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Positive signs emerge as Wellington heads towards the summer rental season!

After what has been a challenging period for Wellington’s rental market, we’re pleased to report that there are some encouraging signs of improvement as we move further into spring and towards the traditionally busy summer leasing period.

Throughout much of 2025 and the first half of 2026, Wellington experienced an unusually high number of available rental properties, giving prospective residents considerably more choice and placing downward pressure on rental prices. For many property owners, this meant longer vacancy periods, increased competition and the need to be more flexible with rental expectations.

However, we’re now beginning to see a shift in market conditions, with enquiries increasing, rental stock gradually reducing and well-presented, appropriately priced properties attracting stronger interest.

Rental supply is beginning to tighten

The latest Trade Me Property figures, taken on 27 October, show there are currently 1,620 residential rental properties advertised across Wellington City, the Hutt Valley, Kāpiti Coast and Horowhenua, with Wellington City accounting for 1,053 of these.

During the past week, 312 rental listings were removed from Trade Me while 285 new properties were advertised, representing a small but encouraging reduction in available stock.

The same data shows that properties currently advertised have been on the market for a median of 21 days. Across our own portfolio, we’re also experiencing stronger enquiry and improved leasing activity compared with earlier in the year.

What is happening with rental prices?

Following an extended period of subdued rental growth, there are some early indications that prices may be beginning to stabilise.

Trade Me’s August Rental Price Index recorded Wellington’s median advertised weekly rent at $600, an increase of $10 per week compared with the same period last year.

Of course, Wellington is not one single rental market, and conditions vary considerably depending on the suburb, property type and price point.

Te Aro currently has the greatest number of available rentals in the region, with 147 properties advertised at a median asking rent of $570 per week. At the higher end of the market, suburbs such as Northland, Khandallah and Eastbourne continue to command considerably higher asking rents.

One thing that hasn’t changed is the importance of getting the asking rent right from the outset. The latest Trade Me figures show that where landlords have reduced their advertised rental price, the typical reduction has been $25 per week, or approximately 4%.

This reinforces something we’ve been discussing with our owners for some time. Securing a suitable resident promptly at a realistic market rent will often achieve a better overall financial result than holding out for an additional $20 or $30 per week and potentially experiencing several extra weeks of vacancy.

What properties are attracting the most interest?

Across our portfolio, two-bedroom properties continue to be among the most popular options, particularly those in convenient city-fringe locations or close to public transport and amenities.

As we move towards summer, we’re also seeing increased interest in larger family homes, particularly those offering good outdoor living spaces and off-street parking.

At the higher end of the market, our work with diplomatic missions, embassies, corporate clients and relocating families continues to generate strong enquiry for quality executive accommodation. These clients are often seeking longer-term arrangements, sometimes spanning three to five years, providing greater tenancy stability for owners of suitable properties.

We’re also beginning to see early interest from students looking ahead to the 2027 academic year.

Looking ahead to summer and 2027

Traditionally, November through February is one of Wellington’s busiest leasing periods, and we’re cautiously optimistic that the upcoming summer will bring stronger activity than we’ve experienced over the past year.

Another factor that could influence the market is the upcoming general election on 7 November.

We’re aware of a number of property owners who are holding off on making decisions until the election outcome is known, particularly those considering relocating, selling or renting out their family homes.

With potential changes to housing, tenancy and tax policies influencing these decisions, we anticipate that greater clarity following the election could prompt a noticeable increase in activity, including additional properties coming to the rental market.

While this could create some additional competition between landlords, the timing alongside the traditionally busy summer leasing season may help absorb some of that new supply.

Although we’re not expecting every segment of the market to recover at the same pace, the signs are certainly encouraging.

For owners considering bringing a property to the rental market, presentation, realistic pricing and good marketing will remain essential.

At Tommy’s Property Management, our focus remains on securing quality residents, minimising vacancy periods and achieving the best possible long-term outcomes for property owners.

After a challenging couple of years, it’s refreshing to see some positive momentum returning to Wellington’s rental market, and we’re looking forward to what we hope will be a strong finish to 2026 and a positive start to 2027.