Median rents in Southland rose more than 6% in the year to October, up $30 to $520 a week, the fastest annual increase of any region in New Zealand, Trade Me Property said on Wednesday 11 November.
Even after the rise, Southland remains the cheapest region in the country to rent in, the company said.
The national median rent in October was $625 a week. That was 0.8% higher than in September and 2.5% higher than a year earlier, the fastest annual growth since 2024.
Canterbury had the second-fastest rise in rents, up 3.5% to $590 a week. Otago rents rose 1.6% to $630.
Trade Me Property customer director Gavin Lloyd said Southland's rent rise was the biggest in the country.
"Southland saw the highest annual rent growth, yet at $520 a week, it remains the most affordable rental market in the country," Mr Lloyd said in a statement.
House prices moved the other way. Southland was the only region where the average asking price fell between September and October, dropping 5%.
Asking prices rose in the other 14 regions over the month. The national average rose 2.7% to $857,750, though that was still 2.9% lower than in October 2025.
Otago recorded the strongest annual growth in asking prices, up 7.6% to $972,900. That left it $35,550 behind Auckland, the smallest gap between Auckland and any South Island region in 10 years, Trade Me said.
Nationally, demand from tenants was 15% higher than a year earlier, while the number of new rental listings fell by almost 7%.
New listings of homes for sale jumped by close to 15% from September to October, which Trade Me linked to sellers who had planned to list before the general election.
"What we're seeing is a market that has settled at a level where more Kiwi can take part," Mr Lloyd said.
What happens next
Mr Lloyd said tenant demand running ahead of supply was a clear signal to investors weighing up a purchase, as the numbers were beginning to stack up again.
Tenants with questions about rent increases can find information on the Tenancy Services website, tenancy.govt.nz.
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