Rental affordability is easing but the regional story tells us much more

Rents, wages and regions: What’s really changing in New Zealand’s rental market?

New Zealand’s rental market is showing signs of relief, with affordability improving across most regions over the past year. But look beneath the headline numbers and a much more interesting picture emerges – one where rents, earnings, housing supply and regional conditions are all pulling in different directions.

For anyone involved in the rental market, whether you own an investment property, rent a home or simply want to understand where things are heading, affordability matters.

But affordability isn’t just about how much the weekly rent is.

It’s about the relationship between what people pay and what they earn – and Property Brokers’ latest Regional Rental Report, produced with The Property Knowledge, shows why that distinction matters.

The September 2026 report examines rental affordability across New Zealand, including how conditions have changed over the past year and over a longer period spanning the Labour-led and National-led governments.

And while there are encouraging signs in the latest numbers, there is one message that comes through clearly:

There is no single New Zealand rental market.

Affordability is improving across much of New Zealand

The latest data provides some welcome news. In the year to June 2026, rental affordability improved in every region measured except the West Coast. Nationally, the proportion of earnings represented by rent fell from 44% to 40%.

44% → 40% National rent-to-income pressure | June 2025 to June 2026

Some of the strongest improvements were recorded in the regions.

Gisborne experienced the biggest year-on-year shift, with its rent-to-income measure falling seven percentage points, from 52% to 45%. Hawke’s Bay and Marlborough each improved by five percentage points, while Taranaki improved by four. Manawatū-Whanganui moved from 42% to 39%.

That is encouraging, particularly for households that have spent several years navigating rising housing and living costs.

However, the numbers also reveal something important about why affordability is improving.

Rents haven’t fallen dramatically, earnings are doing some of the heavy lifting

At a national level, weekly rents were effectively flat. The national weekly rent moved from $636 in June 2025 to $635 in June 2026, a decrease of just $1.

$636 → $635 National weekly rent June 2025 to June 2026

There were much larger movements within individual regions. Gisborne recorded the largest fall, down $27 a week year-on-year, followed by Taranaki at $20 and Hawke’s Bay at $12. 

At the other end of the spectrum, the West Coast increased $27, Nelson and Bays $25, and Northland $17. At the same time, earnings increased across every region over the year.

National monthly earnings per job rose by $484, while Wellington recorded the largest increase at $774, followed by Marlborough at $704 and Nelson at $661.

+$484 Increase in national monthly earnings per job | June 2025 to June 2026

Together, those figures tell perhaps the most important story in the latest data.

Rental affordability is improving not because rents have suddenly fallen across the country, but because rental growth has softened while earnings have increased.

As Property Brokers General Manager Property Management David Faulkner explains, understanding affordability means looking at both sides of the equation.

“Affordability is influenced not only by what tenants pay in rent, but also by what they earn.” - David Faulkner, General Manager Property Management, Property Brokers

Six years of data tell a more complicated story

While the latest annual figures are encouraging, zooming out reveals just how differently rental affordability has moved around New Zealand.

The report compares regional affordability across two periods: May 2019 to November 2023, covering the Labour-led government period analysed in the report, and November 2023 to June 2026 under the National-led Government.

Between May 2019 and November 2023, affordability pressure increased considerably in several provincial markets.

In both Hawke’s Bay and Gisborne, the proportion of earnings going towards rent increased by eight percentage points. Manawatū-Whanganui increased seven points, while Southland rose four.

Since November 2023, however, the regional picture has become much more mixed.

Wellington has experienced the most significant improvement, with the proportion of earnings represented by rent falling from 42% to 35%. Hawke’s Bay and Manawatū-Whanganui have both improved by two percentage points.

Elsewhere, affordability pressures have continued to build. Otago increased five percentage points, while the West Coast moved from 27% to 34%.

42% → 35% Wellington’s rent-to-income share | November 2023 to June 2026

The regional variation is important. Professor Graham Squires, Director of The Property Knowledge, notes that recent improvements and deteriorations cannot simply be attributed to government housing policy.

The report indicates that labour-market income growth has played a substantial role in recent affordability improvements, while underlying regional supply constraints remain.

“The national numbers give us the big picture. The regional numbers show us what people are actually experiencing.”

What happened to rents over the same period?

The longer-term rent figures provide another revealing perspective.

Nationally, weekly rents increased from $542 in May 2019 to $630 in November 2023 - an $88 increase. From November 2023 to June 2026, the national figure increased by a further $5 to $635.

But once again, the national average hides some significant regional differences.

Wellington rents increased from $556 in May 2019 to $712 in November 2023 before falling to $628 by June 2026 - an $84 reduction from their November 2023 level.

Hawke’s Bay moved from $415 to $621 between May 2019 and November 2023 and has since remained virtually unchanged at $620.

Meanwhile, other markets have continued climbing. Otago increased from $524 in November 2023 to $626 in June 2026, while Southland rose from $449 to $504.

-$84 per week Change in Wellington's weekly rent | November 2023 to June 2026

For rental property owners and investors, the message is important: What’s happening nationally may look very different from what’s happening in your own backyard.

A national rental figure provides useful context, but property decisions ultimately play out locally. Tenant demand, employment, new housing supply and rental availability can vary considerably between towns, cities and regions.

So, is renting becoming more affordable?

In many parts of New Zealand, yes, but the answer deserves context.

The past year has brought broad improvement, with higher earnings and softer rental growth taking some pressure off households.

But the longer-term findings show that significant regional gaps remain. They also demonstrate why rental affordability can't be explained by one government, one policy or one market force.

Interest rates, migration, wage growth, housing construction, investor confidence, property values, regulation and the supply of available rental homes can all influence the market.

And ultimately, there is one issue sitting at the heart of a sustainable rental sector: having enough quality homes available for the people who need them.

“Long-term rental affordability depends on an adequate supply of quality housing.” - David Faulkner, General Manager Property Management, Property Brokers

Local markets matter more than ever

For rental property owners, the latest figures are a useful reminder that decisions shouldn't be made on national headlines alone.

A market experiencing flat rents may still offer a very different investment environment from one where rents are increasing but local earnings are keeping pace. Changes in vacancy levels, employment, housing supply and tenant demand can materially alter the outlook from one region to the next.

That's where good local knowledge counts.

With Property Brokers teams deeply connected to communities across provincial New Zealand, we see these differences playing out at ground level - from changing tenant demand and rental expectations to the pressures facing landlords and the opportunities emerging for investors.

The national numbers give us the big picture. Understanding what’s happening in your local market is what turns that information into something useful.

If you're considering your next move, reviewing the performance of an existing rental property or simply want to understand what changing market conditions could mean for your investment, talk to your local Property Brokers property management team.

Dig deeper into New Zealand's regional rental market

Want to see how your region compares? The latest Regional Rental Report explores rental affordability, weekly rents and earnings across New Zealand's regions, alongside longer-term analysis of how the rental market has changed between 2019 and 2026.

Want to know more about Property Brokers' superior property management service? Check out our FREE guide here!