Wellington Rental Market Report: Q2 2026
Wellington’s rental market showed clearer signs of tightening in July 2026, with the number of properties available to rent continuing to fall sharply. While conditions remain relatively balanced for landlords and tenants, the latest figures suggest competition for well-priced rental properties could begin to increase if supply continues to contract.
Realestate.co.nz recorded a 38.2% year-on-year decline in available rental stock, the second-largest fall of any region in New Zealand behind Otago. Nationally, rental stock dropped to 7,303 properties, its lowest level of 2026 so far, with 13 of the country’s 19 regions recording fewer available rentals than a year earlier.
The decline marks a notable acceleration for June, when Wellington rental stock was already down 25.7% year on year. The latest figures suggest properties are being snapped up quickly, even as new listings continue to come onto the market. Realestate.co.nz described the national picture as one in which tenant demand is beginning to outpace supply in some regions.
Across New Zealand, the average weekly rent rose to $642 in July, its highest level in 15 months. While the July report does not publish a Wellington-specific average rent in its accompanying article, the increasingly limited pool of available properties makes the capital a market worth watching over the coming months.
For Wellington landlords, the result is a market that still rewards good property fundamentals. Homes that are warm, well-maintained, properly presented and priced in line with comparable properties should be well placed to attract suitable tenants, while overpricing can still translate into unnecessary vacancy even in a market with fewer rentals available.
Wellington rental market Q2 2026: key findings
Wellington’s average asking rent was $642 per week in June, up 0.5% year on year.
Trade Me Property recorded a Wellington median weekly rent of $595 for June.
Annual change in average asking rent: up 0.6%
Available rental stock: 805 properties, down 25.7%
New June listings: 537, up 6.8%
Wellington Central median rent: $480 per week over the latest rolling 12 months
Wellington Central median time to rent: 29 days
OCR at the start of Q3: 2.5%
JPM Portfolio Snapshot
| JPM Portfolio Measure | Q2 2026 Result |
|---|---|
| Q2 Portfolio Vacancy Rate | 2.73% |
| Median Achieved Weekly Rent | $618.10 |
| Tenancies Renewed During the Quarter | 33 |
Quick answers: Wellington rental market Q2 2026
What is the average rent in Wellington?
Realestate.co.nz recorded an average Wellington asking rent of $642 per week in June 2026, while Trade Me Property recorded a regional median of $595 per week.
Are Wellington rents increasing?
Wellington rents were broadly stable at the end of Q2. Realestate.co.nz’s regional average increased by only 0.6% year on year. Results differ by location and property type. Wellington Central’s latest rolling 12-month median was $480 per week, down 3% from the preceding 12-month period.
Is the Wellington rental market favouring landlords or tenants?
Neither side holds a clear advantage across the whole region.
Tenants had fewer homes available than a year earlier, but rents had not risen materially. Well-positioned properties could still lease efficiently, while tenants retained the ability to reject homes that appeared expensive for their condition or location.
What is happening with Wellington rental supply?
Available Wellington rental stock fell by 25.7% year on year, even though new listings increased by 6.8% during June.
This means properties continued to enter the market, but the total number available at any one time was significantly lower.
Wellington Market overview:
Rents remained steady
The June figures show a market with limited price movement.
The $642 average reported by realestate.co.nz was only slightly above the previous year. Trade Me’s $595 median also placed Wellington below several higher-priced regions, including Auckland and the Bay of Plenty.
This does not mean every Wellington property should be priced near either figure. The regional results combine apartments, townhouses and houses of different sizes, conditions and locations.
A reliable rent review should consider:
Recently achieved rents for genuinely comparable homes
The number and quality of competing listings
The property’s condition and presentation
Heating, insulation and natural light
Parking and public transport access
Enquiry, viewing and application levels
The likely cost of vacancy
A higher weekly asking rent does not always produce a stronger annual return. On a property renting for $650 per week, one additional vacant week removes $650 from the year’s income before advertising, cleaning or reletting costs are considered.
Supply tightened, but demand did not accelerate
The fall in Wellington’s total rental stock was one of the most significant Q2 movements.
Available properties fell by more than a quarter year on year, even though new listings increased during June. There are several possible reasons a property may leave the available rental pool. It may have been leased, withdrawn, sold, occupied by its owner or moved to another form of accommodation.
Tenant demand remained selective
Trade Me Property reported that rental demand remained strong nationally despite a seasonal decline, while realestate.co.nz’s Wellington analysis indicated that regional demand had eased enough to keep rents relatively stable.
