Rental Update: Pressure on Auckland rents eases, rent rise dips under 5%

The average weekly rent paid in Auckland was 4.81% higher in September 2024 than one year ago, rising by $31.44 to $685.47.

The statistics are drawn from more than 17,500 tenancies managed by Barfoot & Thompson in the Auckland region, tracked monthly against previous activity and released quarterly. This update ends 30 September.

September’s rise is indicative of the pressure on Auckland rents easing slightly, as the annual increase dipped under 5% for the first time this year. The annual increases measured over the previous three quarters were: December 2023 up 5.27%; March 2024, 5.69%; and June, 5.59%.

Barfoot & Thompson’s General Manager for Property Management Samantha Arnold says the latest data for Auckland’s average rents showed that easing was across the board, with only one area of the region, Rodney, registering slightly higher than last quarter – 3.82% against 3.81%.

“The signs of a potential easing in activity levels and pricing began to emerge last quarter in some areas of the region, and we are seeing some of that bed in further this quarter.

“We anticipate a general settling in the pace of renter activity and rental pricing moving forward.

“There are existing factors, such as some renters holding off on moves to help manage pressure on their household budgets and landlords choosing to hold rents to retain steady tenancies, and more recent influences, like the fall in migration gains evident in the Government’s June figures.

“These figures showed the number of arrivals has dropped from the 2023 peak, while the number of departures has increased.

“Some of our property managers are seeing elements of this in their day-to-day work too, with an uptick in appraisals for property owners considering renting their home when they move overseas. This trend will almost certainly impact the stock of rental properties.”