Building Boom or Bust? What NZ’s Permit Numbers Mean for Rentals

By Scott Mears - Aspire PRO Enterprises

You’ve probably seen the news: building consents are down. But what does that actually mean if you own or want to own a rental property?

Fewer New Builds = Less Future Supply

Stats NZ recently reported a 3.3% drop in building consents across the country for the year to March 2025. Why? Construction costs, tougher lending, high interest rates; it’s just not stacking up like it used to.

That means fewer homes being built now…and fewer rentals available later.

Long-Term Rentals: Relief or Risk?

For landlords in the long-term game, a drop in new builds can be a double-edged sword.

✔ Less competition in the future could mean stronger rental demand and more pricing power.
✖ But right now? Oversupply is still real in many areas, especially in cities like Hamilton where new builds are still hitting the market.

So, if your long-term rental is sitting empty, the issue might not be future supply; it’s current tenant demand, which is still soft due to lower net migration and high cost-of-living pressures.

What About STRs?

Short-term rentals aren’t immune either. With more properties (including new builds) being pushed into the Airbnb pool, competition is up.

But here’s the twist: not all new builds are STR-friendly. Many are cookie-cutter townhouses or apartments in areas with body corporate rules or zoning restrictions. So quality STR stock remains limited and that’s where investors can win.

Bottom Line

The building slowdown means the market is adjusting. We're seeing the tail end of building permit increases meet a dip in demand, creating short-term pain and longer-term potential.

If you’re thinking about buying, it’s time to be selective. And if you’re already in the rental game, now’s the moment to tighten up your pricing, improve presentation and get smart about who you’re targeting.

Because whether you’re renting short or long, less stress and better returns start with the right strategy.