Wellington’s rental market has been a topic of heated discussion in recent years, with affordability concerns at the forefront. Population growth coupled with the increase in rental prices is making it difficult for renters, from students to families, to make inroads in the Wellington rental market.
As experts in Wellington property management, Taylor Property Plus aims to provide an honest assessment of the current landscape for renters in our capital city. Our expert property managers have a thorough knowledge of the wider Wellington rental market and we are well placed to understand the opportunities available for people looking to rent a property in Wellington.
In this guide, we take a closer look at the current rental market in Wellington and provide you with some guidance for finding the right property for you.
The Wellington Rental Market: By the Numbers
Wellington’s rental market has seen significant changes over the past year. As of February 2024, the average house price in Wellington stands at $925,812, marking a 4.1% increase in just seven months. This upward trend in property values has inevitably impacted the rental market.
Rental Prices
The median weekly rent in New Zealand reached $608 in January 2024, representing a $33 increase from the previous year. This 5.7% year-on-year increase outpaces the national average and reflects the ongoing pressure on Wellington’s rental market.
Vacancy Rates
Interestingly, recent data shows a significant increase in rental listings in Wellington. The number of available rentals has risen by a staggering 103% compared to the previous year. This surge in supply has led to a softening of the market in some areas, with some landlords needing to adjust their pricing expectations to secure tenants.
Population Growth
Wellington City’s estimated population was 216,200 in 2023, showing an 8% increase from 2014 to 2023. However, it’s worth noting that domestic migration trends consistently show people moving away from the city, with population growth primarily driven by international migration and natural increase.
The Affordability Challenge
Despite the recent increase in rental listings, affordability remains a significant concern for many Wellington renters. In 2018, two-fifths of renting households in Wellington spent over 30% of their income on rent. This high proportion of income dedicated to housing costs puts considerable strain on many residents’ budgets.
Finding Affordable Options
While the overall market remains challenging, there are steps renters can take to improve their chances of finding more affordable housing:
1. Explore Emerging Areas: With the increase in listings, some previously overlooked neighbourhoods may offer better value. At Property Plus, we have listings available throughout the wider Wellington region and we can talk you through the options that might be best suited to your needs. With excellent transport links across the region, living outside of the main CBD or the traditionally popular areas around the city can help to make renting in Wellington more affordable.
2. Consider Flatting: Sharing costs with roommates can significantly reduce individual rental expenses. Whilst this is not an option for everyone, the city is full of young professionals all looking for places to rent and all facing the same affordability struggles. For families, or even young couples, this might not be an option, however, as you look at suburbs beyond the CBD, larger houses can accommodate a range of tenants without feeling too small so flatting becomes a more viable option for more people as you move away from the CBD.
3. Look Beyond the CBD: As we have already touched upon, suburbs with good public transport links may offer more affordable options while maintaining reasonable commute times. We have rental listings in Horowhenua, Lower Hutt, Porirua, and Upper Hutt as well as the main suburbs of the CBD so there are lots of options available on the Property Plus website.
4. Be Prepared: In a competitive market, having all the necessary documentation ready can give you an edge in securing a property quickly. In a recent post, we took a closer look at the ways renters in Wellington can get ahead of the market and craft a winning rental application in the Wellington market.
The Role of Property Managers
As property managers, we at Taylor Property Plus strive to balance the needs of both landlords and tenants. We’re committed to helping renters find suitable, affordable homes while ensuring property owners receive fair returns on their investments.
While Wellington’s rental market remains challenging, the recent increase in available properties offers a glimmer of hope for renters. By staying informed, being flexible, and working with reputable property management companies, Wellington renters can improve their chances of finding a home that meets both their needs and budget constraints.
Property Managers help to take a lot of the stress out of finding your ideal rental home in Wellington. Whilst a lot of people like to do their own research, looking on sites like TradeMe to discover hidden gems and learn more about the variety of suburbs in the city, a Property Manager can take a lot of this leg work away, helping to present you with properties that are suited to your requirements.
Our Property Managers have helped thousands of people discover their perfect home over the past 20+ years and we are passionate about helping renters to find their dream home in Wellington but also helping landlords to find the perfect match when it comes to tenants for their home.
Remember, the right property is out there – it may just take a bit more patience and persistence to find it in today’s market.
