The new rules of rental
Evolution is key to business growth , and at the core of this transformation is our Ray White Property Management team , fully equipped to guide you through these fast-paced changes and strategically position your assets for success in a market moving swiftly .”
Zac Snelling Head of Property Management Ray White New Zealand
The rental market is no longer the simple ‘ set-andforget ’ game it once was , and in today ’ s climate , landlords increasingly find themselves at the crossroads of opportunity and risk , says Zac Snelling , Ray White New Zealand head of Property Management .
“ Demand has shifted fast , and with a 31 per cent surge in rental listings year-on-year in September , it ’ s no longer enough to sit back and wait for the tenants to come knocking .
“ While rental listings may now remain vacant for longer , others are still highly sought-after – creating a sharp divide between success and struggle for landlords set in ‘ the old ways ’.”
But here ’ s the twist , says Snelling , those who stay ahead of the curve are reaping the rewards . As tenant preferences evolve , so do the strategies required to attract the right residents to secure a long-term ,
stable income .
“ Whether it ’ s the rise of family homes , or the switch from short-term Airbnb-style rentals to long-term leases , the landscape is rich with opportunity for landlords willing to diversify .
MARKET SHIFTS : WHAT ’ S REALLY HAPPENING ?
Snelling acknowledges that it ’ s been a dynamic and varied year in New Zealand ’ s rental market .
“ In 2023 , we saw a completely unsustainable level of demand for rentals , driven by a combination of high migration rates and limited supply . Landlords were in a strong position , as competition for available properties kept demand high and prices even higher . But 2024 has brought a different set of challenges .”
Data from New Zealand ’ s largest online listing marketplace reveals that rental listings have increased by almost one-third year-on-year in September , indicating a sharp shift in the supply-demand equation .
“ This increase in availability , combined with high rents relative to incomes , has set a limit on how much further rental prices can realistically rise .”
Adding to the complexity , the market has seen a more significant proportion of new-build properties unsold following a downturn in development sales and a high level of exit migration . First-home buyers are also one of the most active groups leaving the rental market , which continues to contribute to softening demand .
NOT ALL PROPERTIES ARE EQUAL
“ Whether it ’ s the rise of family homes , or the switch from short-term Airbnb-style rentals to long-term leases , the landscape is rich with opportunity for landlords willing to diversify .”
- Zac Snelling , Ray White New Zealand Head of Property Management
While demand may have softened overall , Snelling says it is important to note that not all properties are experiencing the same challenges .
“ Our nationwide network of professional property managers continues to report a growing divide – 35 per cent of our offices say they have enough supply to meet the current level of demand . However , 65 per cent say they ’ re undersupplied in certain types of homes .
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