common with furnished rentals or room-by-room arrangements), monthly electricity costs alone typically run NZ$150 to NZ$300 (roughly US$90 to US$180 and EUR 85 to EUR 170), with regional variation that the Electricity Authority publishes transparently.
What does full-service property management cost, including leasing, in New Zealand as of 2026?
As of early 2026, full-service property management in New Zealand typically costs 8% to 10% of collected rent plus GST, with large Auckland agencies like Barfoot and Thompson publicly listing rates of 8.5% plus GST (roughly NZ$35 to NZ$60 per week for a typical rental, or US$21 to US$36 and EUR 20 to EUR 34).
On top of ongoing management, New Zealand agencies commonly charge a letting or tenant-placement fee of around one week's rent plus GST each time a new tenant is found, which adds NZ$500 to NZ$800 (roughly US$300 to US$480 and EUR 280 to EUR 450) per tenant changeover.
What's a realistic vacancy buffer in New Zealand as of 2026?
As of early 2026, New Zealand landlords should set aside approximately 6% to 8% of annual rental income as a vacancy buffer, which accounts for time between tenancies and minor repairs during changeovers.
This buffer translates to roughly two to four vacant weeks per year for most New Zealand landlords, though properties in weaker-demand areas or those priced above market may experience longer gaps.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about New Zealand, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Stats NZ - Price Indexes | Stats NZ is New Zealand's official statistics agency, and its price indexes are the reference series for inflation and rent measures. | We used it to anchor the direction of rent inflation and cross-check private rent measures. We also used it as a consistency check against MBIE bond-based rent medians. |
| MBIE / Tenancy Services - Rental Bond Data | This is a government dataset based on bonds lodged for real tenancies, not surveys or ads. | We used it as the backbone for what renters are actually paying, especially median rents by area. We also used it to triangulate rents against Trade Me's listings-based index. |
| Tenancy Services - Market Rent Tool | This is MBIE's official public interface to bond-derived rent distributions across New Zealand. | We used it for neighborhood and suburb examples to sanity-check rent levels across big cities. We also used it to ground micro-area discussions in actual named places. |
| MBIE - Market Rent API | This is an official API exposing the same bond-derived market rent statistics with transparent parameters. | We used it as a methodology reference for how market rent is constructed including time windows and quartiles. We also used it to justify using bond data as a primary rent source. |
| REINZ - Monthly Property Reports | REINZ is New Zealand's national real estate institute and its reports are the standard reference for sales and price tracking. | We used it to anchor purchase price levels and trends around early 2026. We also used it as a cross-check against Cotality value measures. |
| Reserve Bank of New Zealand - Housing Series | This is New Zealand's central bank, and it documents how its housing series are sourced and maintained. | We used it to corroborate the main shape of the market including prices and turning points. We also used it for context on investor conditions and the broader housing cycle. |
| Cotality (CoreLogic NZ) - Monthly Housing Chart Pack | Cotality is the dominant New Zealand property data provider used by banks and institutions, with published methodology and broad coverage. | We used its published gross rental yield series as the anchor yield benchmark for national and main centre estimates. We also used its commentary to interpret rent versus price dynamics. |
| Cotality - Best of the Best Explainer | This describes a suburb-level dataset used widely in New Zealand housing analysis. | We used it to support suburb and neighborhood level yield variation as a real measured phenomenon. We also used it to justify giving named micro-area examples rather than only city-level averages. |
| Trade Me Property - Rental Price Index | Trade Me is New Zealand's largest property marketplace, and it publishes a consistent listings-based rent index. | We used it as a timely cross-check on the direction of rents and what's being asked in the market. We also used it to triangulate MBIE bond medians with current listings conditions. |
| Auckland Council - Rates Explainer | This is the local authority publishing official rates information for New Zealand's largest city. | We used it to ground the order of magnitude of council rates as a key net yield cost with a concrete published example. We also used it as a template for how rates behave elsewhere. |
| Wellington City Council - Rates Information | This is the local authority publishing official rates information with suburb-level medians. | We used it to show that rates materially vary even within one city, which is important for neighborhood net yields. We also used it to validate the rates range we budget for net yield estimates. |
| Inland Revenue (IRD) - Rental Income Guide | This is New Zealand's tax authority, and this is the official landlord guide to deductible expenses and rules. | We used it to define what net yield should include in terms of operating costs versus tax versus financing. We also used it to confirm interest deductibility timing for early 2026 cashflow discussions. |
| Treasury - NHI Levy Rate Statement | This is a core government policy institution publishing the levy setting for natural hazards cover. | We used it to quantify the Natural Hazards Insurance levy rate that flows into insurance bills. We also used it as a hard number input for landlord insurance budgeting. |
| BRANZ - Maintenance Cost Research | BRANZ is New Zealand's building research body and its figures are widely used in housing condition and repair budgeting. | We used it to set a realistic annual maintenance allowance range instead of guesswork. We also used it to translate that allowance into a net yield haircut. |
| Electricity Authority - Regional Power Prices | This is the sector regulator providing transparent comparisons of household electricity costs across New Zealand. | We used it to describe which utilities are meaningful in New Zealand and when landlords might need to budget them. We also used it as a reference for cases where landlords cover power. |
| Barfoot and Thompson - Landlord FAQs | This is one of New Zealand's largest residential agencies and it publishes its fee schedule publicly. | We used it to pin down a real published full-service property management fee percentage. We also used it as a benchmark to represent typical big-agency pricing in New Zealand metros. |
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