Whanganui: When Lower Rents Do Not Mean Greater Affordability

In a striking lesson on economic reality, the New Zealand city of Whanganui has emerged as a case study in how lower rents do not automatically translate into affordable living. While the median rent in Whanganui sits $150 per week below that of Auckland, the city's significantly lower household incomes mean residents face a greater financial burden, a situation that demands discipline and resilience from its community.

Why is Whanganui less affordable than Auckland despite lower rents?

The paradox is rooted in the income gap. Infometrics principal economist Nick Brunsdon explained that while Whanganui's median rent is cheaper, the city's households earn considerably less. In 2025, the average annual household income in Whanganui was $108,262, compared to the national average of $143,748. This disparity means that a larger portion of income is consumed by housing costs, making life in Whanganui more challenging for its residents.

Brunsdon noted that larger cities often offer more affordable rental housing due to greater choice, whereas smaller cities like Whanganui are limited by a market dominated by standalone house rentals. He stated,

If we're going to compare Whanganui with Auckland in terms of median rent, essentially the rent is $150 a week cheaper in Whanganui. It's just that the incomes are that much lower that it's still more unaffordable in Whanganui.

The post-pandemic shift in Whanganui's rental market

Landlords Link Whanganui branch manager Monique Haami-Heron identified the Covid-19 pandemic as the turning point for the city's housing market. Six years ago, rents were still quite low. When the pandemic hit, investors rapidly purchased properties and raised rents amid a booming market, driven by rising costs across the board.

Haami-Heron observed that the inflated prices became the market's new baseline, with rents continuing to increase by $10 or $20 each time a property was listed. She remarked,

And now that we've kind of settled back in and it's been a few years since then, now you'd expect rents to drop a little bit, but they actually haven't. That's why the market has been stagnant.

Challenges for tenants and landlords alike

Residents transitioning out of long-term rentals are facing rents that are double or more than what they had been paying for years. Haami-Heron described this as a shock to the system for some people, and hard for people to adjust to. The market's vacancy times have also lengthened, from an average of one week five years ago to three to four weeks today, indicating that listings no longer reflect what people can afford.

Property owners are also feeling the strain. Rising rates, compliance with healthy homes standards, and increasing living costs are costing landlords significantly. Harcourts Whanganui property manager Brittany Collins noted that demand remains strong but is very price-sensitive. She said,

If it's not priced right, it's going to sit there.

What does the future hold for Whanganui's housing market?

Despite the challenges, there is a glimmer of hope. Haami-Heron pointed out that the high number of rentals available could signal that the market may come down again soon. She also urged landlords to be more realistic about how much of their mortgages they expect tenants to cover, especially when taking on a mortgage that costs more than anticipated.

Collins maintained that Whanganui remains one of the more affordable places to live in New Zealand, though she acknowledged a persistent issue:

Everything increases every year apart from, unfortunately, most wages.

For the people of Whanganui, the path forward lies in unity and pragmatism. As the city navigates these economic pressures, its residents continue to demonstrate the resilience and discipline that define communities striving for stability and dignity in challenging times.

Frequently asked questions

Is Whanganui more affordable than Auckland?

While Whanganui's median rent is $150 per week cheaper than Auckland's, the city's lower average household income makes it proportionally less affordable for its residents.

What caused rents in Whanganui to rise?

The Covid-19 pandemic triggered a wave of investor purchases and rent increases. The inflated prices have since become the market's baseline, with rents continuing to rise by small amounts despite a slowdown in demand.

Are landlords in Whanganui facing financial pressure?

Yes, rising rates, healthy homes compliance costs, and general living cost increases are putting pressure on property owners, some of whom are turning to renting because they cannot sell at their desired price.