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Wellington’s rental market has entered 2026 with strong momentum, following a record January for leasing volumes, with February continuing at a similarly high pace across most suburbs.

Despite healthy enquiry, the market is currently slightly more tenant-favoured, with elevated stock levels giving renters greater choice and confidence to compare price, condition, and location. This is influencing tenant behaviour, reinforcing the importance of realistic pricing and strong presentation from the outset. Properties that are priced correctly and presented well continue to lease efficiently, while those entering the market above comparable rent levels are more likely to experience longer vacancy periods or require later price adjustments.

One notable trend this year is the increase in applications from tenants with pets. This shift has been broadly accepted by landlords, particularly where tenants can demonstrate strong references and stable employment. In many cases, pet-friendly homes are benefiting from deeper applicant pools and stronger long-term tenancy outcomes.

We’re also seeing several indicators that suggest the wider property market is settling into a more balanced phase.

The number of rental appraisals requested for bank purposes or sale price comparisons has eased back to more typical levels. This points to reduced pressure on households to sell or refinance, and a corresponding slowdown in renovation-driven activity that was more common during peak market conditions.

At the same time, investor activity appears to be lifting, with an increase in rental appraisals being requested for properties currently on the sales market. This reflects renewed confidence from investors choosing to hold assets, particularly where long-term rental fundamentals remain sound.

We’re also seeing more owner-occupiers, including first-home buyers and those who purchased “forever homes” opting to retain their properties and explore renting instead. This has tended to extend the timeline between appraisal and coming to market, allowing for greater focus on logistics, planning, and presentation before listing.

From a rental perspective, rents have settled into a steadier rhythm. They are no longer inflated by peak-cycle conditions, but nor are they under pressure. While there is still a healthy level of available stock, the market itself feels more settled. Tenants who find a property that meets their needs are acting quickly, and we are increasingly seeing lease terms extending beyond 12 months.

The student-driven surge in enquiry experienced through January and early February is now beginning to taper as university terms commence and most students secure accommodation. Enquiry levels are normalising across the wider market.

We are also continuing to see demand from embassies and international organisations, with multiple long-term leases being negotiated for incoming diplomatic staff, reflecting Wellington’s ongoing role as a key government and international hub.

As we move further into the year, the fundamentals remain clear: accurate pricing, strong presentation, and proactive leasing strategies are the key drivers of success in today’s rental environment.