For Wellington landlords, the practical experience is likely to differ between properties.
Homes that offer clear value, good heating, professional presentation and a convenient location may attract suitable tenants quickly. Properties that appear expensive for their condition or location may receive online views without converting those views into applications.
This is why enquiry numbers should not be assessed in isolation.
Landlords and property managers should also consider:
How many enquiries lead to viewings
How many viewers submit an application
Whether those applications meet the required criteria
How the property compares with nearby alternatives
Whether market feedback indicates a pricing or presentation issue
Regional rental market breakdown
Wellington Central has a different rental profile from the wider region. Its market contains a high proportion of apartments and smaller homes, with one and two-bedroom apartments identified as the most popular rental property types on realestate.co.nz.
The latest rolling 12-month data showed:
| Wellington Central | Latest Result |
|---|---|
| Median Rental Price | $480 per week |
| Change from the Preceding 12 Months | Down 3% |
| Median Days to Rent | 29 days |
| Listed for Rent in the Latest Month | 36 |
| Most Popular Rental Types | One and two-bedroom apartments |
The $480 median is considerably lower than Wellington’s regional average and median. However, the difference is largely explained by the types of properties available.
A central-city apartment should be compared with apartments offering a similar number of bedrooms, floor area, furnishing, natural light, parking and building quality. It should not be compared directly with a three-bedroom suburban house.
For Wellington Central landlords, the 29-day median time to rent provides a useful general benchmark. A property remaining available for materially longer may require a review of its asking rent, photography, written listing, viewing process or presentation.
Lower Hutt
Lower Hutt’s rolling median rent was $595 per week, down 14.4%, while its median time to rent was 18 days.
The relatively short leasing period suggests appropriately positioned homes can move efficiently. However, Lower Hutt contains several different submarkets. Petone, central Lower Hutt, Naenae, Waterloo, Wainuiomata and Stokes Valley should each be assessed against local comparables.
Upper Hutt
Upper Hutt’s rolling median rent was $565 per week, down 4.2%, with a median time to rent of 37 days.
There was considerable variation within the wider area. Silverstream recorded a $620 median rent, annual growth of 3.3% and a 22-day median time to rent. This shows why a broad Upper Hutt figure may not reflect the performance of an individual suburb.
Porirua
Porirua recorded a rolling median rent of $770 per week, down 1.3%, and a median time to rent of 21 days.
The figure should be interpreted carefully because the number and type of homes listed can affect the median. Porirua’s individual suburbs differ considerably in property values, housing stock and target tenant groups.
Kāpiti Coast
Paraparaumu recorded a rolling median rent of $640 per week, 0% change, with a median time to rent of 19 days. Three-bedroom houses were the most popular rental property type.
Kāpiti’s rental demand is influenced by families, commuters and people seeking more space or a coastal lifestyle. Long-term rental returns should be assessed separately from short-stay accommodation, which carries different vacancy, furnishing and management costs.
Rental yield and owner returns
Rental yield remains an important consideration for Wellington investors, but headline gross yield should not be viewed as the complete return.
Gross yield compares annual rent with the value or purchase price of a property. It does not account for:
Rates
Insurance
Property-management fees
Repairs and maintenance
Vacancy
Body corporate fees
Healthy Homes compliance
Mortgage interest
Future capital expenditure
The table below uses rolling median rents and sale prices from selected local markets. The indicative yield has been calculated as annualised median rent divided by median sale price.
| Market | Median Weekly Rent | Median Sale Price | Indicative Gross Yield |
|---|---|---|---|
| Wellington Central | $570 | $687,000 | 4.31% |
| Eastern Suburbs | $672 | $937,000 | 3.73% |
| Southern & Western Suburbs | $662 | $900,000 | 3.82% |
| Johnsonville | $680 | $800,188 | 4.42% |
| Lower Hutt | $595 | $725,000 | 4.27% |
| Upper Hutt | $565 | $870,000 | 3.38% |
| Porirua | $770 | $830,000 | 4.82% |
Indicative gross yields are broad market illustrations, not property-level investment returns. Actual yields will vary depending on property type, occupancy, expenses and purchase price.
These are broad illustrations, not property-level investment returns. The properties sold during the period may differ from those offered for rent. Wellington Central’s higher headline figure, for example, may be affected by smaller apartment values and does not account for body corporate levies.
A property with a modest gross yield may still perform well if it attracts stable tenants and requires little unplanned work. Conversely, a high-yield property can underperform if vacancy and maintenance costs are consistently high.
What influenced the market during Q2?
