Residential rental market – positive signs for property investors
The national median residential weekly rent held at $620 per week in February for the third month in a row, according to Trade Me’s latest Rental Price Index. Year-on-year, the national median rent is down 2%. Auckland sits at $660, down just 1% year-on-year, while Wellington has seen the most dramatic shift, falling 6% to $620 per week. Southland is bucking the trend with rent up 2% YOY to $480.
Interestingly, the supply picture is starting to shift. Year-on-year, Trade Me reports that new listings to their site are down 5% in February 2026 for the whole of New Zealand, while tenant demand (search activity) is up 6%.
As of today, there are 5,263 rental listings on Trade Me in Auckland, compared with 5,856 in the same week last year, representing a 10% decrease in supply, which is a shift in the right direction for landlords.
At Aspire, we’re seeing properties tenant more quickly than in 2025 and with fewer rent reductions. Our median days on market sits at 16 so far in 2026, compared with 22 at the same time last year, and well below the current industry average of 22 days. In January and February 2025, the average rent reduction from initial listing price was $50, and in the same period this year, it’s just $28. We have been very busy in the lettings team, renting 84 properties this year already, and we have 55 currently on the market.
Commercial property update
Industrial properties continue to lead the commercial market, with strong demand and landlords able to lease without heavy incentives. Well-maintained properties with practical upgrades are still outperforming those left looking tired.
The broader market has shifted though. While the year started strongly with sales yields firming, we’re now seeing both tenants and investors taking a cautious approach ahead of this year’s election and potential policy changes, including capital gains tax. Office leasing remains slower, with landlords typically needing to offer incentives like one month’s rent-free per year of the lease term.
On the retail front, Aspire is bucking the trend with a notable uptick in enquiries on vacant retail premises. The landlords seeing results are the ones investing in cosmetic refurbishment and offering decent incentives, typically four to six months rent-free on a three-year lease.
If you’re interested in commercial property, speak to Lauren Daly or Blake Greenhalgh. We can also assist with commercial property investment, helping you right throughout the acquisition process.
Migration – some good news!
Net migration into New Zealand slowed dramatically through 2025. Stats NZ’s latest figures, released on 13 February 2026, show a net migration gain of just 14,200 for the 2025 calendar year, down from 23,800 in 2024 and a world away from the record 135,500 recorded in the year to October 2023. This is the lowest annual net migration gain since 2013 (excluding the pandemic-affected year of 2021).
The decline was driven by 6% fewer migrant arrivals combined with departures rising 1% to a provisional calendar-year record. Since January 2022, there has been a cumulative net loss of 162,000 New Zealand citizens, though net departures have eased slightly, from 43,700 in 2024 to 40,000 in 2025.
On a positive note, non-citizen arrivals are now trending upward again, with 107,800 arriving in 2025. ASB economists have described this as a sign the “tide has turned,” reflecting an improved economic outlook for 2026.
Lower migration directly reduces demand for rental housing and has been a key factor behind softer rental conditions. However, if the recent uptick in arrivals continues, we may see demand gradually firming as the year progresses.
Source: stats.govt.nz
Housing supply – building consents
Nationally, 36,619 new dwellings were consented in 2025, up 9% on 2024, with consent numbers particularly strong in the second half of the year. Auckland was a key driver of that growth, with new dwelling consents up 12% year-on-year. Waikato also saw solid growth at 11%. The Bay of Plenty, however, went against the trend with a 13% decline in new dwelling consents, the fourth consecutive year of falling numbers in the region.
Across the country, stand-alone houses remain the most popular dwelling type consented, but only just, with townhouse consents close behind. Apartment consents had the highest growth rate, up 19% on 2024. Developers have been encouraged by the falls in interest rates over the past year, which have reduced financing costs.
Interest Rates and Investor Confidence
The OCR was held at 2.25% at the Reserve Bank’s February meeting, the first decision under new Governor Anna Breman. The RBNZ has now cut the OCR nine times since August 2024, bringing it down from a peak of 5.50%, and the average mortgage rate has declined to around 5.1%.
Rates are likely to stay around current levels for some time, with the next move more likely to be up than down. ANZ expects the first hike in December 2026, and 1-year fixed rates may start edging up by mid-year as markets price that in.
LVR restrictions were eased from 1 December 2025, giving banks more flexibility to lend to both owner-occupiers and investors. Interest deductibility has also been fully reinstated. The result is that investors are coming back. Cotality’s data shows mortgaged investors now account for around 25% of property purchases nationally, up from a low of 20% a couple of years ago. In Auckland it’s 25.9% and in Hamilton 28.5%. The biggest driver is the reduction in the weekly top-up needed to service a rental. When rates were above 7%, that top-up might have been $400 to $500 a week. Now it’s closer to $200.
It’s worth noting that 2026 is an election year, and property tax settings including capital gains tax and interest deductibility are likely to be campaign talking points, which may create some uncertainty later in the year.
Many of our owners are already expanding their portfolios or planning to do so. If you’re considering adding to yours, contact Sam Hewestson for any questions regarding buying or selling properties.
Source: Cotality
New pet rules
New pet consent and bond rules came into effect on 1 December 2025, and they’re worth understanding whether you’re a landlord or a tenant. Under the new rules, tenants can request to keep a pet and landlords can only refuse on reasonable grounds (such as the property being unsuitable or body corporate restrictions). Landlords must respond in writing within 21 days.
The upside for landlords is that you can now charge a pet bond of up to two weeks’ rent, on top of the standard four-week bond. This gives you genuine financial protection against pet-related damage, which wasn’t available before. Tenants are also explicitly liable for all pet damage beyond fair wear and tear, and landlords can claim directly from the pet bond without needing to go through insurance first.
In the current market, being open to pets is also a smart strategy for reducing vacancy. Pet owners tend to stay longer in a property, which means less turnover and fewer re-letting costs. If you have questions about how the new rules apply to your property, talk to your property manager.
At Aspire we have had only three existing tenants request to have a pet, and only one was declined where there was a body corporate rule stating no pets. So as you can see the change hasn’t been overwhelming for existing tenancies, but we will see more new tenants request to have a pet than we have previously.
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