Landlords Urged to Negotiate Rents as Prices Decline

Housing policy expert Stuart Donovan has highlighted the necessity for landlords to negotiate rental prices, following his personal experience of seeking a rent reduction. After being denied a request for a decrease, Donovan and his partner decided to move to a new property, prompting their previous landlord to readvertise the rental at a lower rate.

Donovan, who works as an economist for Motu Research, and his wife relocated from Brisbane a year ago, settling in Island Bay. They initially paid $1,250 per week for their home. However, upon renewal of their tenancy, Donovan requested a reduction of $50, citing a recent trend of falling rents in Wellington. “We approached them to discuss the rent in line with market conditions, but their answer was no,” he said. With disappointment, they began searching for alternatives.

They eventually found a property in Berhampore that was available for approximately $400 less per week, a significant reduction of around 30%. Donovan noted, “Now the Island Bay property is back on the rental market at $1,100. They refused to negotiate and now have to re-let the place, incurring costs associated with that.”

Recent data from realestate.co.nz indicates that the average weekly rent across the country has dropped by 2.4%, now sitting at $626 per week. Specifically, Wellington has seen a notable decline, with rents falling 8.4% to an average of $663 per week. The number of available rental properties has surged by nearly 20% year-on-year, with over 5,000 listings currently on the market. In Wellington, there has been a remarkable 91.5% increase in rental stock, with 925 properties available.

Vanessa Williams from realestate.co.nz stated that the increase in listings is providing renters with more options and potentially greater negotiating power. She noted, “The rental market continues to be awash with properties, with the number of new rental listings increasing 19.8% in December 2025 compared to the previous year.”

Amid these changes, some landlords are adjusting their rental strategies. One Wellington couple reported being unexpectedly informed by their landlord that their rent would be lowered “in line with market rentals,” despite not having requested a reduction. Donovan remarked that the local rental market is experiencing shifts due to various economic factors, including public service cuts and an increase in housing supply from a new district plan that has been in effect for over a year.

As of October 2025, Wellington City witnessed a 79.5% increase in consented dwellings, according to Sean Audain, Wellington City Council’s strategic planning manager. He noted that the region’s overall consented dwellings had risen by 25%. While these figures indicate growth in housing availability, Donovan cautioned that some landlords may not be fully aware of the market’s current dynamics.

Renters United president Luke Somervell emphasized the importance of negotiation in tenancy agreements. He stated, “It’s a tenancy agreement and open to negotiation between two parties,” although he acknowledged that a culture of negotiation is not prevalent. Somervell also pointed out that many renters may hesitate to ask for reductions due to fears of repercussions, especially given the recent rollback of renters’ rights.

The ongoing changes in the rental market signal a shift that may require landlords to reassess their strategies to retain tenants. As the dynamics evolve, both landlords and tenants are encouraged to engage in open discussions about rental prices to navigate the current landscape effectively.