Hamilton Rental Market Update 2025 – Insights for Landlords & Investors

The Hamilton rental market remains tight, but it’s shifting. Rents are still climbing, with 60% of our tenants facing increases in 2025 averaging 3.5% ($20 per week).

Current rent increases are lower than the $30/week increases we saw two years ago, but landlord costs such as rates, insurance, and maintenance continue to rise. For Hamilton landlords, it means rental income is still trending upward, but tenants now have more choice.

Are there more Renters than Properties Available or is it the Other Way Round?

Demand for rental housing in Hamilton still outweighs supply, but the gap is narrowing.

Our occupancy rate sits at 99%, which is extremely high, though earlier this year it peaked at 99.8%.

This slight easing means tenants have more options, and Hamilton landlords need to stay sharp on pricing and property presentation to remain competitive in this evolving market.

How Long is it Taking to Rent a Property?

On average, our property managers take 14 days from advertising to a signed tenancy agreement.

That aligns with our long-term averages, but what’s changed is the applicant pool.

Where we once had four or five quality applicants per property, now there are typically just one or two. Those top tenants are often weighing up multiple options across different Hamilton property managers, making the competition fierce.

Acting quickly is now essential.

Our Arrears at Record Lows – Why Tenant Selection Process Matters

Finding good tenants in Hamilton is harder than a year ago, but far from impossible.

Renters are more selective, and landlords must act quickly to secure strong applicants.

With a 10-week wait for Tenancy Tribunal hearings, tenant selection has never been more important.

The upside? At Waikato Real Estate, our arrears are at record lows - just three tenants out of 1,300 are more than a week behind on rent.

This shows that careful vetting by an experienced Hamilton property manager pays off.

Where are Hamilton Tenants Coming From?

We’re seeing four clear tenant groups entering the Hamilton rental market:

• Aucklanders moving south for lifestyle and affordability
• Kiwis returning from Australia
• Professionals relocating from Wellington
• New immigrants, either arriving directly or moving down from Auckland

Popular Rental Areas in Hamilton

Family-oriented suburbs like Rototuna, Flagstaff, and Hillcrest remain top choices for professionals and families. Central suburbs such as Hamilton East and Frankton attract students and young professionals.

For Hamilton property investors, we advise caution with university-focused areas - they can be cyclical, and the tenant demographic can be hard on the property.

By contrast, family-oriented suburbs deliver more stable rental demand and long-term protection for your asset.

What Properties Are Tenants Looking For?

Two- and three-bedroom homes dominate demand, together making up about two-thirds of tenant searches on our website.

More than 40% of tenants specifically look for two bathrooms. That second bathroom is becoming a key differentiator, making properties more attractive to families, professionals, and sharers willing to pay a premium.

For Hamilton landlords, adding a second bathroom during renovations can boost rent, reduce vacancy risk, and widen your tenant pool.

What is the Average Rent for Hamilton?

Based on our portfolio of over 1,300 properties, the average weekly rents in Hamilton are:

• Studio or 1 bedroom: $360
• 2-bedroom: $525
• 3-bedroom: $625
• 4-bedroom: $720
• 5+ bedrooms: $800
• All bedrooms (average): $575

These figures highlight that Hamilton rents remain above national averages and continue to offer strong yields for property investors.

Investor Confidence in Hamilton Property

Investor confidence is returning as interest rates ease. Lower borrowing costs are bringing both established landlords and new investors back into the market, while shelved development projects are restarting.

Importantly, investors are no longer chasing quick gains - Hamilton is increasingly seen as a long-term investment market, supported by strong migration, population growth, and major projects like the Ruakura Superhub.

Hamilton Population Growth – The Engine Behind Demand

Hamilton’s population reached 189,700 in 2024, growing 3.0% in just one year, compared with 1.7% nationally.

That’s 5,600 more people - making Hamilton New Zealand’s fastest-growing city.

What’s driving the growth?

• Net international migration added 4,300 people in 2024
• Natural increase (births minus deaths) added 1,400
• Internal migration was slightly negative, showing Hamilton’s growth is being powered by international arrivals

For Hamilton property investors, this is key: new arrivals almost always rent before they buy, meaning strong and sustained demand for rental properties.

What Hamilton Tenants Want in 2025

Healthy Homes compliance, heating, and insulation are must-haves. Beyond that, the most requested features include:

• Garages and secure parking
• Outdoor living spaces
• Two bathrooms in family homes
• Modern kitchens and smart layouts

Properties that are well-presented and professionally marketed by an experienced Hamilton property manager rent faster and with less vacancy.

Key Takeaways for Hamilton Landlords

The Hamilton rental market is evolving.

Rents are still rising, but tenants now have more options and higher expectations. Leasing timeframes are steady at 14 days, but with fewer strong applicants per property, landlords must act quickly. Tribunal delays mean tenant selection is critical.

At the same time, Hamilton’s extraordinary population growth - powered by international migration - is underpinning long-term demand.

For Hamilton landlords and property investors, the winning formula in 2025 is clear: competitive pricing, professional presentation, compliance, and careful tenant selection.

Done well, those fundamentals will protect your investment and keep your property performing in one of New Zealand’s strongest rental markets.

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson began investing in property aged 21 and has since bought, developed and sold real estate in the UK, USA, South East Asia and New Zealand. After a career in banking he is now on the management team at Waikato Real Estate and has contributed to property articles for NZ Herald, Stuff and Property Investor Magazine.

Based in Raglan, Oliver's passions extend beyond property to surfing, hydrofoiling, and providing a taxi service for his children.