Auckland Rental Prices Inch Up Again, But Upward Trend Could Ease In Coming Months

Quarterly Rental update:

Data from nearly 16,000 rental properties managed by real estate agency Barfoot & Thompson shows Auckland’s average weekly rent rose by $6.12 (or 1 percent) during the second quarter, to $622.44 per week at the end of June 2022. When compared to a year ago, the increase is 3.27 percent, or $19.70 more per week.

Barfoot & Thompson Director Kiri Barfoot says the figures are consistent with the trend observed over recent quarters, which typically sit around 3 percent year-on-year, but notes there are a wide range of factors at play.

“The market has been catching-up off the back of frozen and slower-moving rents in 2020 and early 2021.

“At the same time, property owners have been working to accommodate new levels of compliance and higher operating costs, including rising interest rates and the removal of tax deductibility.

“All of these have put pressure on rental pricing, although the recent increases have been quite measured compared to the 5 and 6 percent peaks we’ve seen in the past.

“And contrary to the current trend, we may see rent increases ease in the months to come.”

While not visible in the agency’s current data, Ms Barfoot says she is hearing of instances across the country, including in Auckland, where properties are becoming slower to rent or need a reduction in price to meet the market.

“This could be partly seasonal – we often see people hunker down in the winter months, but the driver is more likely to be the rising cost of living. People are grappling with very tight budgets, and property owners will be recognising the importance of a shorter vacancy and a sustainable tenancy over higher yield.”

Central Auckland properties – dominated by apartments, were the cheapest this quarter at an average of $511.90 per week in June, while homes in the Eastern Suburbs were the most expensive at an average $702.17 per week.

West Auckland, South Auckland and Franklin all offered average weekly rents under $600 per week.

By size, four bedroom homes attracted the most price growth at 3.76%, while 1 and 2 bedroom homes attracted the least.

For the typical Auckland rental, a three-bedroom home, the average weekly rent was now $628.10, up 3.46 percent or approximately $21.01 per week on a year ago.

The tables above are based on statistics drawn from a portfolio of approximately 16,000+ Auckland rental properties managed by Barfoot & Thompson during June 2022 compared to the same period in previous years. This includes both existing and newly signed tenancies.

Please note: The company has recently moved to a new data tracking system, which may see minor differences in the samples used within previous updates. It also includes a finer breakdown in focus areas to include sub-sets of the Auckland central area.

Monthly rental statistic reports are also available on the Barfoot & Thompson website under ‘Market Reports’.

For further information contact Kiri Barfoot, Barfoot & Thompson, 021 885 502, www.barfoot.co.nz

Barfoot & Thompson knows Auckland best. It is the city’s leading real estate company, selling around one in three Auckland residential homes and managing more than 16,000 rental properties.

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