Media Release: Auckland's Quarterly Rental Update & Year in Review

                           Auckland’s Quarterly Rental Update & Year in Review:

• ·                     Market finishes year with measured pace
• ·                     Wider areas of region drive increase in average while Central City catches up
• ·                     Busy start to New Year could signal pressure on availability and price

The Auckland rental market continued at a measured pace through the final three months of 2022, finishing the year with an average weekly rent of $629.53.  

This is an increase of 0.55 percent or $3.45 on the previous quarter, and 3.29 percent or $20.04 on December 2021. 

“Overall, Auckland’s average weekly rent has moved at a very consistent rate throughout 2022,” says Barfoot & Thompson Director Kiri Barfoot, “rising less than 1.00 percent each quarter, and in a tight band of between 3.19 and 3.35 percent year-on-year.” 

Viewed alongside previous years’ data, Ms Barfoot says the pricing trend demonstrates how the market has gradually regained its pre-pandemic ground, without overshooting the mark.  

“After being at a standstill in early 2020, the average weekly rent has made incremental steps over the past couple of years to settle into a pattern of steady but measured growth,” she explains. 

“This is despite rapidly increasing operational costs, rising interest rates and peak inflation, indicating many property owners are balancing these pressures against considerations around tenant affordability and their desire to maintain longer-term tenancies.” 

Looking across Auckland, while weekly rents in most areas of the city have grown at a rate well under the average, a few areas in the wider areas of the region have been driving the average up.  

For example, the Pakuranga/Howick area recorded a 4.46 percent rise, South Auckland a 4.91 percent rise, and Franklin/Rural Manukau a 7.59 percent rise.  

“We are accustomed to this sort of pricing cycle when traditionally lower-priced areas become more in demand, and this is likely the case in Franklin particularly, where the average weekly rent for a typical 3-bedroom home is the lowest in the region.” 

At the same time, the area with the least increase in average rent – the Central City apartment market, which was up just 0.96 percent year-on-year in December, is also in “catch-up mode”.  

“It’s taken some time, but pre-pandemic pricing has now all but returned to the Central City as, with the return of students and tourists, demand has increased and supply remains relatively low.” 

Ms Barfoot encourages those looking to move into a new rental to start their search early this year. 

“We’re expecting to see more demand and less availability than the market has become used to recently, especially in and around the Central City, so renters should allow plenty of time to find and secure the right property for them.” 

ENDS