logo
How long will better times for renters last?

How long will better times for renters last?

RNZ News16-06-2025
More than 7000 rental listings were added to the realestate.co.nz website in May.
Photo:
RNZ
Good news for renters - rents are predicted to remain subdued until well into next year.
Realestate.co.nz said renters were, on average, $1400 a year better off this year than last, because asking rents were falling.
The average rent being asked across the country in May was $633 per week, a drop of $27, compared to the same time in 2024.
That was also the lowest price since December 2023.
Realestate.co.nz spokesperson Vanessa Williams said demand had slowed at the same time that more listings had come to the market.
For the first time in almost a decade, more than 7000 rental listings were added to the site in May, a 21.3 percent increase from the same time last year.
The biggest increase was in Wellington, up 87 percent year-on-year.
"While interest rates are coming down, we haven't seen growth in the sale market," she said. "There's an element of investors not bringing property to market, which can be snapped by first-home buyers.
"The lower end of the market isn't being transacted as much. We haven't seen any growth in property prices for the last well over two-and-a-half years.
"That's an element that's happening."
She said another aspect of reduced demand was that cost-of-living challenges kept people living with their parents longer and also leaving the country.
She expected the for-sale market to pick up in spring, which could mean more investors took their properties out of the rental pool to try to sell them, but she said that was unlikely to feed through to change in the rental market before the end of the year.
Infometrics chief forecaster Gareth Kiernan said the market could stay in tenants' favour even longer.
"Rental growth could remain subdued for another 12-18 months," he said. "Factors likely to limit rental inflation during the rest of 2025 and into 2026 include slower population growth and lower net migration, as well as modest household income growth and the potentially patchy economic recovery.
"Nevertheless, if the labour market begins to gradually recover during the second half of this year, it should help limit some of the downward pressure on rents that we have seen over the last year."
He said lower mortgage rates and the reversal of Labour's less favourable tax rules around investment property were likely to limit the upward pressure on rents due to landlords' rising costs.
"Demand tends to be the primary driver of rents and landlords will charge what the market can bear. In other words, there looks likely to be a measure of consistency between limited cost pressures and modest demand for rental accommodation over the next few quarters."
Cotality chief economist Kelvin Davidson said there had previously been a "big boom" in rents and the ratio of rent to income was at record highs.
"Rents are already pretty stretched, which limits the scope for growth, and it makes sense it's slowed down."
He agreed a drop in migration also reduced demand.
"That's previously been a big driver of it, people wanting to come into the country, but that's really tailed off."
Developers were also renting some newly built properties rather than selling them.
He said tenants wouldn't have to worry about rapid rent increases for some time.
"Unless we get a lot of wage growth, which doesn't seem likely… there's that restraint on tenant affordability."
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Smeg New World giveaway smart move, says marketing expert
Smeg New World giveaway smart move, says marketing expert

RNZ News

time9 hours ago

  • RNZ News

Smeg New World giveaway smart move, says marketing expert

Photo: RNZ / Dom Thomas Being part of New World's latest promo is unlikely to hurt Smeg's higher-end image, even if people are picking up its products for nothing, marketing experts say. The supermarket is offering baking dishes and utensil organisers in return for stickers collected at a rate of one per $20. Some items, such as the cast iron braiser, require cash on top of stickers. Kitchen Things is selling Smeg casserole dishes for more than $450 and a set of three containers for $439. Sarah Dodds, a senior marketing lecturer at Massey University, said it was a smart move for Smeg to be involved in the New World giveaway. "It gives them exposure to a broader target market, a sensible growth strategy in today's market to increase market share. "Although Smeg is typically positioned as a premium, designer appliance brand, partnering with a major supermarket like New World offers widespread visibility across New Zealand, creating brand awareness and interest from aspirational consumers who may not have previously considered high-end appliances." She said giveaways could often generate excitement and goodwill. "Associating the brand with a Kiwi supermarket can personalise the brand and increase its relatability. "The key will be to preserve the brand's premium appeal while benefiting from New World's broad reach to grow the brand in New Zealand. Having said that, New World is positioned as a supermarket that offers quality product and a full-service, premium shopping environment, so in that sense, Smeg fits reasonably well with New World." University of Auckland marketing professor Michael Lee said, if it was a new type of promotion, it could be detrimental to the Smeg brand, but the model was well known. "New World has done enough of these now, all with high-end brands, that they have sort of become pseudo status promoters of the brands involved." Foodstuffs said the promotion was a successful one, with 92 percent awareness among New World shoppers. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

'It's all go, everyone's really buzzing' on Mt Ruapehu
'It's all go, everyone's really buzzing' on Mt Ruapehu

