Understanding Wellington's Different Rental Markets: A Suburb-by-Suburb Guide
Wellington’s rental market is undergoing a sharp recalibration.
As outlined in our State of the Wellington Rental Property Management 2024-2025, the balance between supply and demand has shifted significantly. According to TradeMe figures, rental supply is up by 41%, with over 1,600 properties currently listed across the Wellington region. This increase in listings comes at a time when economic conditions and public sector cutbacks are reducing tenant demand.
As a result, many landlords are adjusting their strategies, offering incentives like grocery vouchers or a week of free rent rather than reducing rental prices outright.
2025 has also brought legislation changes that are reshaping the rental landscape. New rules around notice periods and pet permissions add complexity to an already shifting market.
With the rental environment becoming increasingly competitive, suburb selection has never been more critical. Each area of Wellington presents different opportunities and risks. In this guide, we break down the rental trends, growth indicators, and yield ranges by suburb to help property investors maximise their rental returns.
Wellington Central
Wellington Central is one of the most active and dynamic rental markets in the region, driven by its high-density living and proximity to parliament, universities and the corporate sector. The predominant property types here are apartments and compact units, many of which are new builds or refurbished character buildings.
The area attracts a diverse mix of tenants. Young professionals, government workers, and students from nearby Victoria University. Its proximity to the CBD and campus also appeals to corporate tenants and short-term contractors seeking furnished rentals.
Rental Yields and Average Weekly Rent:
Gross rental yields in Wellington tend to be higher than in Auckland, ranging between 4% and 5.5%, with small units often yielding slightly higher returns.
Average weekly rent in Wellington Central varies depending on the size and condition of the property. Studio apartments typically rent for $400-500 per week, while one-bedroom units range between $520-$580. Two-bedroom apartments can attract $630-$715 per week, depending on location and amenities.
| Apartment | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 1 Bedroom | $399 | $460 | $525 |
| 2 Bedroom | $550 | $635 | $715 |
| 3 Bedroom | $539 | $735 | $1013 |
| 5+ Bedroom | $813 | $1000 | $1270 |
| House | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 1 Bedroom | $430 | $490 | $560 |
| 2 Bedroom | $515 | $558 | $596 |
Source: Tenancy.govt.nz (June 2025)
There is currently a glut of available apartments, particularly newly completed builds, creating a high-choice environment for tenants. This has increased competition among landlords, especially for smaller, unfurnished units. Vacancy rates have increased slightly as tenants weigh their options and negotiate for better deals.
Property Management Considerations:
Due to the transient nature of the tenant base and high turnover rates, property management in Wellington Central requires active and responsive management. Furnished apartments are particularly attractive to corporate tenants and students, but they also come with more frequent lease changes, which in turn require frequent inspections and timely maintenance.
Multi-unit buildings come with body corporate rules and shared maintenance responsibilities. Renovations and insurance require careful attention, and tenants frequently ask about EQC (Earthquake Commission) ratings due to the area’s seismic risk.
Investment Considerations:
Wellington Central offers both upside and risk for investors. Demand remains strong for smaller, furnished apartments, supporting solid rental yields. However, a surge in new builds has saturated the market, increasing competition and putting downward pressure on rents, especially during economic slowdowns.
Body corporate fees, seismic compliance costs, and ongoing maintenance should all be factors in the long-term investment strategy.
Growth Indicators:
Victoria University and Massey University are projecting an increase in student enrolments, which will boost demand for central rentals. Population growth projections for Wellington Central also suggest a steady increase in long-term rental needs.
Contact our Wellington Central property management team for tailored advice or to request a free rental appraisal.
Northern Suburbs
The northern Wellington suburbs are popular for renters seeking space, community and proximity to the city. These properties are largely residential, standalone family homes, townhouses, and multi-bedroom units.
