Quarterly Rental Update: Auckland’s Average Rent Holds Above $600 Per Week Through Second Quarter

Auckland’s average weekly rent ticked over the $600 mark in April and finished the second quarter with a June average of $605, according to data from more than 16,500 rental properties managed by Barfoot & Thompson.

Director Kiri Barfoot says that the figure is in keeping with the anticipated annual increase in rents across the city.

“The year-on-year increases in average rent have hovered between 2 and 3 per cent each year for the past several years, with exception of the second and third quarters of 2020 when the Government-mandated rent freeze was in place.

“June’s figure represents a 0.3 per cent increase on May’s average – or around $2 more per week, and 2.9 per cent year-on-year, or roughly $17 more per week.”

However, what has altered over time are the drivers behind the changes, which can cycle between housing types, sizes, and locations and depend on multiple factors.

“Over the past couple of quarters rents in some of the higher-priced areas, like the Eastern Suburbs and now the North Shore, have become more static, while the lower-priced areas of South Auckland, West Auckland and Rodney are now rising more quickly.

“For example, Rodney has seen significant migration and development recently. Just two years ago it was seeing relatively little movement, under 2 per cent, but is now well over double that rate.

“And while the average rents in the South and West have risen at a greater rate than other areas, they remain the lowest-priced regions of the city behind rural Manukau/Franklin.”

The ‘typical’ three-bedroom rental property remains the most popular and available option and has also experienced slightly higher than average weekly rent increases at 3.6 per cent.

ENDS

Based on statistics drawn from a portfolio of 16,500+ Auckland rental properties managed by Barfoot & Thompson during the month of June 2021, and compared to June 2020. This includes both existing and newly signed tenancies. All prices have been rounded to the nearest dollar. Please note: While previous Quarterly Rental Updates have drawn figures from the entire three-month quarterly period, this update (and future intended updates) use figures from the final month of the quarter only. This method provides the latest pricing information. Monthly rental statistic reports are also available on the Barfoot & Thompson website under ‘Market Reports’ here.

© Scoop Media