Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Yes, the analysis of Wellington's property market is included in our pack
If you're thinking about investing in rental property in Wellington, understanding the actual numbers behind rental yields is essential before you commit your money.
This guide breaks down everything from gross and net yields to neighborhood-by-neighborhood differences, so you can see where the real opportunities are in Wellington's rental market.
We constantly update this blog post to reflect the latest data and market shifts in Wellington.
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 Wellington.
Insights
- Wellington's average gross rental yield sits around 4.4% in early 2026, which is moderate compared to other New Zealand cities but reflects the capital's premium pricing and constrained geography.
- Insurance costs in Wellington can run NZ$3,000 to NZ$6,000 or more annually due to earthquake risk, roughly double what Auckland landlords pay for similar properties.
- The gap between Wellington's highest and lowest-yield neighborhoods spans about 2 to 3 percentage points, with areas like Cannons Creek outperforming prestige suburbs like Kelburn.
- Rental listings in Wellington surged throughout 2025, shifting the market toward tenants and putting downward pressure on rents in overpriced or poorly insulated properties.
- Smaller units like studios and one-bedrooms typically deliver higher gross yields in Wellington, but two-bedroom properties often win on net yield due to lower tenant turnover.
- Wellington landlords should budget around 6% to 10% of annual rent as a vacancy buffer, translating to roughly 3 to 5 weeks of empty weeks per year in the current market.
- Healthy Homes compliance has become a major cost factor in Wellington, where older character homes and villas often require significant upgrades to meet insulation and heating standards.
- The Te Ngākau Civic Square reopening in March 2026 could lift rents for CBD-fringe rentals in Te Aro and nearby areas by improving local amenity appeal.
What are the rental yields in Wellington as of 2026?
What's the average gross rental yield in Wellington as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Wellington sits at approximately 4.4%.
Most typical rental properties in Wellington fall within a realistic gross yield range of about 3.6% to 5.6%, depending on the suburb and property type you purchase.
This puts Wellington roughly in line with other major New Zealand cities, though slightly below some regional centers where prices are lower relative to rents.
The single biggest factor influencing gross yields in Wellington right now is the surge in rental listings throughout 2025, which gave tenants more bargaining power and softened rent growth across the city.
What's the average net rental yield in Wellington as of 2026?
As of early 2026, the average net rental yield for residential properties in Wellington is approximately 3.0%.
The typical gap between gross and net yields in Wellington runs about 1.2 to 2 percentage points, meaning landlords lose roughly a quarter to a third of their gross return to operating costs.
The expense that hits Wellington landlords hardest is insurance, which can cost NZ$3,000 to NZ$6,000 or more annually due to the city's earthquake risk, roughly double what landlords pay in Auckland.
Most standard investment properties in Wellington deliver net yields in the 2.3% to 3.8% range, with the variation driven mainly by differences in council rates, insurance premiums, and maintenance requirements for older housing stock.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Wellington.
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 Wellington in 2026?
In Wellington in 2026, a gross rental yield of around 4.5% or higher is generally considered good by local investors, since the city's appeal as a liveable capital with central government jobs means properties often trade on lifestyle factors rather than pure cashflow.
The threshold that separates average performers from high performers in Wellington's rental market is roughly 6% gross, which typically requires targeting cheaper suburbs, smaller units, or properties with value-add potential.
How much do yields vary by neighborhood in Wellington as of 2026?
As of early 2026, gross rental yields in Wellington can vary by about 2 to 3 percentage points between the highest-yield and lowest-yield neighborhoods.
Higher yields typically show up in more affordable, renter-heavy areas where purchase prices are lower but rental demand stays steady, such as Cannons Creek and Waitangirua in Porirua East, Naenae and Wainuiomata in Lower Hutt, and Stokes Valley in Upper Hutt.
Lower yields are common in prestige suburbs where property prices significantly outrun achievable rents, including Kelburn, Thorndon, Mount Victoria, Oriental Bay, and Seatoun.
The main reason for this spread is simple: in Wellington's expensive inner suburbs, buyers pay a premium for amenity and lifestyle that doesn't translate proportionally into higher rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Wellington.
How much do yields vary by property type in Wellington as of 2026?
As of early 2026, gross rental yields in Wellington range from around 3.5% for standalone houses and character villas up to about 5.5% or higher for studios and one-bedroom apartments.
Studios and small apartments typically deliver the highest average gross yields in Wellington because their purchase price per bedroom tends to be more accessible while rent demand from singles, students, and CBD workers remains strong.
Standalone houses and character villas generally deliver the lowest gross yields because they command premium prices and Wellington's older stock often requires costly maintenance and Healthy Homes upgrades.
