Pressure on Auckland rents eases, rent rise dips under 5 percent

The average weekly rent paid in Auckland was 4.81 percent 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 percent for the first time this year. The annual increases measured over the previous three quarters were: December 2023 up 5.27 percent; March 2024, 5.69 percent; and June, 5.59 percent.

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 percent against 3.81 percent.

“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.”

See table of averages by area and property size: 

The tables above are based on statistics drawn from a portfolio of approximately 17,500 Auckland-based rental properties managed by Barfoot & Thompson during September 2024. 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’.

For further information contact Samantha Arnold, Barfoot & Thompson, 021 883 346, www.barfoot.co.nz. Released on behalf of Barfoot & Thompson by Network Communication: Megan Green, 027 221 7126, megan.green@networkcommunication.co.nz 

Barfoot & Thompson knows Auckland best. It is the city’s leading real estate company, selling around one in three Auckland residential homes.