Rental prices have fallen to an eight-month low, according to Trade Me’s latest Rental Price Index.

The median weekly rent in September was $630, down $10 or 1.6% from August and the lowest since January 2024. Prices remain 1.6% higher compared to September 2023.

The biggest decreases in rents were in Marlborough which saw prices fall $30 from August to $550 per week, Canterbury which was down $25 in September to $565 per week and Hawkes Bay where rent fell from $650 in August to $640 in September.

On the flip side, Northland saw rents increase by $20 between August and September to $620 a week and both Nelson/Tasman and Southland recorded $5 increases month-to-month to sit at $575 and $475 respectively.

Trade Me Property Customer Director Gavin Lloyd says as summer rolls around rental prices generally go up, but with demand continuing to soften it makes for interesting market dynamics.

“There’s a few reasons driving the surplus supply, including record numbers of people, particularly younger people, leaving the country while others are choosing to stay at home longer or live with relatives while unemployment and the cost of living both remain high.”

Rental prices have dropped around the county.

Auckland and the Bay of Plenty share top spot as country’s most expensive

Rents in Auckland fell $5 from August to $670 in September - the lowest they’ve been in nine months and now in line with what tenants in the Bay of Plenty can expect to pay.

“We’ve seen prices in Auckland come down for the past three months whereas those in the Bay of Plenty have shown a lot more stability, recording no change for the past four months,” says Trade Me Property Customer Director Gavin Lloyd.

“Coming out on top as the most expensive spot to rent is a race no tenant wants to win but comparing the prices paid in Auckland versus the Bay of Plenty isn’t entirely comparing apples with apples as you could expect to get a lot more house for your money in the bay.”

Otago and Wellington sit in the second spot at $650 per week, both flat month-on-month and Hawke’s Bay in third place at $640 - $10 down on August’s $650 per week.

Supply continues to soften after historic highs

Following record rental listings in July, supply has continued to soften and fell -1 per cent between August and September.

“While we’ve seen the number of listings fall 4.4 per cent since skyrocketing mid year, listings remain +44 per cent up on the same time last year meaning there’s still plenty of rental properties available for those seeking a new place to call home.”