The key reason yields differ by property type in Wellington is that rent doesn't scale proportionally with purchase price, so cheaper-to-buy properties often generate more income relative to their cost.
By the way, you might want to read the following:
What's the typical vacancy rate in Wellington as of 2026?
As of early 2026, the average residential vacancy rate in Wellington sits at approximately 3%.
Vacancy rates across Wellington neighborhoods typically range from about 2% in well-located, well-presented rentals up to 4% or higher for overpriced or poorly insulated properties.
The main factor driving vacancy rates in Wellington right now is the surge in rental listings throughout 2025, which gave tenants more choice and left landlords with optimistically priced or substandard properties facing longer void periods.
Wellington's vacancy rate is roughly in line with the national average, though the city's unique mix of government workers and students creates pockets of very tight demand alongside areas with more available stock.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Wellington.
What's the rent-to-price ratio in Wellington as of 2026?
As of early 2026, the average rent-to-price ratio in Wellington is approximately 0.37% per month, which translates to about 4.4% annually.
Buy-to-let investors in Wellington generally consider a monthly rent-to-price ratio above 0.4% (or roughly 5% annually) to be favorable, since this level typically indicates the property can generate meaningful positive cashflow after expenses.
Wellington's rent-to-price ratio is similar to other major New Zealand cities like Auckland, though some regional centers offer better ratios because their property prices haven't climbed as steeply relative to local rents.
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 Wellington give the best yields as of 2026?
Where are the highest-yield areas in Wellington as of 2026?
As of early 2026, the highest-yield areas in Wellington include Cannons Creek and Waitangirua in Porirua East, Naenae and Wainuiomata in Lower Hutt, and Stokes Valley in Upper Hutt.
These top-performing areas typically deliver gross rental yields in the 5% to 6.5% range, well above Wellington's citywide average of around 4.4%.
What these high-yield neighborhoods share is relatively accessible purchase prices combined with consistent rental demand from commuters, families, and long-term tenants who prioritize affordability over inner-city lifestyle.
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 Wellington.
Where are the lowest-yield areas in Wellington as of 2026?
As of early 2026, the lowest-yield neighborhoods in Wellington include Kelburn, Thorndon, Oriental Bay, Mount Victoria, and Seatoun.
These prestigious areas typically deliver gross rental yields in the 3% to 4% range, sometimes even lower for trophy properties with premium price tags.
Yields are compressed in these Wellington suburbs because buyers pay substantial premiums for harbor views, heritage character, and walkable access to the CBD, but rents don't stretch proportionally to match those elevated prices.
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 Wellington.
Which areas have the lowest vacancy in Wellington as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Wellington include Newtown, Johnsonville, and Petone in Lower Hutt.
These low-vacancy areas typically see vacancy rates below 2%, meaning properties rarely sit empty for long between tenants.
The main demand driver keeping vacancy low in these Wellington neighborhoods is their combination of good public transport links, proximity to major employers like Wellington Hospital, and a steady flow of professional renters and families seeking well-connected, practical locations.
The trade-off investors face when targeting these low-vacancy areas is that strong tenant demand often pushes purchase prices higher, which can compress gross yields even as occupancy stays reliable.
Which areas have the most renter demand in Wellington right now?
The neighborhoods experiencing the strongest renter demand in Wellington right now include Te Aro and Mount Cook near the CBD, Newtown close to the hospital, and Johnsonville along the commuter rail corridor.
The typical renter profile driving demand in these areas includes young professionals, hospital and university staff, government workers, and flatting groups who prioritize walkability, public transport access, and proximity to central Wellington employment.
In these high-demand Wellington neighborhoods, well-priced rental listings for warm, dry, Healthy Homes-compliant properties typically get filled within one to two weeks.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Wellington.
Which upcoming projects could boost rents and rental yields in Wellington as of 2026?
As of early 2026, the top infrastructure and development projects expected to boost rents in Wellington include the Te Ngākau Civic Square and Central Library reopening in March 2026, and the Te Ara Tupua walking and cycling corridor connecting Wellington to Lower Hutt.
The neighborhoods most likely to benefit from these projects include Te Aro and the CBD fringe near Civic Square, plus areas along the Ngauranga to Petone corridor such as Kaiwharawhara and Petone itself.
Investors might realistically expect rent increases of around 3% to 7% in affected neighborhoods once these projects complete, though the exact uplift will depend on how significantly they improve local amenity and commute times.
You'll find our latest property market analysis about Wellington here.
Get fresh and reliable information about the market in Wellington
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Wellington as of 2026?
Between studios and larger units in Wellington, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedrooms generally deliver better gross rental yields in Wellington, but well-insulated two-bedroom properties often outperform on net yield due to lower tenant turnover costs.
