Rental markets in Tauranga and Rotorua are showing signs of stabilization as tenants become increasingly price-sensitive amid ongoing cost-of-living pressures. While coastal suburbs like Mount Maunganui and Pāpāmoa remain the most expensive, with weekly rents averaging between $735 and $740, property managers report that rental growth has slowed significantly across the Bay of Plenty over the past 12 months, according to data from local agencies and the Ministry of Housing and Urban Development.
Why is the rental market cooling?
Growth in rental prices has stalled because supply has finally started to meet demand. Dan Lusby, principal officer at Tauranga Rentals, noted that the number of available properties on their books has doubled from 150 to 300 in the last two years. According to Lusby, this increased choice makes it difficult for landlords to push through significant rent hikes, resulting in a market increase of less than 2% over the past year. Property manager Theresa Brand of East Rentals agrees, noting that while demand remains, tenants are no longer willing to absorb “overpriced” properties, which now sit vacant for longer periods.

Data from the Ministry of Housing and Urban Development reveals that while some areas like Pyes Pa West saw a rise in rental bond activity, others like Tauranga Central experienced a decrease, reflecting a shifting landscape in tenant movement.
What features do tenants want now?
Modernization is the new currency in the rental market. Juli Tolley, general manager at Quinovic Tauranga, reports that tenants are increasingly “discerning,” frequently requesting specific upgrades like dishwashers, improved lighting, and private outdoor decks. In Rotorua, the trend is similar. Carrie Metcalfe, director of iRent Property Rotorua, says that tenants are prioritizing modern builds and functional homes over proximity to work. Properties lacking essential features such as garages or off-street parking are seeing a decline in interest, as tenants prioritize secure storage for outdoor equipment in a region known for its recreational culture.
How do costs impact future rent prices?
Future rent increases will likely be dictated by landlord expenses rather than market speculation. According to Juli Tolley, the surge in rents between 2020 and 2024 was driven by the rising cost of property ownership, including higher rates and insurance. While prices “flatlined” last year, Tolley observes they are beginning to “inch back up” as those operational costs persist. Dan Lusby adds that many tenants are choosing to stay put to avoid the high cost of moving, which provides a temporary buffer against rent hikes for those who maintain their properties well.
Comparison of Rental Trends: Tauranga vs. Rotorua
| Metric | Tauranga | Rotorua |
|---|---|---|
| Market Trend | Growth < 2% | Broad-based activity growth |
| Top Suburb | Pāpāmoa (~$740/wk) | Lynmore (~$710/wk) |
If you are a landlord, investing in minor upgrades like modern lighting or dishwasher installation can help your property lease faster in a competitive market where tenants are increasingly selective.
Frequently Asked Questions
Are rental prices still rising in the Bay of Plenty?
Rental growth has slowed significantly. While some areas are seeing minor increases, many regions have experienced a “flatlining” of prices over the past year due to increased supply and tenant price sensitivity, according to local property management experts.

Why are some properties sitting on the market longer?
According to Theresa Brand of East Rentals, overpriced properties are staying vacant longer because tenants have become more discerning and price-conscious due to the cost-of-living crisis.
What is the most important factor for Rotorua tenants?
Carrie Metcalfe notes that Rotorua tenants place a high value on modern, well-maintained homes with functional storage and off-street parking, often prioritizing these features over a shorter commute.
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