RNZ News

time12 hours ago

  • RNZ News

'It's all go, everyone's really buzzing' on Mt Ruapehu

October at Whakapapa ski field, Mt Ruapehu, 2023. Photo: Supplied/ Ruapehu Alpine Lifts Ruapehu's mayor is happy with how this years ski season is shaping up, under new operators . Whakapapapa Holdings now manages Whakapapa ski field on Mount Ruapehu while Pure Tūroa manages Tūora field. Ruapehu Alpine Lifts (RAL) which oversaw both ski fields, went into insolvency in 2022. Mayor Weston Kirton said while the start of the 2025 season was slow due to low snowfall, things are looking better now. "June was a bit spasmodic but kicked in a bit more with July. So from my understanding is that they're good to go, they've got enough snow to allow people to go up there and enjoy both at the beginning level, if not in the intermediate level. "I think it's all go, everyone's really buzzing, everyone's excited and both sides of the mountain with new ownership, but they got new ideas and I think they've had a huge number of people over the school holidays for example, both visiting and also skiing. "So from the point of view of ski season, we're off to a pretty good start," Kirton said. The Delta Chair is likely to open on Saturday, and Tūora ski field is also opening its upper mountain facilities. Kirton also reflected on the journey to secure government funding that enabled the continued operation of both Whakapapa and Tūroa ski fields following the collapse of Ruapehu Alpine Lifts (RAL). "The snow industry is critical to our economy and regional tourism. It's fantastic to see Whakapapa and Tūroa up and running again, but we must keep building on this success." Kirton said he was hopeful for a few more snowfalls to help extend the season and encouraged people to visit the maunga [mountain] and enjoy all the experiences Ruapehu has to offer - on and off the slopes. He also stressed the need to keep building on the economic momentum generated by the ski areas. "Council is committed to working with government and others to complete our cycle and hiking trail networks which are turning Ruapehu into a true year-round destination while providing much-needed economic resilience." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Taranaki mayors want hydrogen kick-start from Wellington
Taranaki mayors want hydrogen kick-start from Wellington

RNZ News

time15 hours ago

  • RNZ News

Taranaki mayors want hydrogen kick-start from Wellington

Hydrogen is touted as a fuel with lower carbon emissions, especially for fuel-cell powered heavy trucks. Photo: Supplied / Hiringa Energy Taranaki mayors want central government to partner up with their councils to kick-start a hydrogen industry. This despite ongoing questions about the gas's effectiveness in reducing carbon emissions. The Taranaki Mayoral Forum said Wellington should financially back the region as it is the logical base for hydrogen energy production. That work would include both onshore and offshore exploration. As economies attempt to move away from fossil fuels, hydrogen is touted as a lower-carbon-emission alternative with no pollution from the exhaust pipe. It is especially promising for freight trucks, which are hard to power by battery. The mayors' submission to the Ministry of Business, Innovation and Enterprise on regulating hydrogen has admitted drawbacks: hydrogen's green credentials depend on how it's made. The forum emphasised hydrogen is not a silver bullet for climate change - noting that other technologies, scaled-up mitigation and behaviour change were also necessary. Despite those doubts, the mayors enthusiastically pitched Taranaki as New Zealand's best bet for a hydrogen headquarters, asking the government to take "proactive action". "Government support may be required to help kick-start an industry in New Zealand and make sure risks are appropriately managed." The forum is made up of the New Plymouth, Stratford and South Taranaki district mayors and the chair of Taranaki Regional Council. Their submission points to Taranaki's experience in energy production, existing infrastructure, and promising geology - as well as councils' experience in regulating the energy sector. Hiringa Energy's project to make hydrogen at Kāpuni powered by windmills taller than Auckland's Sky Tower defeated a court challenge from Te Korowai o Ngāruahine. Photo: Supplied / Hiringa Energy "We would welcome Taranaki being considered as a home base for this industry." The mayors are clear that iwi and hapū need to be in the room from the start. "The Mayoral Forum supports a regulatory regime that provides mana whenua with early and meaningful engagement," their submission said. "Treaty settlements in Taranaki have clear provisions around oil and gas developments, and [we] recommend that the government consider how best to honour those commitments in regulating hydrogen, even if hydrogen may not strictly fall within definitions in Treaty settlements." Different ways to make hydrogen have varying carbon footprints. Manufacturing demands huge amounts of electricity in a relatively inefficient process: Hiringa Energy is gearing up capacity at Kāpuni to make "green" hydrogen with power from four giant windmills, taller than Auckland's Sky Tower. MBIE is investigating "natural" and "orange" hydrogen. Geological processes in the Earth's crust form natural hydrogen, while the orange version is made by injecting water and carbon dioxide into particular mineral formations to stimulate hydrogen generation. The MBIE paper points to two options to regulate the infant industry: The mayors' submission said mana whenua must be part of talks, whatever officials decide. "Whichever regulatory pathway the Crown adopts regarding the RMA or CMA, discussions will be required with iwi and hapū to define rights to the resource." They also suggest collaboration with local booster agency Venture Taranaki and Ara Ake, the region's nationally-focused energy innovation centre. - LDR is local body reporting co-funded by RNZ and NZ on Air.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store