Quarterly Rental Update: Auckland Rental Market Continued To Cool Over Summer Period

The following statistics are drawn from more than 17,500 tenancies managed by Barfoot & Thompson in the Auckland region, tracked monthly and reported quarterly. This update captures the period to 31 March 2025. Comparisons are for the same period the previous year unless otherwise stated. See tables at the end for more detailed references.

The Auckland rental market continued to cool over the summer period, with a slower increase in average weekly rent prices and a quieter season of renter activity recorded during the first quarter of 2025.

The average weekly rent for a home in Auckland registered $691.55 at the end of March 2025. This was up 2.75% or $18.49 on the same period last year, but was just $1.77 more than the average paid in December 2024 ($689.78).

Barfoot & Thompson’s General Manager of Property Management Anil Anna says the data shows that rental pricing has continued to stabilise following a period of more rapid, demand-driven growth.

“The rate of rental price increases reached a recent peak of 5.69% in March 2024, driven by a combination of factors including population growth bolstered by strong net-migration, the return of visitors and overseas students, and constrained housing supply.

“On the whole, these pressures eased through the rest of 2024, and we’ve observed a slow downward trend in rental price increases as a result.

The rate of increases was 5.59% year-on-year at the end of June 2024, 4.81% at end September, and 3.89% at end December.

Mr Anna also noted that while the summer period is typically one of the busiest in the rental calendar, the upswing began later this season, and did not build to the very high levels usually seen.

“During this same period there has been mounting strain on household budgets and tougher broader economic conditions, so it’s likely some renters are holding back from taking on the added costs of moving or a potentially higher rent at a new property.

“Generally speaking, properties are taking a little longer to let and pricing is proving important to generating good interest.

“I encourage landlords to engage a professional property manager to provide the latest insights on pricing in their area.

“For those still wanting to make a move, now is a good time, with a range of choice available in the market.”

Looking at the various market segments, by size, one-bedroom properties, largely made up of apartments in Auckland central and the city fringe, saw the most price growth year-on-year, up 3.19% or $14.25 to a new average weekly rent of $460.35.

During the same period, three-bedroom homes, which make up the majority of rental stock in the region overall, also experienced one of the greater price increases year-on-year, rising 3.01% or by $20.29 per week to an average of $693.93.

By area, South Auckland recorded the strongest annual growth, up 4.10% to an average of $636.10, followed by Franklin/Manukau Rural, up 3.77% and North Shore, up 3.54%. In the south, this growth was driven particularly by pricing of large properties of five or more bedrooms.

Average weekly rent received across Auckland, March 2025

The table above is based on statistics drawn from a portfolio of approximately 17,500 Auckland-based rental properties managed by Barfoot & Thompson. This includes both existing and newly signed tenancies. These figures are compared to the same time last year, to show a percentage change. These statistics are reviewed and released quarterly, however, monthly rental statistic reports are also available on the Barfoot & Thompson website under ‘Market Reports’.

Barfoot & Thompson’s Property Management division operates in company branches across Auckland and Northland, as well as parts of the Waikato and most recently, the Bay of Plenty.

Together, the division manages nearly 20,000 rental properties and employs more than 300 property managers and support staff.

In Auckland, it manages around 17,500 properties at any one time. Three-bedroom properties represent over a third of this portfolio, followed by two-bedroom properties at just over a quarter.

Across Auckland, it manages the most properties in West Auckland (>2,500), followed closely by South Auckland, North Shore and the Eastern city fringe suburbs. The division’s data from Central Auckland is made up of almost entirely apartments.

© Scoop Media