Clear Trends Are Emerging In The Wellington Rental Market | July 2025
Winter has firmly settled over the capital, and with it come some clear trends in the rental market, along with a major compliance milestone that every landlord needs to be aware of. As of 1 July 2025, all rental properties in New Zealand must comply with Healthy Homes Standards. From this date forward, non-compliant properties cannot be rented or even advertised online. We’re seeing a noticeable backlog across the region as many owners rush to complete work at the last minute, which has created significant delays in securing trades. If your property isn’t yet compliant, we strongly recommend taking action now to avoid extended vacancies and potential income loss.
On the market front, Wellington continues to experience softer tenant demand. Properties are taking around 34 days to rent on average, compared to the usual time of around 21 days. Weekly rents are hovering at approximately $650, down slightly from last year, although Wellington remains one of New Zealand’s most expensive cities to rent in. Enquiry levels are modest, with fewer people attending viewings than we would normally expect at this time of year. That said, well-presented two- and three-bedroom properties close to the city, particularly those with a car park or garage, remain popular, largely driven by professionals relocating for work. In contrast, larger homes at the upper end of the market, especially those priced at $1,500 per week or above, are proving harder to move and often sitting vacant for longer.
This quieter market is the result of a few key factors. Oversupply continues to play a role, with more properties available for rent across the region than in previous years. Seasonal patterns also matter — winter typically brings less movement, and while this year’s dip hasn’t been as sharp as some in the past, it’s still noticeable. Added to that, cost-of-living pressure is causing tenants to be more cautious and selective when choosing their next home.
One clear message we’re hearing from tenants is that comfort and energy efficiency are top priorities right now. Residents are actively using curtains, ventilation, and heating systems to manage warmth and reduce condensation, and they expect these features to work properly. Faulty heating or signs of mould are reported quickly, and tenants want these issues resolved without delay. Healthy Homes compliance is more than a legal requirement — it’s a significant factor in tenant satisfaction and retention. If these standards aren’t met, tenants are far more likely to move on at the end of their lease.
For landlords, this means staying competitive through smart choices. Pricing properties correctly from day one is critical — overpricing leads to longer vacancies, which cost more in lost rent than a small adjustment upfront. Presentation matters too; warm, clean, well-maintained homes not only rent faster but attract better tenants. Proactive maintenance is also key. Responding quickly to heating or ventilation issues keeps tenants happy and reduces long-term costs.
Looking ahead, while July and August are traditionally quieter, we usually see demand begin to pick up as we approach early spring. Now is the ideal time to ensure your property is compliant, consider a refresh of your marketing photos, or look at upgrades that make your home more appealing in a competitive market. We’re seeing strong uptake of our Tommy’s Transformations service as landlords invest in renovations that boost both rental return and capital value — something worth considering if your property could use an update before the spring surge.
Finally, for those considering selling, our sales team reports that buyer demand remains steady even in winter, but there’s a noticeable shortage of quality listings. Well-presented properties are selling well, which means if you’re thinking about reshaping your portfolio, this could be an excellent time to act.
If you’d like a free rental appraisal, help with compliance, advice on improvements, or simply want to chat about the sales market, we’d love to help. Get in touch with our team today and let’s make sure your investment stays ahead of the curve. Check us out at tommysrentals.co.nz