Whanganui rent crisis: Lower incomes make city less affordable than Auckland

New data reveals a stark paradox in New Zealand's housing market: the provincial city of Whanganui now has less affordable rents than Auckland, despite lower median prices. The gap is driven by significantly lower household incomes, leaving residents with less disposable income after paying rent.

According to Infometrics principal economist Nick Brunsdon, Whanganui's average annual household income in 2025 was $108,262, compared to the national average of $143,748. This 25% shortfall makes even modest rents a heavier burden.

Why is rent in Whanganui less affordable than in Auckland?

Brunsdon explained that while median rent in Whanganui is $150 per week cheaper than in Auckland, the income disparity makes it less affordable in relative terms. Larger cities often offer more rental choice and competitive pricing, while smaller cities like Whanganui are limited by standalone house rentals.

Landlords Link Whanganui branch manager Monique Haami-Heron confirmed that rents are 'definitely high' for the local economy. 'Living costs are still challenging in Whanganui, especially because Whanganui can still sit in the lower income household [category],' she said.

What caused rents to surge in Whanganui?

Rent in Whanganui was affordable until 2021, when it surpassed the national average. From 2000 to 2017, rent consumed about 13% to 17% of household income, but it has risen every year since 2018.

Haami-Heron identified the Covid-19 pandemic as the turning point. 'Six years ago, rents were still quite low. When Covid hit, I remember there were a lot of investors just scooping up properties and they were putting rents up because, obviously, [the] cost of everything was going up and it was a booming market.'

The inflated prices became the new baseline, increasing by $10 or $20 each time a property hit the market. 'That's why the market has been stagnant,' she said.

How are tenants and landlords coping?

Residents leaving long-term rentals face rents that are double or more than what they paid for years. 'It is a shock to the system for some people, and hard for people to adjust,' Haami-Heron said.

Vacancy times have also increased. 'I remember five years ago, we used to be able to rent a property in one week... This year, the average vacancy time on a property would be, say, three to four weeks, [or] could be even more.'

Harcourts Whanganui property manager Brittany Collins noted that demand remains strong but 'very price-sensitive. If it's not priced right, it's going to sit there.'

What could bring rents down in Whanganui?

Haami-Heron said the high number of available rentals offers hope that the market could adjust. She urged landlords to be more 'realistic' about how much of their mortgages tenants should cover, especially when mortgage costs exceed expectations.

Collins pointed to rising rates, healthy homes compliance costs, and living costs as pressures on landlords. 'They've got to get it back from somewhere,' she said.

Despite the challenges, Collins maintained that Whanganui remains one of the more affordable places to live in New Zealand. 'Everything increases every year apart from, unfortunately, most wages.'

Frequently asked questions about Whanganui rent affordability

How is rent affordability calculated in New Zealand?

Rent affordability compares median rent to household income. Infometrics divides total district earnings by the estimated number of households, including wages, self-employment, benefits, superannuation, and ACC payments.

Is Whanganui rent expected to drop soon?

Local property managers see hope in the high number of vacant rentals. However, prices have not fallen since the post-Covid surge, and landlords continue to expect high returns despite market stagnation.