Wellington’s commercial rates were also the highest of the sample cities, making up 2.4% of capital value.
The report compared rates affordability but did not compare the level or types of services funded by rates from different councils.
Wellington City Council during its first council meeting since the local body elections in 2025.
The affordability of residential rates was measured by looking at rates as a percentage of household income.
In 2012, rates accounted for 2.2% of household income.
In 2025, rates made up 3.8% of household income on average.
Research from the 2007 Shand report, which looked at local government rates in New Zealand, suggested rates were unaffordable when they cost more than 5% of household income.
Within Wellington, the city’s rural area had the most affordable rates, which sat at 1.4% of household income, and included places like Mākara Village, which is not serviced with reticulated water or wastewater.
Oriental Bay had the most unaffordable rates in Wellington, with the report finding rates cost 7.5% of household income in the area.
“This reflects what Wellingtonians have been saying through consultation feedback in recent times – rates are high, households are under financial pressure and the high rates rises are unsustainable,” the council said in a statement.
“Rates affordability was identified as a key objective in the Triennium Plan,” the council’s chief strategy and finance officer Andrea Reeves said in a statement.
“The plan also committed to improving transparency and supporting decisions with better data. The rates affordability report will support this.”
On March 12, the council accepted the Mahere Tautoru Triennium Plan, which is a shared plan between the mayor, councillors and iwi groups that will span 2025-2028.
Reeves said the council will focus on rates affordability when developing the draft budget for the next financial year.
Rates were initially forecast to increase by 12.7% but the council brought it down to 7.4% while still preserving services and facilities people rely on, she said.
Findings from the report will help support decision-making for the council’s 2027-2037 Long-Term Plan and budget.