Rental Yields and Average Weekly Rent:
The average weekly rent for a three-bedroom house ranges between $680 and $760, offering a more affordable alternative to Wellington Central. The gross rental yield in the Northern suburbs is around 4.2%.
| House (Newlands) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 2 Bedroom | $550 | $588 | $630 |
| 3 Bedroom | $650 | $690 | $730 |
| 4 Bedroom | $720 | $850 | $1065 |
| 5+ Bedroom | $860 | $890 | $1000 |
| House (Khandallah) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 2 Bedroom | $600 | $623 | $715 |
| 3 Bedroom | $733 | $798 | $828 |
| 4 Bedroom | $850 | $970 | $1050 |
| House (Johnsonville) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 1 Bedroom | $410 | $473 | $503 |
| 2 Bedroom | $550 | $598 | $630 |
| 3 Bedroom | $680 | $725 | $770 |
| 4 Bedroom | $780 | $820 | $875 |
Source: Newlands (Tenancy.govt.nz), Khandallah (Tenancy.govt.nz), Johnsonville (Tenancy.govt.nz) - June 2025
With strong school zones and a reputation for quiet, family-friendly living, these suburbs have consistent demand from long-term tenants. Infrastructure upgrades, such as improvements to State Highway 1 and the Johnsonville rail line, have enhanced accessibility to the CBD, making these suburbs increasingly attractive to commuters.
The tenant demand is strong for larger homes suitable for families, with lower vacancy rates compared to city apartments. Local amenities, including shopping centres, schools, and parks, further drive tenant interest.
The tenant demographic includes families looking for space and good schools, young professionals seeking more affordable options than the inner city, long-term tenants who prioritise stability and lifestyle, and first-home buyers testing the area before committing to ownership.
Property Management Considerations:
Tenants in this area are likely to have children or pets, requiring regular inspections to ensure upkeep of larger outdoor areas and the condition of the home. Fencing, heating, and insulation are key to attracting quality tenants and maximising your rental yield.
Investment Considerations:
The Northern suburbs are an affordable option compared to Central Wellington. Infrastructure improvements have increased accessibility, particularly with the upgraded Rail line. While flood-prone areas require a risk assessment, the overall risk profile is balanced by consistent demand and low vacancy rates. Being close to commercial hubs adds to tenant appeal.
If you want to ensure your property stands out, get in touch with our Northern Suburbs team for expert advice and a free rental appraisal.
Lower Hutt
Lower Hutt offers a diverse mix of property types, including standalone homes, multi-unit townhouses, and apartments across suburbs such as Petone, Avalon and Wainuiomata.
Weekly rent varies for the different property sizes and types.
Rental Yields and Average Weekly Rent:
The gross rental yield in Lower Hutt is currently around 3%.
| House (Lower Hutt) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 2 Bedroom | $580 | $630 | $650 |
| 3 Bedroom | $700 | $770 | $820 |
| Apartment (Lower Hutt) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 1 Bedroom | $320 | $420 | $445 |
| 2 Bedroom | $596 | $620 | $680 |
Source: Tenancy.govt.nz (June 2025)
Tenant demand is driven by lifestyle appeal, space, and good transportation options. Queensgate mall, local cafes, parks, and health services offer everyday convenience, while great schools and family-friendly activities help drive long-term tenant retention. Target tenants include families needing space, young professionals seeking better value, prospective first-home buyers testing neighbourhoods before buying, and government workers who don’t mind the commute.
Investment Considerations:
Properties in Lower Hutt benefit from hands-on management, especially in areas with older housing stock that may require more frequent maintenance. Pet-friendly rentals, heating standards, and flood zone awareness are common tenant concerns.
Lower Hutt remains more affordable for property investors at lower entry points, offering the potential for higher yields. Infrastructure projects such as the Riverlink development promise improved flood protection, reducing the risks to tenants. Lower Hutt has a strong commercial and retail status, supporting stable rental demand and long-term growth.
Ready to make the most of your Lower Hutt investment? Contact our local property management team for expert guidance and a free rental appraisal.
Upper Hutt
Upper Hutt continues to attract renters and investors seeking more space, better value, and a lifestyle shift away from the hustle of central Wellington. With larger homes, family-friendly neighbourhoods, and access to nature, this area is especially popular among growing families, lifestyle renters, commuters who rely on the train and first home buyers testing the area.
