Rents climbed 11.8 percent over the year to December, reflecting strong demand and a tight pool of available properties.
The central North Island recorded the second‑largest annual increase, with rents rising 6.2 percent to $597 per week.
Nationally, the average rent fell 2.4 percent to $626 per week.
Realestate.co.nz spokesperson Vanessa Williams said the data showed a clear split emerging between premium lifestyle regions and the rest of the market.
"Central Otago/Lakes District continues to sit in a league of its own, driven by strong demand and a limited pool of rentals which is pushing prices to record highs."
"When weekly rental prices start closing in on mortgage repayments, it's no surprise that renters are making the leap into home ownership, and our data shows that shift is well under way."
It's a buyers' market elsewhere
The news is much better for renters across the rest of the country, as 13 of 19 regions recorded annual price drops compared with December 2024.
Coromandel saw the steepest decline, with average rents plunging 41.0 percent to $539 per week.
Wellington followed with an 8.4 percent fall to $663, while Auckland slipped 1.7 percent to $683.
Realestate.co.nz said the rental market was now flooded with stock, with new listings up 19.8 percent year‑on‑year to 5,349 in December 2025.
Wellington's number of rentals show a staggering increase of 91.5 percent to 925 properties.
Williams says it will be a buyers' market for the foreseeable future in most parts of the country.
She said the weakness in Auckland and Wellington reflected their weak economies, and soft jobs markets.
"With stock building and competition among landlords rising, renters will continue to find themselves in a stronger position to negotiate on price or lease terms in 2026."
