Landlords Urged to Negotiate Rents Amid Falling Demand

Housing policy expert Stuart Donovan has highlighted the importance of rent negotiations for landlords, especially as rental prices are declining across New Zealand. After he and his partner requested a rent reduction for their property in Island Bay, they were informed that their landlord declined the request. Consequently, they decided to move, leaving their landlord to seek new tenants at a lower price.

Donovan and his wife relocated from Brisbane a year ago, finding a suitable home in Island Bay with a weekly rent of $1,250. When their tenancy renewal approached, Donovan asked for a modest reduction of $50, as he was aware of the falling rental rates in Wellington. “It was weird to experience it first-hand,” he remarked, noting the landlord’s refusal to negotiate. Disheartened, the couple began searching for alternatives.

Their efforts paid off when they discovered a property in Berhampore listed for $400 less per week—approximately 30% cheaper. They successfully applied for the new rental, prompting their former landlord, now facing a more competitive market, to relist the Island Bay property at $1,100 per week.

Current data from realestate.co.nz indicates that the average nationwide rent has decreased by 2.4%, now sitting at $626 per week. In Wellington, the situation is even more pronounced, with rents down 8.4% to $663 per week. The number of available rental properties has surged, increasing by almost 20% year-on-year, with over 5,000 rentals on the market.

Wellington has seen a significant growth in rental stock, with a 91.5% increase in available properties compared to last year. The total stock of rental properties reached 7,577 in December 2025, marking a 15.9% rise from December 2024. Central Otago Lakes District remains the most expensive region to rent, with average prices peaking at $891 per week in December 2025.

Vanessa Williams of realestate.co.nz emphasized that the influx of new listings provides renters with greater choices, potentially enhancing their negotiating power in the upcoming year. “The rental market continues to be awash with properties,” she stated, noting that new rental listings rose by 19.8% in December 2025 compared to the previous year.

Meanwhile, some landlords are adjusting rent prices in response to market conditions. Donovan mentioned an unexpected reduction from another landlord who lowered the rent without a tenant’s request. He attributed this shift to broader economic challenges and the ongoing effects of a new district plan that has facilitated increased housing development over the past 18 months.

According to Sean Audain, the strategic planning manager for Wellington City Council, consented dwellings in the city rose by 79.5% in the year leading to October 2025. This indicates a promising trend in new housing developments, which could further influence rental prices and availability.

Donovan also pointed out that tenants often hesitate to request rent decreases, fearing possible repercussions. Under the Residential Tenancies Act, tenants can petition the Tenancy Tribunal to adjust rent to reflect market conditions, provided they present adequate evidence. Luke Somervell, president of Renters United, encouraged tenants to negotiate, stating that tenancy agreements are open to discussion between both parties. He acknowledged the existing culture of fear surrounding rent negotiations, particularly as renters’ rights have been under pressure.

As rental trends evolve, Donovan warns that landlords who remain unaware of market changes may find themselves in difficult positions. He stressed the necessity for proactive engagement between landlords and tenants to ensure fair and sustainable rental practices.