Media Release: Auckland rents start year on the rise; Plus - the latest ‘pet-friendly rental’ data

Auckland rents edged up again in the first three months of 2024. Barfoot & Thomspon says pricing

data from more than 17,500 properties the agency manages across the region shows the average
weekly rent reached $671.35 in March 2024, up 5.69% on the same time last year.

This surpasses a 5.27% year-on-year increase recorded in December 2023 which, at the time, was the
highest since 2015.

Barfoot & Thompson’s General Manager for Property Management Samantha Arnold says the
numbers indicate the market has entered a new pricing cycle.

“Over the past six to nine months the Auckland rental market has been emerging from a slower
period of pricing change after hovering around 3% year-on-year for some time.

“What we are seeing now is more familiar to the market pace experienced eight to ten years ago, in
2014 to 2016.”

She says the tension between high demand for rental properties and constrained supply continued to
be a major factor.

“This is not a new dynamic for Auckland, but it has been compounded by several coinciding factors
including the return of long-term visitors and international students, record high net migration and
the ongoing impact of 2023’s extreme weather events, which saw more people in need of housing
and fewer houses available due to storm damage.”

Property owners have also been grappling with higher interest and operating costs, says Arnold, with
relief through interest deductibility and tenancy rule changes still to come into effect.

Across the region, rents rose fastest in the Central City apartment market as it continued its post-Covid rebound. The average rent there reached $573.74 in March, up 8.56% on 2023. Rents rose slowest in Rodney, up 3.75% or $24.23 on March 2023, to $670.07.

By size, one-bedroom properties attracted higher rent rises, up 6.87% on last year, while threebedroom properties saw less price pressure than other sized homes, up 5.00%.

The latest data on renting with pets
Barfoot & Thompson tracks a number of property attributes across the agency’s rental portfolio,
including whether a rental is ‘pet friendly’.

“The Government recently announced several changes to the Rental Tenancies Act related to pets,
prompting us to take a look at what’s happening in the market now, prior to the changes coming into
effect,” says Arnold.

“The latest figures show that around 14% of Auckland rentals allow pets. This equates to around
2,500 properties of the 17,500 plus that we manage in Auckland.

“We’ve been providing advice and guidance about renting with pets to both our property owners
and renters over many years to encourage growth and are excited by what the latest changes to the
Act will mean for renter choice and property owner confidence.”

The data shows the North Shore had the highest proportion of pet-friendly rentals as of March 2024,
with around 21% of properties welcoming pets, while it was hardest to find a pet friendly rental in
Central Auckland apartments, where less than 2% of properties allowed them.

Comparing average weekly rents between properties that do and don’t allow pets, Barfoot &
Thompson also found that pet friendly rentals were already drawing a premium of around 10% more
than the average for a home in the same area, however this varied greatly between different parts of
the city.

“City and city fringe properties were priced around 20% to 40% higher when pets were allowed.
However, that pricing may also reflect those properties, such as apartments, are typically less suited
to pets, so those that allow them may be larger or unique in a way that naturally demands a higher
price.”

Pet lovers in Pakuranga and Howick pay the lowest premium to rent with their furry friends, just
1.12% higher than the local average.

“Another thing we noted is the contrast between the number of fenced properties which can be a
particularly important factor for dog owners.

“Fewer than 2% of rental properties were listed as fenced. And while we expect the real number is
higher, it highlights an aspect renters and property owners need to consider before deciding if a
home is suitable for some types of pets.”