Regional Rental Review: Rotorua

Rotorua is in the Bay of Plenty region and is renowned for its geothermal activity and vibrant tourism industry.

However, the region has suffered post COVID, in particular, using motels for emergency and transitional housing. This was a response by the previous Government due to the housing crisis with vulnerable individuals and families being housed in motels. This led to concerns around safety within the community.

However, steps have been taken to rectify this and the city is navigating the transition back to a more stable housing environment.

What has happened with rents?

Rotorua rents follow a common pattern that is replicated around much of provincial New Zealand with a steep increase in rents commencing around mid to late 2017. There are signs that rents are starting to level out with Trade Me data highlighting a slowdown.

Onehub powered by Trade Me shows an 83% increase in listed stock in January 2025 compared to January 2024, though there is also an increase in traffic to their website.

The median rental listed price for Trade Me in January 2025 was $590 per week which is a 4% increase from January 2024.

What is happening with bonds?

Data on bonds held by Tenancy Services highlights how supply has failed to keep up with demand resulting in rising rents. Again, from about 2017, the number of active bonds began to drop even though the population has increased. In the 2018 census the population of the Rotorua District was 74,800 and in the 2023 census, the population had increased to 77,000. The population is projected to continue to grow to approximately 80,000 2033 (source Statistics New Zealand).

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