While Realestate.co.nz recorded a drop in stock levels of homes for sale in Waikato in December, renters in the region have been spoilt for choice during recent months. Jon Rawlinson reports.
Waikato ‘awash with rentals’
As ‘generation rent’ gives up on the Kiwi dream of owning their own homes, property owners are renting rather than selling and rental numbers have soared. It’s logical, it adds up, but it’s not accurate, as Vanessa Williams from Realestate.co.nz confirms.
“The percentage of New Zealanders who own their own home has been pretty consistent – the data doesn’t suggest that, on a national level, we have fewer people buying homes,” she says.
“Most people probably will buy a house when they get into their mid-thirties, when they’re ready to settle down. We have more young people with more options who may do things a little differently than we did, but the culture of homeownership in New Zealand hasn’t changed.”
New Zealand could see a growing number of people becoming lifelong renters down the track, but it’s not happening yet.
Waikato ‘awash with rentals’
Waikato ‘awash with rentals’
Data from Realestate.co.nz shows that some regions (including Waikato) registered a rise in the number of available rentals towards year end. Total rental stock nationwide was up 17.4 per cent in November compared to the same time in 2024 with a 12.4 per cent increase in newly listed rentals for the same periods. Waikato’s rental listings increased by 12.3 per cent.
Although this doesn’t mean Kiwis are giving up the dream of home ownership completely, it does indicate stronger demand for rentals.
A net population loss is also influencing the rental market as more people in the key demographic for renting (20-39-year-olds) move offshore. Others appear less inclined to clip their apron strings quite so soon as previous generations.
“Because of how expensive the cost of living has been over the last couple of years, there are fewer people moving out of home, and house prices have not moved much if not dropped considerably since the peak at the beginning of 2022,” Williams says.
“So, more investors who want to sell are keeping their properties on the rental market because they haven’t seen the capital gains that they would have realised in the past. This means that not only is there a reduction in demand but also an increase in supply at the same time.”
Higher supply and lower demand appears to have influenced the cost of renting – Realestate.co.nz data recently recorded a slight decrease in the national average rental price of 1.8 per cent since the same time last year.
“Over the past 10 years, the national average weekly rental price has shown consistent growth,” says Williams. “To see it fall 1.8% between 2024 and 2025 is a clear signal the market has shifted.”
Down 0.1 per cent, Waikato rental rates are in step with national trends.
The national rental market is continuing to sway in tenants’ favour adds Realestate.co.nz CEO, Sarah Wood.
“With more rental properties on the market than ever before, the dynamic between landlords and tenants is changing. It’s a rental market reset and everyone in the sector will need to adapt.”
Vanessa Williams
