In what could be a boost for tenants, landlords are reporting an increase in the number of vacant rental properties.
Property Investors' Federation vice-president Andrew King says tenants are becoming harder to find, and estate agents say rents are coming under pressure.
Mr King has noted big rises in the number of North Island city houses for rent in the past fortnight.
"If you are seeking a new tenant for a rental property in Auckland or Wellington then promote it as widely as possible because competition could be strong," he said.
"While listings of property for sale were expected to increase in the lead up to summer, there has been an unexpected rise in the number of rental properties being promoted to let in the past few weeks."
Mr King found big increases in vacancy numbers in Auckland, Tauranga, Hamilton and Wellington.
People who might have become tenants were instead buying houses, aided by low interest rates, he said.
"The bright light on the scene is the number of people moving to New Zealand. Often they rent a property, at least initially, so will, hopefully, provide more demand for the increasing number of available rental properties.
"Further good news for rental property owners is that rental prices have not been affected by lower-than-expected demand for rental property."
Crockers Property Services' latest research showed Auckland rents dropping and house sale figures rising.
"While sales figures start threatening to deliver new market highs, the rental market remains challenging with average rentals in both the two and three-bedroom markets in Auckland continuing to deliver below the long-term trend line," the company's report said.
Average levels fell by a few dollars on the previous month to $332 a week for a two-bedroom property and $434 for a three-bedroom one, said Crockers.
Rental listing increases:
Source: Andrew King Property Management, data for last fortnight
Source: NZ Herald