Landlords Urged to Negotiate Rents as Tenants Seek Better Deals

Landlords in New Zealand are facing increasing pressure to negotiate rental prices as tenants become more willing to seek better deals amidst a declining rental market. This trend is exemplified by the experience of housing policy expert Stuart Donovan, who recently sought a rent reduction but ultimately decided to move after his landlord refused to lower the rent.

Donovan and his partner, who relocated from Brisbane to Island Bay a year ago, initially paid $1,250 per week for their rental home. When it came time to renew their lease, Donovan requested a reduction of $50, aware that rental prices in Wellington have been falling. The landlord’s refusal prompted the couple to explore other options, eventually securing a new rental in Berhampore that costs approximately $400 less per week.

Reflecting on their experience, Donovan noted, “We said would you be able to consider the rent in line with market conditions, but their answer was no.” The Island Bay property is now listed for $1,100, highlighting the landlord’s potential loss from not negotiating.

Recent data from realestate.co.nz indicates that the average weekly rent across New Zealand has dropped by 2.4% to $626. In Wellington, rents have decreased by 8.4%, bringing the average to $663 as the number of available rentals surged nearly 20% year-on-year, exceeding 5,000 properties.

The increase in rental stock is particularly notable in Wellington, which has seen a remarkable 91.5% rise in available properties compared to the previous year. The total rental stock across the country has also grown, with a reported 15.9% increase from December 2024.

Central Otago Lakes District remains the most expensive region for rentals, with an average price of $891 per week as of December 2025. This figure represents an 11.8% increase from the previous year.

According to Vanessa Williams of realestate.co.nz, the influx of new listings offers renters greater choice and bargaining power. She noted that new rental listings rose by 19.8% in December 2025 compared to December 2024.

Despite this growing trend, Donovan expressed concern about landlords who may be unaware of these changes. He stated, “Demand is the main driver and supply is starting to come on. We’re not expecting rents to take off, and I think some landlords, if they are not paying attention, have got caught unawares.”

In a recent LinkedIn post, Sean Audain, strategic planning manager for the Wellington City Council, highlighted a significant increase in consented dwellings, which rose by 79.5% in the year leading to October 2025. This growth reflects a broader trend of increased housing availability in the region.

Amid these shifts, Luke Somervell, president of Renters United, emphasized the importance of tenants advocating for themselves. He noted that while many renters fear asking for a rent decrease, the Residential Tenancies Act allows tenants to request a review of rental prices to ensure they align with market conditions.

Somervell stated, “It’s a tenancy agreement and open to negotiation between two parties, but there’s not a culture of that.” He acknowledged that while some landlords may be inclined to lower rents, many do not feel incentivized to do so during an existing tenancy.

As the rental market continues to evolve, both landlords and tenants may need to adapt to the changing landscape, with negotiations increasingly becoming a critical aspect of maintaining occupancy and financial viability.