NZ
NZ Tax Tools

NZ Rental Affordability Index by City

Rent is the biggest line item in most Kiwi budgets. Using MBIE bond data for median rents and Stats NZ earnings data, we track the rent-to-income ratio across 10 cities from 2020 to 2026 — showing where renters are most and least stressed.

Rent-to-income ratio by city

City 2020202220242026 2026 Status
Auckland 46.5%46.3%46.5%45.4% Severely stressed
Wellington 44.8%43.8%43.2%42.6% Severely stressed
Christchurch 39.1%40.3%41.4%40.7% Severely stressed
Hamilton 38.3%39.5%40.6%40.0% Severely stressed
Tauranga 46.4%47.5%48.1%47.1% Severely stressed
Dunedin 36.2%36.8%37.4%36.9% Stressed
Palmerston North 34.9%35.3%36.5%36.1% Stressed
Nelson 42.7%43.8%43.8%43.0% Severely stressed
Napier 38.9%40.2%41.3%40.6% Severely stressed
Rotorua 39.0%39.8%40.5%40.2% Severely stressed

Ratio = weekly rent / weekly earnings × 100. Uses median values. Under 25% = affordable, 25-30% = moderately stressed, 30-40% = stressed, 40%+ = severely stressed (MBIE/Stats NZ methodology).

Median weekly rent (NZD)

City 2020202220242026 Change 2020→2026
Auckland $575$620$670$690 +$115 (+20.0%)
Wellington $560$600$640$660 +$100 (+17.9%)
Christchurch $430$480$530$550 +$120 (+27.9%)
Hamilton $440$490$540$560 +$120 (+27.3%)
Tauranga $520$580$630$650 +$130 (+25.0%)
Dunedin $380$420$460$480 +$100 (+26.3%)
Palmerston North $370$410$460$480 +$110 (+29.7%)
Nelson $440$490$530$550 +$110 (+25.0%)
Napier $420$470$520$540 +$120 (+28.6%)
Rotorua $390$430$470$490 +$100 (+25.6%)

Source: MBIE Tenancy Bond Data (June quarter). Median weekly rent for new tenancy bonds lodged, all dwelling types.

Key observations

  • No city is affordable. The cheapest major city (Christchurch, 40.7% in 2026) is still well above the 30% stress threshold. The rental affordability crisis is nationwide, not just an Auckland-Wellington problem.
  • Tauranga is the worst. At 47.1% of median income in 2026, Tauranga renters face the highest rent burden. The city's popularity with retirees and lifestyle migrants drives demand, while wages lag behind rents.
  • Rents rose fastest in regional cities. Hamilton (+27.3%), Tauranga (+25.0%), and Rotorua (+25.6%) saw faster rent growth than Auckland (+20.0%) or Wellington (+17.9%). The work-from-home shift during COVID drove demand to smaller cities.
  • Income growth helped but didn't solve it. Median weekly earnings grew ~20-24% from 2020-2026 across cities, roughly tracking rent growth. But since the base rent was already unaffordable in 2020 (~35-43%), keeping pace just prevented things getting worse — it didn't fix the underlying problem.
  • Christchurch is the relative outlier. Post-earthquake rebuilding (2011+) created excess housing supply in Christchurch, keeping rent growth below the national average. But as the rebuild winds down and population grows, Christchurch's advantage is narrowing.

Run your own numbers

Frequently asked questions

What is considered 'rent stressed'?

The standard benchmark is spending more than 30% of gross income on rent. Under 25% is considered affordable; 25-30% is moderately stressed; 30-40% is stressed; over 40% is severely stressed. These benchmarks are used by MBIE, Stats NZ, and international housing researchers.

Which NZ city has the cheapest rent relative to income?

Christchurch and Palmerston North are the most affordable at ~36-41% of median weekly earnings in 2026. No major NZ city is below the 30% 'affordable' threshold — the cheapest city requires over a third of median income for rent.

Which city is the worst for renters?

Tauranga (47.1%) and Auckland (45.4%) are the most stressed in 2026. Renters in these cities spend nearly half their pre-tax income on rent alone, before food, transport, or utilities. Even two-income households are stretched.

Has rental affordability improved post-COVID?

No. Rents have risen 15-25% since 2020 across all cities, while wages have risen ~20-25%. The rent-to-income ratio has been roughly flat — meaning renters haven't gained ground. The post-COVID migration surge (2022-2023) drove rents up faster than wages, and the gap hasn't closed.

Does this account for flatmates or dual-income households?

No. This analysis uses median full-time individual earnings and median rent for the dwelling. In reality, many renters share with flatmates or partners, reducing their individual rent burden. A dual-income couple renting together effectively splits the ratio in half. This data is about the headline affordability of rental housing stock, not individual household budgets.

Where does the data come from?

Rent data: MBIE Tenancy Bond Data (median weekly rent by territorial authority, June quarter). Earnings data: Stats NZ (median weekly earnings from wages and salaries, full-time employees, by city).

Last updated 21 June 2026Tax year 2025-26

Data sources: MBIE — Tenancy Bond Data (median weekly rent by territorial authority), Stats NZ — Labour Market Statistics (median weekly earnings by city), Stats NZ — Consumers Price Index

This tool is general information only, not financial advice.

Reviewed by NZ Tax Tools Editorial Desk

Read our methodology →