Interest rates and employment
The Reserve Bank increased the Official Cash Rate (OCR) by 25 basis points to 2.5% in July 2026, beginning a move away from the more accommodative settings seen earlier in the year. The Bank said further increases may be needed as it works to bring inflation back towards its 2% target, although the timing remains uncertain. Annual CPI inflation reached 4.1% in the June 2026 quarter, reinforcing the importance of mortgage rates and other ownership costs for landlords when assessing property performance.
New Zealand’s seasonally adjusted unemployment rate also rose to 5.6% in the June 2026 quarter, up from 5.4% in March. Softer employment conditions can affect tenant mobility, household rental budgets and demand for different types of rental property, particularly where affordability is already stretched.
Healthy Homes Standards
All private rental properties have been required to comply with the Healthy Homes Standards since 1 July 2025, unless a valid exemption applies.
The standards cover heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. Landlords must also continue maintaining anything installed to meet the standards. Compliance is a legal requirement, but it also affects how a property competes in the rental market. Warm, dry and well-maintained homes are more likely to provide the long-term living conditions tenants increasingly expect.
Pet consent and pet bonds
The new pet rules introduced on 1 December 2025 continued to shape tenancy management during Q2.
Tenants who want to begin keeping a pet generally need written consent from their landlord. Landlords can refuse only when they have reasonable grounds and may impose reasonable conditions when consent is given.
Where the requirements are met, landlords may also charge a pet bond of up to two weeks’ rent.
Methamphetamine contamination regulations
New methamphetamine contamination regulations took effect on 16 April 2026.
A property is considered contaminated when residue exceeds 15 micrograms per 100 square centimetres. The rules also establish requirements around testing and decontamination.
Bond Hub
From 29 June 2026, all tenancy bond transactions moved online through Bond Hub or integrated property-management software.
Bond Hub can now be used for lodgements, top-ups, refunds, changes of tenant and changes of landlord. The move online is intended to create clearer records and reduce delays caused by incomplete or missing paper forms.
Short-stay accommodation
Wellington City Council proposed a new rates differential for qualifying short-term accommodation, set at 2.6 times the base general rate.
Owners comparing short-stay and long-term rental strategies should include rates, furnishing, utilities, cleaning, platform fees, management time and seasonal vacancy in the calculation.
Outlook for the second half of 2026
Wellington entered the second half of the year with significantly less rental stock than it had 12 months earlier, but without strong rent growth.
The most likely near-term result is a market that remains sensitive to price and property quality. Renters may have fewer options overall, but they are still likely to compare homes carefully before committing.
If tenant demand strengthens before supply rebuilds, the reduction in available stock could place renewed upward pressure on rents. If demand remains subdued, rents may continue to move within a relatively narrow range.
For landlords, the opportunity is not to anticipate a sudden market-wide rise. It is to improve the performance of the individual property through accurate pricing, strong presentation, timely maintenance and tenant retention.
What this means for Wellington landlords
If you are setting rent now
Use recently achieved rents for similar properties. The previous tenant’s rent or the highest nearby asking price is not enough on its own.
If the property is taking too long to lease
Review the entire offer. Rent is important, but poor photographs, limited viewing times, visible maintenance and an unclear listing can also reduce conversion.
If you are considering selling
Compare the property’s net rental return with current sales conditions, future maintenance and your wider financial position. REINZ reported that Wellington sales activity remained subdued in June, while Kāpiti Coast was the only Wellington territorial authority to record annual median price growth.
If you are growing your portfolio
Look beyond the highest headline yield. Tenant demand, property condition, insurance, rates and maintenance can matter more than a small difference in gross return.
If you manage your own property
Ensure your processes reflect the current Healthy Homes, pet, methamphetamine and bond requirements. Good records are now as important as good intentions.
How Just Property Management uses this data
Public reports explain the direction of the wider Wellington rental market. They cannot show exactly where one property sits within that market.
Just Property Management combines external data with live information from more than 500 managed properties across Wellington Central, the northern suburbs, Lower Hutt, Upper Hutt, Porirua and the Kāpiti Coast.
This includes:
Achieved rents rather than advertised rents alone
Time to secure a suitable tenant
Vacancy between tenancies
Enquiry and application quality
Competing listings
Tenant retention
Maintenance requirements
Local demand by property type
This gives landlords a more accurate view of their property’s position and helps JPM make rent and leasing recommendations based on current evidence.
For advice on how your property compares with the current Wellington rental market, contact the Just Property Management team or request a free rental appraisal.