Studios in Wellington typically yield around 5% to 6% gross (roughly NZ$350 to NZ$450 per week rent, or about USD$210 to $270 / EUR$195 to $250), while larger two-bedroom units usually fall in the 4% to 5% gross range.
The main factor explaining this difference is that rent per square meter drops as unit size increases, but purchase prices don't fall proportionally, so smaller units generate more income relative to their cost.
However, a two-bedroom unit can be the better investment choice in Wellington if you're targeting professional couples or small families who tend to stay longer, reducing your turnover and vacancy costs over time.
What property types are in most demand in Wellington as of 2026?
As of early 2026, the most in-demand property type for renters in Wellington is the two to three bedroom house or townhouse that meets Healthy Homes standards for warmth and insulation.
The top three property types ranked by current tenant demand in Wellington are warm, dry two to three bedroom houses for families and professional sharers, followed by two-bedroom apartments for couples and flatmates, and then modern townhouses that offer low-maintenance living.
The primary trend driving this demand pattern is Wellington's shift toward quality over quantity, where tenants increasingly refuse cold, damp older properties and compete for compliant homes with proper heating and insulation.
One property type currently underperforming in Wellington is the unrenovated character villa or older unit that hasn't been upgraded to meet Healthy Homes requirements, as these now sit vacant longer and attract lower rents.
What unit size has the best yield per m² in Wellington as of 2026?
As of early 2026, the unit size that delivers the best gross rental yield per square meter in Wellington is typically in the 35 to 55 square meter range, which covers studios and compact one-bedroom apartments.
These optimal-sized units in Wellington typically generate around NZ$12 to NZ$16 per square meter per week in rent (roughly USD$7 to $10 / EUR$6.50 to $9), compared to larger units that often fall below NZ$10 per square meter.
Smaller units beat larger ones on yield per square meter because tenants pay a base premium for having their own independent dwelling regardless of size, while very large homes spread that premium across more floor area without proportionally higher rents.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Wellington.
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 Wellington as of 2026?
What are typical property taxes and recurring local fees in Wellington as of 2026?
As of early 2026, annual council rates for a typical rental property in Wellington range from around NZ$2,500 to NZ$5,000 (approximately USD$1,500 to $3,000 / EUR$1,400 to $2,750), depending on the property's capital value and location within the city.
Beyond council rates, Wellington landlords with apartments should budget for body corporate fees, which can add another NZ$2,000 to NZ$5,000 or more annually (roughly USD$1,200 to $3,000 / EUR$1,100 to $2,750) depending on the building's facilities and maintenance needs.
Combined, these taxes and fees typically represent around 8% to 15% of gross rental income for Wellington investment properties, with apartments at the higher end due to body corporate levies.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Wellington.
What insurance, maintenance, and annual repair costs should landlords budget in Wellington right now?
Annual landlord insurance for a typical rental property in Wellington runs around NZ$3,000 to NZ$6,000 or more (approximately USD$1,800 to $3,600 / EUR$1,650 to $3,300), which is roughly double what landlords pay in Auckland due to Wellington's earthquake risk.
For maintenance and repairs, Wellington landlords should budget around 0.5% to 1% of the property's value annually (roughly NZ$3,000 to NZ$8,000 for a mid-range home, or USD$1,800 to $4,800 / EUR$1,650 to $4,400), with older character homes often exceeding this range.
The repair expense that most commonly catches Wellington landlords off guard is Healthy Homes compliance work, especially insulation upgrades and fixed heating installations in the city's older villa and character home stock.
All told, Wellington landlords should realistically budget around NZ$7,000 to NZ$15,000 annually (approximately USD$4,200 to $9,000 / EUR$3,850 to $8,250) for the combined cost of insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Wellington right now?
In Wellington, tenants typically pay for electricity, internet, and usage-based water charges, while landlords may cover fixed water charges that can't be separately metered and, in some apartment buildings, certain bundled building services.
For landlord-paid utilities in a typical Wellington rental, costs usually run around NZ$50 to NZ$150 per month (approximately USD$30 to $90 / EUR$28 to $83), though this varies significantly depending on the tenancy agreement and whether the property is a standalone house or an apartment with shared building costs.
What does full-service property management cost, including leasing, in Wellington as of 2026?
As of early 2026, full-service property management in Wellington typically costs around 7% to 10% of weekly rent plus GST, which for a property renting at NZ$600 per week would mean roughly NZ$180 to NZ$260 per month (approximately USD$110 to $160 / EUR$100 to $145).
