Auckland, Wellington, Or Canterbury - Where’s The Cheapest Place To Rent?

• Average rental prices down in Auckland and Wellington
• Wellington renters could save $3,000 a year, with Aucklanders following at $1,560
• Canterbury rents stable, but renters spend a higher share of income on rent

Kiwis spend a significant portion of their household income on rent. So, how do our three most populated regions—Auckland, Wellington, and Canterbury—compare?

New data from realestate.co.nz reveals that renters in Wellington and Auckland may be paying less than they were a year ago, while prices in Canterbury remain stable.

Wellington has seen the biggest drop, with rental prices down 8.0% since February 2024 to $673 per week, potentially saving renters $3,016 a year. Auckland follows with a 4.1% decline to $689 per week, equating to annual savings of $1,560. Meanwhile, Canterbury’s rental prices have remained relatively steady, down just 0.4% to $586 per week, with minimal savings of $104 a year, or just $2 per week.

Vanessa Williams, spokesperson for realestate.co.nz, says these changes reflect shifting rental market conditions but warns against assuming lower rent prices translate to immediate financial relief:

“While lower average rents indicate a more tenant-friendly market in Auckland and Wellington, renters may not immediately experience these savings. Those on fixed-term leases may still be paying higher rents, so new renters or those renewing agreements are more likely to benefit.”

Despite stable prices, Canterbury renters spend a slightly higher proportion of their income on rent compared to those in Auckland and Wellington.

Using Stats NZ’s most recent household income data (June 2024) as a benchmark, the estimated proportion of household disposable income spent on rent in February 2025 would be 29.7% in Auckland, 29.8% in Wellington, and 30.6% in Canterbury.

Going by the common ‘30% of income on rent’ affordability rule, rental costs in all three cities sit near this threshold. However, Williams cautions that this benchmark doesn’t reflect individual circumstances. “Affordability isn’t just about rent; it’s about income and other living costs, including inflation, rising grocery and utility prices, and whether wages have kept pace with overall expenses.”

“Nationally, we have seen rents trend downwards over the last 12 months, reflecting the broader economic challenges facing many Kiwis.”

Frances Cook, finance journalist and Making Cents podcast host says the rental price drops will be good news and says that 30% affordability ratio advice is unrealistic for many renters:

“This will be welcome news to many renters, as housing is one of the biggest costs in the average budget. The standard advice is to try not to spend more than 30% of your income on housing, but frankly, that’s been really difficult for a while now. For many people, it was nudging up past 50% of their income, going towards just keeping a roof over their heads. If you can snag one of these cheaper properties, and then start working on a pay rise, that’s a double hit that would help a lot of people.”

Sources

• realestate.co.nz rental data (February 2025)
• Stats NZ household income data (June 2024)

Note: All figures are based on the latest available data as of February 2025. Regional boundaries between realestate.co.nz and Stats NZ may differ.

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