Landlords report improving rental market despite lingering price concerns, Tony Alexander finds
New Zealand property investors are reporting a gradual easing in the rental market, even as concerns about further house price falls have risen to their highest level since surveying began, according to independent economist Tony Alexander's latest Property Investor Report.
The August survey of 205 investors, conducted for The Property Consortium, points to a market in which landlords are slowly regaining ground on tenant availability while remaining cautious about where prices are headed.
Tenant-sourcing difficulties continue to ease
A net 27% of landlords this month said they were finding it hard to source the tenants they want, down from 41% a year ago and the least difficult reading since May 2025.
Alexander (pictured) said the trend has been consistent even as other signs of recovery remain tentative.
"When it comes to landlord issues securing the tenants they want there is a sustained trend underway for the better," he said.
That easing appears to be flowing through to rent expectations, with a net 46% of investors now planning to raise rents over the next 12 months, up from 44% last month, while the average planned increase edged up to 3.9% from 3.8%.
Alexander cautioned the shift shouldn't be overstated given landlords still face a market tilted toward tenants, noting it "seems unlikely that rents pressures will shift firmly upward over the remainder of this year."
Price concerns climb despite a stable market
Investor worry about falling house prices has reached its highest level on record for the survey, with 10% of respondents now flagging it as a concern, despite prices having fallen just 0.4% in the year to July.
Alexander linked the rise partly to uncertainty ahead of this year's general election in November, noting these worries "may reflect growing worries about the changes which may or may not come after this year's general election."
Worries about interest rates rising have eased slightly, even with strong expectations that the Reserve Bank will tighten monetary policy again in September and October. The RBNZ has already begun that process, lifting the OCR to 2.5% in July, with the next tests of that outlook due at its Monetary Policy Statement on 2 September and Monetary Policy Review on 28 October.
Buying intentions have improved slightly over the past three months, though Alexander was cautious about reading too much into the shift, saying "at this stage it feels too early to conclude that investor demand is now trending back up."
Selling intentions, meanwhile, have eased to their lowest level since September 2025, at 32%.
Access the full report for more insights.
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