Rental demand in Upper Hutt has remained consistently strong, with steady rental growth supported by infrastructure upgrades and affordability compared to Wellington Central. Vacancy rates remain low, especially in well-connected areas near transport routes.
Rental Yields and Average Weekly Rent:
The gross rental yield in Upper Hutt for houses is 4.7%, 4.86% for townhouses and 5.56% for units. The average weekly rent is $700 for houses, $635 for townhouses and $510 for units. (source: Real Estate Investar)
| House (Upper Hutt) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| All Bedrooms | $360 | $575 | $640 |
Source: Tenancy.govt.nz (June 2025)
Investment Considerations:
Upper Hutt’s lower entry prices provide attractive returns for investors however, older homes will require more frequent maintenance and upgrades, with some areas prone to flooding. Growth remains tied to continued infrastructure investment and connectivity to Wellington.
If you have a property that requires a more hands-on service, contact our Upper Hutt property management team today.
Kapiti Coast
The Kapiti Coast offers a mix of seaside lifestyle and residential stability, with a range of properties from beachside bungalows to modern family homes.
Rental Yields and Average Weekly Rent:
The gross rental yield in the Kapiti Coast is 4.27%. The average weekly rent varies between $575 to $680 per week.
| House (Paraparaumu) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| All Bedrooms | $360 | $575 | $640 |
Source: Tenancy.govt.nz (June 2025)
The region has benefited from Transmission Gully’s completion, improving connectivity to Wellington and interest from remote workers, retirees, and lifestyle-focused renters.
Tenant demographic includes retirees, young professionals, young families and those seeking a relaxed coastal lifestyle.
Investment Considerations:
Transmission Gully has significantly reduced travel time to Wellington, enhancing Kapiti’s accessibility and making it an increasingly attractive choice for commuters. As a result, the area has seen a growing population and increasing demand for both rental properties and housing, positioning Kapiti for continued long-term growth.
Coastal property buyers should be aware of climate exposure risks such as rising sea levels and storm surges. Insurance premiums may be higher, and flood risk assessments should be factored into any investment decision.
Contact our local Kapiti team for tailored advice on how to best maximise yield for your Kapiti property.
Porirua
Porirua offers a wide variety of housing, from entry-level homes to new builds. Weekly rents for three-bedroom homes range from $700 - $750, depending on the suburb and property age.
Rental Yields and Average Weekly Rent:
The gross rental yield in Porirua sits around 3.9%. The average weekly rent for a 3-bedroom home ranges between $700 to $780.
| House (Porirua - Whitby) | Lower Quartile | Median Rent | Upper Quartile |
|---|---|---|---|
| 2 Bedroom | $540 | $625 | $643 |
| 3 Bedroom | $700 | $743 | $780 |
| 4 Bedroom | $820 | $850 | $895 |
Source: Tenancy.govt.nz (June 2025)
Porirua tenants often include families, first-home buyers testing the area, government employees and defence force personnel stationed nearby.
Investment Considerations:
Porirua offers affordability compared to Wellington’s core suburbs, and benefits from new motorway connections and housing developments.
The mixed housing stock offers potential for investors, with opportunity for renovation-based value-add strategies. Additionally, continued urban planning and public investment signal future growth potential.
With these factors combined, Porirua offers potential for health rental yields. Reach out to our Porirua team for a custom assessment to see where value can be maximised and learn how we can help you make the most of this growing market.
Protect your Investment with Property Management Specialists
Wellington’s diverse suburbs offer a wide range of opportunities for rental property investors, whether you’re targeting city-based professionals, families seeking space, or tenants drawn to lifestyle locations. From central city apartments to family homes in the Hutt Valley or coastal escapes on the Kapiti Coast, the region caters to every investment strategy with the right approach.
Professional property management in Wellington is essential for maximum rental yield through reduced vacancy rates, improved tenant quality, and increased long-term returns. Our experienced local team understands the nuances of each suburb and can provide tailored guidance to maximise yield.
Ready to maximise your rental property? Contact us for a free rental appraisal and risk mitigation for your Wellington suburb.