Rental demand remains strong: Rentworks Property Management
If there is one thing that unites Kiwis, it is the idea that everyone should have a roof over their head.
The intrepid souls that took to boats and crossed the seas from the different nations over centuries were all searching for the same thing. A place to belong, a place to feel secure, and membership of a community. They sought a home.
Reporting of the shortage of homes has been a constant soundtrack in the background this century. Brent Manderson, Business Development Manager at Rentworks analyses the issue through Census data and rental market experience. “The Census shows many four-bedroom homes are occupied by one or two people. In Christchurch, 36% of households live in homes with four or more bedrooms.”
This trend has sparked debate about the impact of underutilised housing on the broader supply. Since the early 1990s, the number of homes with spare bedrooms has increased dramatically, with nearly 687,000 homes across New Zealand having two or more spare bedrooms, and an additional 550,000 with at least one spare room.
“Our experience in the rental market raises questions about the diversity of housing options being built,” says Brent. “While two-bedroom homes dominate new developments, we’ve seen increasing demand for larger, well-designed three-bedroom properties with features like garaging. This points to a potential mismatch in supply and demand. Larger, older family homes remain popular with both owners and renters because they offer space and functionality that many new builds lack. This could explain why some renters choose to stay in these homes, they simply don’t see appealing alternatives that suit their needs.”
The team worked with a development that broke the mould by offering variety. “One-bedroom studios, two-bedroom units, and three-bedroom homes resulted in a wide range of tenants, spanning different ages and lifestyles, creating a dynamic and balanced community. Diversifying home size will be key to meeting the needs of a changing market and supporting long term tenancies,” says Brent.
“Brent notes that rents are steady with the national median at $600 per week for the last seven months, while the Christchurch median is also holding at $540 per week.” Factors combining to offer stability include: the Official Cash Rate reduction, Kiwis leaving but new immigrants arriving, building consents at a five-year low, mortgage approvals down, and median house sale prices dropping.
“The signs point to moderate to robust growth in 2025,” says Brent, “population growth and urbanisation will drive renting, and student demand remains strong with the incredible popularity of the University of Canterbury.”
