Short answer: yes. Longer answer? Still yes, but let’s unpack why.
New Plymouth isn’t trying to be the next Auckland or Christchurch, and that’s exactly its strength. It’s a city with a manageable size, a coastline locals actually use, and a property market that’s been quietly putting in the work. For too long, New Plymouth has flown under the radar, overshadowed by flashier markets. But investors who’ve done their homework know there’s value here, and it’s starting to get noticed.
If you’re looking for a property market that delivers strong yields, growing infrastructure, and less volatility, New Plymouth is absolutely worth your attention in 2025.
Steady Market, Sensible Prices
You don’t have to squint at New Plymouth’s property data to find the value, it’s right there in plain sight. Compared to the major metros, this city offers a much lower barrier to entry, with homes still priced under the national average, even in quality neighbourhoods.
New Plymouth’s average property values are sitting between $500,000 and $600,000, depending on the suburb. That’s a far cry from Auckland’s near-million-dollar median, and it makes the region one of the last remaining strongholds of affordability for investors.
But affordability isn’t enough on its own—you also want stability, and New Plymouth delivers. Property values here didn’t experience the same extreme COVID boom-and-bust curve that rocked other parts of the country. The market has moved steadily upward, with fewer dramatic swings. It’s not headline-grabbing growth, but it’s sustainable, and that’s what long-term investors actually need.
Interested in seeing some of the wider Taranaki region’s best investment suburbs? We’ve put together this convenient guide.
Yields That Mean Business
Rental returns in New Plymouth are quietly outperforming many larger cities, and without the same level of competition. In fact, three of the city’s key suburbs, Marfell, Spotswood, and Merrilands, are delivering gross rental yields of over 5%, with Marfell topping out at 5.89% and an average house price of just $503,000.
That’s serious value when you consider the national average is hovering around 4%, and many Auckland suburbs are stuck around 3% unless you’re going high-risk or ultra-central.
So what’s driving these yields? It’s a combination of:
- Low purchase prices
- Consistent tenant demand
- Modest but stable rent increases
The result is cashflow-positive potential that actually stacks up on paper, without requiring a second income to subsidise your portfolio.
Who’s Renting in New Plymouth?
You’re not investing in a ghost town. New Plymouth has a steady rental population, made up of working families, professionals, and tradespeople tied to the region’s growing commercial and industrial sectors.
Key tenant drivers include:
- The energy and engineering sectors, particularly around Port Taranaki
- Healthcare professionals at Taranaki Base Hospital
- Education workers and students at local schools and tertiary providers
- A rising remote workforce seeking a lifestyle with lower housing costs
This mix ensures diverse rental demand, not just seasonal or student-heavy tenancies. In other words, it’s a landlord-friendly mix with room for both long-term lets and premium rentals.
Lifestyle Appeal Fuelling Growth
It’s not just about numbers—New Plymouth is gaining popularity because people genuinely want to live here. And when population increases, so does housing demand.
The city consistently ranks high in quality-of-life surveys, thanks to:
- Coastal living with surfing, trails, and mountain views
- Growing arts, food, and music scenes
- Walkable, well-connected suburbs
- Decent infrastructure without big-city stress
As remote work continues to rise, more buyers and renters are shifting their gaze to places that offer lifestyle without compromise. New Plymouth checks those boxes, and property investors are already taking note.
Infrastructure and Development Backing It All Up
This isn’t a stagnant market resting on scenery. There’s real investment happening on the ground. Local council and government-led projects are helping boost confidence and future-proof the region’s appeal.
Key developments include:
- Ongoing upgrades to State Highway 3 are improving access to and from the city
- CBD revitalisation efforts to attract more residents, businesses, and tourism
- Housing intensification through urban planning changes that support infill and townhouse developments
These initiatives won’t just improve liveability, they also support stronger property values over the long term. Investors coming in now are buying ahead of the curve.
The Rent Shop New Plymouth: Local Experts, Real Results
If you’re thinking New Plymouth could be your next smart move, and all signs point to yes, then you’ll want a property partner who actually knows the local ground.
At The Rent Shop, we’re not dialing in from another city - we’re locals. We understand the neighbourhood dynamics, tenant demand, and how to get the most out of every investment property. Our team offers on-the-ground support, expert tenant selection, and proactive management tailored to this market.
So if New Plymouth’s strong yields and steady growth have caught your attention, let’s make sure your investment is set up to succeed.
Work with the local team who knows the market inside and out.