On top of ongoing management, Wellington landlords should expect to pay a leasing or tenant-placement fee equivalent to one to two weeks' rent (roughly NZ$600 to NZ$1,200, or USD$360 to $720 / EUR$330 to $660) each time a new tenant is found, which is charged to the landlord since tenants cannot legally be charged letting fees in New Zealand.
What's a realistic vacancy buffer in Wellington as of 2026?
As of early 2026, Wellington landlords should set aside around 6% to 10% of annual rental income as a vacancy buffer to account for turnover periods and potential void weeks.
This translates to roughly 3 to 5 vacant weeks per year for most Wellington rental properties, though well-located, Healthy Homes-compliant properties in high-demand areas may experience less downtime while overpriced or substandard rentals could sit empty longer.
Buying real estate in Wellington can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 Wellington, 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 |
|---|---|---|
| Tenancy Services - Rental Bond Data | It's an official New Zealand government dataset sourced from lodged rental bonds. | We used it to anchor real-world rent levels and rental activity in Wellington. We cross-checked it against other rent series to avoid relying on one dataset. |
| Tenancy Services - Market Rent Tool | It's a government tool built from the same bond data, designed for public use. | We used it to sanity-check typical rents by dwelling type in Wellington. We treated it as a reality check rather than a single source of truth. |
| MBIE - Regional Economic Indicators | It's an MBIE statistical series derived from the bond database with documented methodology. | We used it to cross-check rent direction and levels at the city scale. We used it as a second official rent lens alongside Tenancy Services. |
| Stats NZ - Housing Topic Hub | It's the national statistics agency and baseline for official housing concepts. | We used it to ground definitions and frame what can be measured cleanly at city level. We avoided using made-up indicators. |
| HUD - Rental Price Index | It's a central government series created to provide rental insights when other series are limited. | We used it to triangulate rent trends and confirm Wellington's rent cycle. We used it as a trend check rather than a precise rent level. |
| REINZ - Property Reports | REINZ is the industry body that publishes widely cited sales and price statistics. | We used it to anchor Wellington price levels and movements for yield calculations. We cross-checked against valuation indexes to reduce single-source bias. |
| Reserve Bank of New Zealand - Housing | It's the central bank publishing housing indicators with clear sourcing notes. | We used it to validate the macro backbone of price data. We kept our price assumptions consistent with official macro reporting. |
| QV - House Price Index | QV is a major NZ valuation firm whose index is heavily referenced. | We used it to cross-check Wellington values against sales-based medians. We avoided overreacting to small-sample monthly sales medians. |
| Wellington City Council - Rates | It's the official local government source for rates that landlords actually pay. | We used it to estimate recurring local costs that reduce net yield. We kept rates grounded in Wellington's actual rating-year settings. |
| Inland Revenue - Rental Expense Deductions | It's the tax authority and definitive reference for what's deductible. | We used it to map which costs hit landlords and which are recoverable via tax deductions. We avoided rules of thumb that conflict with NZ tax rules. |
| Tenancy Services - Letting Fees | It's the government's tenancy regulator explaining what can and can't be charged. | We used it to explain leasing costs correctly. We translated legal rules into what landlords should actually budget. |
| HUD - Healthy Homes Standards | It's the responsible ministry's official policy page, updated over time. | We used it to explain why compliance upgrades affect both rents and costs. We justified a realistic maintenance budget for Wellington's older stock. |
| Trade Me - Rental Price Index | It's a major national listings platform with a transparent, repeatable index series. | We used it as a market-facing check on rent direction and supply conditions. We used it alongside bond data because listings reflect current availability. |
| RNZ - Rental Market Coverage | RNZ is a major public broadcaster that typically cites underlying datasets directly. | We used it to corroborate the supply-side story of Wellington listings surging in 2025. We used it as context rather than a primary dataset. |
| Insurance Council of NZ - Market Data | It's the industry body for insurers and a credible aggregator of insurance market info. | We used it to anchor that insurance costs are structurally rising. We justified why Wellington landlords must budget higher insurance than many NZ regions. |
| RNZ - Wellington Insurance Costs | It cites quantified comparisons consistent with Wellington's earthquake-risk pricing reality. | We used it to size a Wellington-specific insurance budget range. We kept the net-yield model realistic for Wellington's risk profile. |
| NZTA - Te Ara Tupua | It's the national transport agency's official project page. | We used it to identify real infrastructure projects that can shift renter demand. We named micro-areas likely to benefit from improved connectivity. |
| Wellington City Council - Civic Square | It's the council's official timeline for a major CBD amenity change. | We used it to identify near-term CBD amenity catalysts. We explained why some CBD-fringe rentals may see improved demand. |
Get the full checklist for your due diligence in Wellington
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts