Climbing back: .nz domains are near a new record

Last time we looked at the total number of .nz domains, up to November 2023, the story of the day was shrinkage. From a peak of over 758,000 domains, the industry had dropped below 747,000. As we reported, “The fastest-ever decline in .nz domains started in mid-2023, and it hasn’t finished yet”.

The view from today is more positive. Things turned around at the start of 2024, and that year saw overall growth of 2,746 new domain names. It was uneven though, with two downward slides in the mix. A good year, but not a great one.

There were good times in 2022, grim times in 2023, and an uncertain rebound in 2024. So far 2025 has been another improvement. If that sounds like a description of doing business (or even just shopping) in New Zealand, then domains are an economic signal worth watching.

According to data from the Domain Name Commission (DNC), 2025 is looking better again. Their numbers go up to July, and show month-on-month increases all year. For the last period of such sustained growth, you need to go back to the summer of 2022-23.

We believe that growth is probably slowing but will continue. If we’re right about that, then there’s a tantalising question to answer. Is the .nz namespace, as it’s known in the industry, on track to reach its largest ever size?

The highwater mark (758,495 domains, to be exact) was set in June 2023, and we're within 3,000 of that number now. In boom times, it would take one or two months to make up that ground. But these are not boom times.

Slow and, hopefully, steady

The current growth rate is not exactly blistering, but it’s positive. In July year-on-year growth hit 1% for the first time since August 2023. For comparison, over in Aussie auDA put the equivalent figure for .au domains at 0.7%.

If New Zealand can hold onto 1% annual growth, we’ll hit a new peak before Christmas. Speeds things up to 1.3% and we're there just after Labour Day. Slow down to Australia's current growth rate and it would be more like Waitangi Day.

So the important question is what's affecting the growth rate? What was different between today and 2022, when it was up above 2%?

Today's renewal ratio is a drag

There are three contributors to the way a domain namespace grows or shrinks:

• Every new domain that is registered (known as a “create”) is a plus.
• Every old domain that isn't renewed (a “delete”) is a minus.
• The renewal ratio, which is the proportion of existing domains that are re-registered for another year or more, is the underlying foundation.

A high renewal ratio rates put a stable base under each month’s creates and deletes. Lower renewal rates mean that you need to create more new domains just for the total to stay where it is.

For years, ratios above 90% were normal, which is to say that 90% of all expiring domains were renewed. But since October 2022 there’s been a big change. This was one of driving forces behind the shrinkage of 2023, and it is still in an unusually bad state. Lower-than-average renewal rates are still slowing down growth.

Small-sounding changes can make a big difference. When renewals ran at 80%, NZ needed to replace 1 in every 5 expiring domains just to stay where we were. At 90% that would be halved to only 1 in 10.

The sharp drop down to December 2023 was probably a post-covid shakeout working its way through the system. July's ratio has improved to 86%.

We can’t say for sure whether the old norm of 90% will return, but if the slump was a pandemic induced one-off then it will wear off eventually.

To put that another way, a lot of un-renewed domains were probably related to lockdown side-hustles and other things that now feel like they’re from another era. Domains can be registered for as many as 10 years, so it can take time to go from the day you realise that homemademasksforvideocalls.co.nz isn't such a good idea anymore to the day that domain name lapses and pulls down on the renewal ratio.

The renewal ratio started slowly climbing in December 2023 but a return to 90% still looks a long way off. Until we are there, namespace expansion is likely to be slow at best.

Why this all matters: The internet and the economy

We see the overall domain industry as an economic indicator. There are two main reasons to pay for (or retain) a domain: because you’re starting or expanding a business, which is a signal of economic activity, or because you’re happy to spend some money on a personal project or hobby, which includes an element of consumer confidence. Either way domain registrations are a useful if imperfect economic signal.

There were good times in 2022, grim times in 2023, and an uncertain rebound in 2024. So far 2025 has been another improvement. If that sounds like a description of doing business (or even just shopping) in New Zealand, then domains are an economic signal worth watching.

Higher .nz prices from July

Everything we’ve looked at in this article is based on data up to July 2025. As it happens, that was the same month that InternetNZ added 22% to the wholesale price of .nz domains. Many retailers, including us, were unable to swallow that sort of increase without raising prices.

Next time we check in on the industry's growth or (lack of it), we'll need to remember that higher prices could lead to lower demand.

Could your .nz domain be cheaper?

Note: Prices quoted below are accurate as of August 2025.

As well as all the stats we've already looked at, the DNC also reports on pricing. Their current median .nz domain price is $38.50, which is well above what you'd pay here at MyHost.

The same .nz domain carries a different cost at different retailers. The bottom line is that our .nz price, $29.95/yr (excl. GST), is lower than the regular renewal prices at:

• Freeparking - $53.99
• HostPapa - $39.95 plus another $39.95 for so-called “essentials”
• Discount Domains - $38.95
• Crazy Domains - $35.

Every dollar counts, and by transferring your .nz domains to us, you can save money over any of these competitors - and many others. Even better, before the end of September you can earn account credits for every .nz domain you transfer.