What would you guess we were talking about if we said that there was a bit of a sugar rush in 2022, a crash in 2023, and then an unsteady 2024?
This would probably sound familiar to anyone doing business in New Zealand—or perhaps just shopping for groceries here. But it’s actually a description of the market for .nz domain names. As we see it, the number of registered domains is worth tracking if you want a useful, if slightly unusual, indicator of how the local economy is doing.
So, how’s 2025 looking so far?
Slow but steady growth
The Domain Name Commission, or DNC, reports monthly market data. Their latest numbers cover August 2025, when there were 756,719 domains registered. To give that number some context the highest total ever recorded was 758,495 in June 2023.
Arguably more important than the total is the trend. 2025 has seen growth every month, adding over 7,500 domains to the total. This is a welcome change from recent years. The undulations of 2024 resulted in overall growth of only 2,746, and 2023 included a record-setting loss of 13,000 domains in just six months.
The consistency of this year’s growth is a good sign, even if August (1,150) added fewer domains than July (1,448). Year-on-year growth was +1.0% in both months. It hasn’t been that high for two years.
If another 1,000+ domain names are added in each of September and October, we’ll reach a new peak.
Renewal rates look less rosy
Every month, a number of .nz domains are due for renewal. Most are renewed for another year or more, and some are allowed to lapse. Renewals far outnumber new domain registrations, so they play a large part in the overall state of the namespace.
The renewal rate is the percentage of expiring domains that are renewed each month. If it ever reached 100%, it would be impossible for the namespace to shrink.
Historically, 90% was a fairly normal renewal rate. That meant that, so long as there were enough new registrations to replace one-tenth of expiring domains, then growth would (or could) follow. Small-sounding shifts affect this maths quite a lot.
Drop the renewal rate slightly to 87.5%, and one in eight expiring domains will lapse. Go as low as 80% and one in every five expiring domains need to be replaced by a new one just to stop the total from shrinking. Twice as many as if the renewal rate had stayed at 90%.
Today’s renewal rate is 85%. Before October 2022 that would have been the lowest ever, but today it’s unremarkable. The question is whether it’s a post-covid slump that will work its way out of the numbers (since domains can take up to 10 years to lapse, no matter when you stop using or wanting them), or if it’s a new normal.
Either way, it’s a drag on growth right now. The creation of new domain names is stronger than headline figures make it look.
Where to next?
If things keep going like they are, there’ll soon be more .nz domains than ever before. But as with any economic signals today, there are reasons not to be too optimistic. Renewal rates don’t look like they’ll improve quickly or soon, and on top of that the wholesale price of .nz domains went up by 22% in July. Individual retailers set their own prices, of course, but increases have been common, especially at the budget end of the market.
So any more bumps in the road could knock 2025’s good progress off course. Or we might be set for some more good news if enough New Zealanders feel confident enough to start a new business, or expand online, or even just start blogging about something interesting.
A quick word on .nz transfers: Earn account credits this month
Domain transfers don’t affect the overall namespace—a domain counts the same whether it’s in your SiteHost account or anywhere else—but there’s good reason to shift .nz domains to SiteHost today. Between now and the end of the month, we’re offering account credits for every transfer, up to a total of 1,000 domains. Especially if prices are biting harder than they used to, it’s an offer worth considering.
Every dollar, and every domain, counts.