# Wellington Rental Market Recovery Expected as Demand Rises

**[Wellington’s rental market](https://www.indianweekender.co.nz/news/wellington-rental-market-recovery-expected-as-demand-rises)** is heading into 2026 with renewed momentum, as demand rises sharply after an unusually subdued year. According to reporting by Sophie Trigger from 1News, the capital is entering its busiest flat-hunting season with clear signals that the balance is shifting once again.

The past year was far from typical for Wellington landlords. In 2025, median weekly rents dropped from $650 to $595 over the 12 months to last November. This contrasted with other major centres, where rents in Auckland remained steady and edged slightly higher in Christchurch. For many property owners, it was a challenging environment.


Adam Cockburn, a salesperson at Lowe & Co and a property investor, described 2025 as a year when conditions strongly favoured tenants. “Throughout 2025, there were multiple stories correctly reporting that the Wellington rental market was very, very tough - not tough for tenants, tough for owners,” Cockburn said.

However, he believes that narrative is changing. “That was a story of 2025, and the story now so far at least in early January 2026 is that of a recovering rental market,” he explained.

**Students Return, Demand Rebounds**
One of the biggest drivers behind the recovery is the return of students to the private rental market. Following Covid-related disruptions, many students had remained in halls of residence or alternative arrangements for several years. That trend is now reversing.

“We're seeing a big increase in students coming out of the halls back into the private rental market again for the first time in about five years,” Cockburn said.
Fresh figures from Trade Me support this view. Data from last month shows demand for Wellington rental properties up 16% year-on-year, while listings increased by only 1%. Nationwide, listings rose by 4% and demand by 8%, highlighting how pronounced the shift has been in the capital.

**‘Stressful and Intense’ Flat Hunting**
For renters, especially students, the changing market is already being felt. Students Lilly Malcolm and Trinity Mann described their recent flat search in Wellington as significantly more competitive than in previous years.
Mann said the experience was “stressful and intense,” with multiple viewings squeezed around work and constant pressure to secure a property. “I was so on edge all the time,” she said, noting the need for backup plans if nothing worked out.
Malcolm echoed those concerns, saying that while her group secured the first property they viewed last year, this time they attended around 15 viewings before finding a place. “If we don’t have anything by the end of this week, we need to start thinking about who we can stay with,” she said during the search.

**A Mixed Picture for Students**
According to Aidan Donoghue, president of the Victoria University of Wellington Students' Association, student flat-hunting experiences remain a “mixed bag.” While prices for larger or upgraded properties are roughly similar to previous years, competition has increased as students cast wider nets to attract landlord responses.
Incentives offered by landlords are also changing. Rather than rent reductions, students are more likely to see offers such as damage forgiveness or gift cards. Donoghue shared that he was once offered damage forgiveness on a cracked stovetop in exchange for extending a tenancy.

**Advice for Landlords and Renters**
Cockburn urged landlords to remain realistic when setting rents, even as the market recovers. “There’s no point trying to hold out for a rent that the market won’t bear,” he said, warning that overpricing can leave properties sitting empty. In some cases, accepting a temporary discount can be more effective than waiting for ideal conditions.

Renters, meanwhile, are advised to think ahead. Cockburn cautioned against stretching finances too far, as rents are likely to rise again over the next 12 months. Choosing a property that remains affordable in a normal market, and negotiating firmly upfront, can reduce the risk of being forced to move again soon.

As Wellington moves into 2026, the rental market appears to be regaining its familiar intensity. For tenants and landlords alike, preparation and realistic expectations will be key.

**FAQs**
**Q1. Why did Wellington rents fall in 2025?**
A combination of reduced student demand, post-Covid shifts, and higher supply created conditions that favoured tenants and pushed rents down.

**Q2. What is driving the rental market recovery in 2026?**
The return of students to private rentals and a sharper rise in demand compared to listings are the main factors.

**Q3. Are rents expected to rise again?**
Industry experts believe rents are likely to recover over the next year as competition increases.

**Q4. What should renters consider right now?**
Renters should budget carefully, avoid overextending financially, and negotiate rents while opportunities still exist.

**Q5. How can landlords attract tenants in a recovering market?**
Pricing realistically and offering flexible incentives can help secure reliable tenants without long vacancy periods.