More rentals, higher prices in Nelson

Rents in Nelson have hit a record high, with demand continuing to push prices up despite a broader easing across the country.

New data from realestate.co.nz shows the average weekly rent in Nelson and Bays rose to $617 in April, up 7.8% from $573 a year earlier.

The increase highlights ongoing pressure in the local rental market, with Nelson one of just two regions, alongside Waikato, to record a new average rent high.

Realestate.co.nz spokesperson Vanessa Williams said the figures reflected strong demand in the region.

“While many parts of the country are seeing some relief, Nelson continues to show strong demand for rental housing,” she said.

Local rental supply has also lifted slightly. In Nelson, total rental stock rose 7% in April compared to a year earlier, increasing from 84 to 90 listings, and was up 15% on March.

New listings increased 13.6% year-on-year, from 59 to 67, although they were down 19.3% compared to the previous month.

Williams said the increase was “technically defying the laws of supply and demand” given a healthy number of homes were coming onto the market.

“When you look at the types of properties coming on, there are some really quite nice homes, and I wonder if that’s tipped the average over the edge.”

She said rents had been trending upwards for some time, and it was always important to watch for a trend.

“This hasn’t come out of nowhere,” she said. “I wouldn’t say it’s a one-off. It’s been building over the year.”

She said the increase could also reflect changing behaviour in the market.

“There may be a combination of people continuing to see value in the rental market, or perhaps selling homes and moving into rentals, which could also be pushing up the average.”

Despite the increase in available properties, supply remains relatively tight, with demand continuing to support higher prices.

Nationally, rents had eased slightly, with the average weekly rent falling 1.4% to $631 — almost $30 below the peak recorded in May 2024.

Williams said the shifting figures showed how quickly conditions could change.

“For renters, it’s a noticeable change from the pressure we were seeing at the peak, but it also shows how quickly market conditions can move,” she said.

She said demand for quality rental housing remained strong, even in regions where prices had softened.

By Nina Hindmarsh, Nelson Mail