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A Stable Year for Auckland Rental Prices

Media Statement
April 16, 2014

A Stable Year for Auckland Rental Prices

The Auckland rental market has experienced a steady year, with a four percent increase over the last 12 months.

Figures released by Barfoot & Thompson show that the average rent ‘in force’* for a three bedroom property in Auckland in March was $464 a week.

“We have seen a steady, moderate increase in rental prices across Auckland, which is good news for the tenants,” said Kiri Barfoot, a director of Barfoot & Thompson.

“It would be easy to make the assumption that higher property costs across Auckland would be passed on through the rental market, but this is not happening. Landlords have long recognised the value in retaining good long-term tenants.

“While the past 12 months has been solid, the rental market is not immune to wider market trends. As demand for property in Auckland continues to increase and we wait for new consents to be completed and come into the market, the rental sector will experience even greater demand and it is inevitable prices will rise.

“We are already seeing larger numbers of people choosing to rent rather than join the property ladder. The 2013 Census indicated that less than half the population now own their own home and that Auckland has the second lowest rate of home ownership in the country.

“LVR restrictions brought in by the Reserve Bank in October, along with the anticipated rise in mortgage rates and the increasing demands on the Auckland property market, are some of the reasons we are seeing more people opting to take a long-term perspective when renting.”

The most expensive location in which to rent a three bedroom home is the Eastern Suburbs, where the average weekly rent is now $541 while the least expensive location is Franklin and rural Manukau, where the average rental cost is $365.

Properties with five or more bedrooms have on average only increased by two percent over the past 12 months. However, in West Auckland these properties have increased by eight percent, whilst in the Eastern suburbs they experienced a five percent decrease in the average weekly rental.

*The average in force rental is the sum of all rentals for three bedroom homes. It is not the rent for new contracts signed in March. As of 1st April Barfoot & Thompson was managing 4498 three bedroom homes on behalf of landlords.

ENDS

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