Rental market’s dramatic turn – why landlords are worried

Picture of PropertySage

PropertySage

TRUSTED PROPERTY MANAGEMENT

Rents are decreasing in some areas, giving tenants more choices, but landlords are finding it harder to secure good tenants. Now, 35% of landlords are considering selling their properties, and concerns about rising costs for repairs and insurance are growing. Although bank loans are becoming easier to obtain, overall confidence among landlords is declining.

Share Post:

Recently, reports indicate a decline in housing rents across certain regions, providing tenants with more accommodation options than in recent years. A monthly survey of landlords conducted with Crockers Property Management reveals significant shifts in the rental market.

One year ago, 27% of landlords reported finding good tenants easily, but now 24% struggle to do so, reflecting decreased demand due to lower net migration and an increase in rental properties as developers enter the market. This tenant-friendly shift has led more investors to consider selling their properties—up from 30% to 35%—while interest in acquiring new properties has dropped from 22% to 18%.

Despite the current market dynamics, an improvement in bank lending conditions is noted, with 15% of landlords finding loans more accessible compared to a net 10% last year. However, concerns remain regarding rising maintenance costs, insurance, and council rates, making property management increasingly expensive.

Looking ahead, the rental market may not stabilize until next year when fewer landlords and tighter supply could shift the balance. An improving job market in 2026 is expected to encourage more young people to seek independence, further impacting rental demand.

Overall, while interest rates have dropped, the broader economic landscape and rising operational costs may dampen investor optimism.

Source from oneroof: by Tony Alexander
Additional commentary from him can be found at https://www.oneroof.co.nz/news/tony-alexander-rental-markets-dramatic-turn-why-landlords-are-worried-47246?lid=kaldm188wfgc&utm_source=braze_campaign&utm_medium=email&utm_campaign=20250327_OR_Newsletter_Dynamic_Listings_MIN&utm_content=Original&uuid=22c8b01c-6820-4210-bd4c-003f640666d9
The opinions and research contained in this article are provided for information purposes only, are intended to be general in nature, and do not take into account your financial situation or goals.

Stay Connected

More News & Blog

Interest Rate Predictions for 2026: What Property Managers and Buyers Need to Know

Interest rates in New Zealand are expected to remain steady or increase modestly throughout 2026, with major banks forecasting one-year fixed mortgage rates around 4.7% to rising slightly by 2027. The Reserve Bank’s official cash rate is predicted to either hold steady or rise gradually, influencing these lending rates. Experts recommend considering mortgage term fixes carefully, with options ranging from one-year to three-year terms depending on personal circumstances and market outlook

What Rising Inflation Means for Property Buyers and Investors in 2026

The recent rise in inflation to 3.1% has sparked concern but is expected to ease as the economy adjusts, possibly delaying interest rate hikes until later in 2026. First-home buyers remain strong, making up over 27% of market activity due to lower mortgage rates and supportive policies like KiwiSaver. Migration and service sector improvements suggest steady economic recovery, which may boost rental demand and overall housing market health.

What’s Next for Mortgage Interest Rates in 2026?

After trending downwards throughout 2025, interest rates are widely believed to have reached their bottom, with some experts predicting a slight further drop in early 2026. However, the consensus indicates rates will likely plateau or gradually increase throughout 2026 and 2027, and longer-term fixed rates are already rising.