Median rent in Aotearoa drops to two and a half year low

One of the biggest drops in median weekly rent was seen in Pōneke (Wellington), which now stands at $600, down 8 per cent year-on-year.

"The sharp, continued drop in Wellington suggests the market is responding to increasing supply," says Ms Wylde. "New listings in the region were up 23 per cent month-on-month, and while search activity only lifted by 3 per cent across the region, this supply surge is clearly easing the pressure on prices."

The price relief trend extends elsewhere across the country. Gisborne’s rents have fallen by close to 9 per cent year-on-year to $640, Otago is also down 5 per cent to $620 and the Bay of Plenty fell 4 per cent to $650. Auckland also saw a decrease of 4 per cent.

Despite these year-on-year declines, the Bay of Plenty and Auckland remain the country's most expensive regions to rent at $650 per week.

While some of the major centres cool, smaller regions are showing strong resilience or growth. Nelson/Tasman recorded the largest year-on-year increase of 4 per cent, followed by Southland (2%) and Taranaki (2%).

“These pockets of resilience, particularly along the west coast of the country, show that rental markets are incredibly localised," says Ms Wylde. "The national figure is softening, but if you're looking in these smaller, resilient spots, tenants may find it hard to land a bargain or see a drop in rent.”

The overall cooling trend isn't uniform across all cities. When looking specifically at urban property types, which include apartments, townhouses and units, Christchurch is the only main city seeing a year-on-year increase across the board.

In Ōtautahi, the median rent for urban properties was up 1 per cent, with apartments and units up 2 per cent respectively. In contrast, Auckland, and Wellington recorded annual decreases.

"This highlights the continuing underlying strength of the rental market in Christchurch, where demand for smaller, more centrally located dwellings is still pushing prices up even as other major cities slow down," says Ms Wylde.

The number of rental properties available is continuing to ease the pressure on prices. Listings onsite were  up 2 per cent year-on-year in October, while overall demand is easing, with total searches for rentals nationwide down 6 per cent compared to October last year.

“This suggests we've either got fewer people in the rental market overall, or that tenants are choosing to stay put in their current flats. Either way, this lack of competition gives renters a bit more power right now," said Ms Wylde.

There is, however, strong activity in key lifestyle regions. "It appears many Kiwi are looking to increase their time outside, with several regions known for their sunshine hours recording big year-on-year jumps in rental searches.

“Gisborne (15%), Hawke's Bay (15%), and Marlborough (10%) all recorded significant increases in searches in October compared to the same time last year," adds Ms Wylde.