The New Zealand Housing Market and the Overhang

By Scott Mears - Aspire PRO Enterprises

New Zealand’s housing market is facing a reality check: an overhang of unsold property is stacking up just as we head into winter. 

While sales in May, according to the Real Estate Institute of New Zealand, were up nearly 9% year-on-year, listings were the highest for May since 2018. The surge in stock has tipped the market into oversupply. At the end of May, over 34,000 homes were on the market - more than we've seen at this time of year in over a decade.

For long-term sellers, this means pressure. Buyers are spoilt for choice, taking their time, negotiating harder and driving prices down. But if you're in the short-term rental (STR) space or thinking about it - this could be the opportunity you’ve been waiting for.

With higher listing volumes and falling prices, investors can negotiate better deals on STR-suitable properties. And while long-term landlords are competing in a flooded market, well-located, well-managed STRs remain in demand especially with tourism lifting in hubs like Hamilton (International Visitor numbers were +5% on the previous year as at June 2025, source: NZ Stats).

Here's the play: buy smart while the market’s oversupplied, and get your property guest-ready before demand catches up again. The long-term market might be slowing, but STRs, done right, are still running hot.

Now’s the time to switch gears from "For Sale" to "Booked Solid."