February saw the most new residential tenancy agreements in nine years, with Auckland CBD apartments hitting a record high. Yet median rents dipped slightly, suggesting tenants have more choice than a year ago.
New Zealand's rental market was busier than it has been in nearly a decade in February, with 16,617 residential properties newly tenanted — a 12.9 percent increase on the same month last year, according to the latest data from Tenancy Services.
February is typically one of the year's busiest months for new rental agreements, driven largely by tertiary students securing accommodation at the start of the academic year. But even accounting for that seasonal pattern, February 2026 stood out.
Auckland recorded its strongest month for new tenancies since the data series began in 2012, with 6,081 agreements signed. The Auckland CBD was particularly active: 594 one-bedroom apartments were newly tenanted, up 214 percent year on year — the highest single month for that property type since records began. Two-bedroom CBD apartments also had their strongest month in over two years, with 210 new tenancies.
Wellington also had a notable month: 2,364 new tenancy agreements, a five-year high for any month, up 9 percent on February 2025.
So why did rents ease?
Despite the surge in rental activity, the national median rent on newly tenanted properties fell to $590 a week in February, down from $600 in January. The $600 figure had been relatively sticky — holding since late 2023 with only occasional dips.
The combination of high turnover and softer headline rents suggests tenants currently have ample choice in the market. More properties being available gives renters more negotiating power, which tends to compress or cap rent growth even when demand for rental housing is elevated.
It's worth noting that February's median reflects newly agreed rents, not rents on existing tenancies. Renters on rolling periodic agreements may not be seeing the same softening if their landlords have not reduced rents — the data captures what new tenants are agreeing to, not what sitting tenants are paying.
What it means for the market
The figures point to an active and well-supplied rental market at the start of what is typically a quieter period for rental demand. Whether the supply overhang persists will depend on factors including new residential construction completing, investor activity in the housing market — which influences whether properties stay in the rental pool or are sold — and seasonal patterns as the academic year settles.
The Tenancy Services data comes from the Ministry of Business, Innovation and Employment and provides a useful snapshot of rental market dynamics at a point when demand from students and other new renters was at its seasonal peak.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.