Long-Term Rentals Everywhere…But Not Enough Beds in Hamilton

By Scott Mears - Aspire PRO Enterprises

Right now, New Zealand’s rental market is flipping. While major cities like Auckland and Wellington are seeing a surplus of long-term rentals, places like Hamilton are facing the opposite problem - not enough short-term accommodation to meet demand.

Let’s break it down.

Too Many Rentals, Not Enough Tenants

A recent Radio New Zealand article revealed that long-term rental listings on Trade Me are up 31% compared to last year, and a whopping 41% up the year before that. That's a lot of empty properties.

Why? Developers are stuck. They’ve built homes they can’t sell in a sluggish market, so they’re putting them up for rent instead. This is especially visible in Auckland, Christchurch, and Wellington - places where vacancy rates are climbing and “For Rent” signs are everywhere.

Some key takeaways:

• Auckland & Wellington have nearly 4–5% vacancy rates.

• There’s a townhouse glut in places like Christchurch.

• New builds are flooding rental listings because owners couldn’t sell them.

Meanwhile…Hamilton is Telling a Different Story

Here’s where it gets interesting: Hamilton isn’t experiencing the same glut. In fact, it’s facing a shortage of quality short-term rentals.

People travelling for work, visiting family, or heading to events in the Waikato are struggling to find flexible, high-standard places to stay. That’s a huge opportunity.

While big cities are drowning in long-term rentals that aren’t moving, Hamilton’s short-term rental market is under-supplied and in demand.

Why This Matters

If you’re holding a property in Hamilton or looking to invest in a region with upside like Hamilton — now’s the time to think STR (short-term rental).

Unlike long-term rentals, STRs give you:

• Higher per-night income

• Flexibility to sell when the market improves

• Better use of modern apartments that might otherwise sit vacant

In a city like Hamilton, where demand for short stays continues to outpace supply, you’re not just another landlord fighting over tenants - you’re offering something the market actually needs.

Final Word

Big cities are full of rentals. Hamilton? Not enough.

If you’ve got a place in Hamilton or you’re thinking of buying - now might be the smartest time to pivot to short-term rental income.

Want to see what your Hamilton property could earn as an STR? Book a free, no obligation appraisal here.