ER129 Changes in the structure of the private rental market 1996 to 2023 Report 1 of 6 - “Trends in the intermediate housing market” (2026)

The private rental market has played a critical role in New Zealand’s housing market providing accommodation for low to moderate income households. Between 1986 and 2018, size of the stock owned by private property investors increased by 191% although the total dwelling stock only increased by 53%. Rental dwellings were largely acquired from the existing housing stock. This is reflected in the age and comparatively poorer performance of the rental stock. Despite the expansion of the private rental stock, rents are not well aligned to the needs of low and moderate income households. In 2023, 45% of private renter households paid more than 30% of their gross household income in rent compared to 19% in 1996.

The overall objective of this research project is to build our understanding of how the private rental market has performed since the major reforms of the early 1990s, establish whether there is a mis-match between what the market has delivered in terms of housing rental stock and low- and moderate- income households’ ability to affordably occupy these units, and the extent to which policy, regulatory and investment settings might be expected to mitigate current market limits.

This report presents Livingston and Associates Ltd’s analysis of changes in the intermediate housing market between 1991 and 2025.