Not surprised at the competition. Was stressful when we were looking to rent for the first time in Wellington in our mid 20s and took a while to find somewhere. We'd had enough of flatting with strangers then my parents retired, and sold up and downsized so gave us all their old furniture/appliances which meant we could rent a place and not have to go out and buy everything to furnish it at the same time.
Was very competitive. Definitely remember going to viewings and handing in forms along with several other groups, then just never hearing back. Difficult not to take it personally too. We were 25 and 28 with decent jobs and good references from bosses and previous landlords (had been living in owner-occupied flatting situations so references from landlords who had actually lived with us) and couldn't understand what people were finding wrong with us. One place we were really keen on, and we called the landlord a couple of times after viewing saying so and that we could come around and pay the bond immediately but he just said he was having another viewing the next weekend so wanted to "give other people a chance and see who else comes." Having not been through it before it came as a shock that someone was turning down money like that and waiting another week in case anyone else turned up so put it down to him probably not wanting young people because he assumed they would have parties and wreck the place. But it wasn't like we were 19 year old students and presumably we'd be looking closer to town if we were like that, not out in Johnsonville. Eventually we got a text that he had chosen someone else.
Eventually got lucky as I happened to notice an ad for place that seemed to have everything we wanted within about 5 minutes of it going up on Trademe so I was first to call the landlord, and first to view it. We were really keen on it and after a call to his wife to check with her he was keen enough on us that we signed up on the spot. Seemed the tenants had unexpectedly handed in their notice early and he didn't want the hassle of seeing loads of possible tenants so it worked out well for him too. We've been in the place 4 years now and no plans to move until we're able to buy. It was sold towards the end of the 3rd year but thankfully to landlords who retained us. Seems too much hassle to go through all this and the actual packing, moving and unpacking just to rent again.
Ironically, we happened to notice the other place was up for rent again after a couple of months so it must not have worked out with whoever he chose in the end.