Queenstown’s rental market continues to attract strong attention from property investors in New Zealand and overseas, particularly as the region performs differently from the rest of the country. While the wider New Zealand property market has remained relatively cautious through 2026, locally we have continued to experience strong rental demand, low housing supply, and rising rental prices. At the same time, investors are weighing up changing interest rates, increasing compliance costs, and the ongoing debate between long-term residential rentals and short-term holiday rentals.
Queenstown recently became the first region in New Zealand where average weekly rents exceeded $900 per week, this has largely been driven by ongoing population growth, limited housing supply, stable tourism and hospitality employment, and continued demand for quality long-term residences. Well-presented long-term rentals are leasing quickly, particularly homes suited to professionals and families, this has helped support relatively strong rental returns compared with many other regions.
Long-Term Rentals vs Airbnb
One of the most common questions investors ask is whether long-term residential rentals or short-term accommodation provide better value in Queenstown. The answer largely depends on the owner’s goals, level of involvement, and risk tolerance. Short-term accommodation platforms such as Airbnb can produce strong income during peak tourism periods, particularly for well-located and professionally managed properties. However, they also generally involve higher management and maintenance costs, furnishing expenses, seasonal income fluctuations, and more hands-on involvement. Long-term residential rentals, on the other hand can deliver more stable income, lower vacancy risk, fewer operational costs,and more predictable tenancy arrangements. Many investors are now placing greater importance on consistency and lower management intensity rather than chasing maximum short-term revenue.
Why Professional Property Management Matters
As tenancy legislation and compliance requirements continue to evolve, more investors are choosing professional management to help protect both their property and rental income. An experienced property manager can add value with accurate rental appraisals, thorough tenant selection, proactive maintenace, legislative compliance, maintenance coordination, and minimising vacancy periods. For investors based outside of Queenstown, local market knowledge can also make a significant difference when navigating seasonal demand changes and rental pricing. At Merino Homes we work closely with property investors to help them understand the current Queenstown rental market while protecting the long-term value of their property.
Final Thoughts
Queenstown continues to stand out as one of New Zealand’s strongest-performing rental markets, supported by high demand and limited housing supply. However, the investment environment in 2026 is also more measured than in previous years, with investors paying closer attention to costs, compliance, and long-term returns. For many property owners, long-term residential rentals are continuing to provide a stable and relatively low-risk investment option, particularly when professionally managed.