September quarter data released today shows the average weekly rent paid in Auckland has tipped over $650, with the
region’s rental market recording one of its biggest increases in years.
Barfoot & Thompson, which manages more than 17,000 rental properties in Auckland alone, says the average weekly rent paid across
all its tenancies was $652.19 in September, up 4.44 percent or $27.74 over the same time last year. The most notable
moves in pricing were observed in new tenancies, rather than existing ones.
This follows two years of relatively steady change, ranging between 2.97 and 3.37 percent year on year, and marks the
first time in five years where a percentage increase above 4 percent has been recorded.
General Manager of Property Management at Barfoot & Thompson, Samantha Arnold, says there were several factors behind the lift.
“Firstly, we are seeing the continued recovery of the City Central segment as people return to the area, coupled with
constrained supply, come through in these figures.
“The city apartment market saw an 8.43 percent or $43.18 per week rise this quarter. It’s a significant shift from the
almost flat line we saw through 2020, 2021 and much of 2022 and is feeding into the higher overall average.”
However, more significantly, she says the ‘gear shift’ in pricing coincides with a record-breaking period for migration
into the country.
“The latest statistics show net migration began to exceed 100,000 in the second half of this year, and annual arrivals
to the country reached an all-time high of 225,400 for the year ending August 2023.*
“With many migrants attracted to cities like Auckland, we believe significant demand for housing is putting pressure on
available stock, and therefore pushing prices up.”
Arnold says the company had more than 2,000 properties listed during the three months ending 30 September, hosted more
than 27,500 people at viewings, and processed more than 20,200 applications.
And while the company’s average weekly rent figure captured all rentals, she said the most notable moves in pricing were
being observed in these new tenancies: “New tenancies are at the pointy end of where increased demand meets constrained
supply.”
Across the region, on average, the highest average weekly rents were paid for large city-fringe residences and homes on
the North Shore. Properties in the south of the city remained the least costly places to rent, however homes in
Franklin/Rural Manukau continued to attract the second highest increase in rents after the central city, up 6.50
percent.
One-bedroom properties attracted the highest increase, up 5.91 percent, likely reflecting the resurgence in demand for
Central City apartments.
*StatsNZ figures released 11 October 2023 https://www.stats.govt.nz/news/net-migration-exceeds-100000Average weekly rent received across Auckland – September 2023No BedroomsYear-on-year % increaseFocus area12345+Average by Focus AreaRodney$406.05$532.40$634.87$770.46$895.00$655.933.42%North Shore$462.69$554.65$683.10$827.69$1,001.80$689.843.18%West Auckland$407.22$524.78$608.23$732.68$873.55$612.034.43%Central Auckland$442.89$632.51$938.71$779.29$1,16.67$555.538.43%Central Auckland West$493.51$599.28$786.50$891.73$1,222.29$702.211.61%Central Auckland East$430.72$559.05$704.62$894.58$1,139.10$678.323.19%Eastern Suburbs$438.24$593.62$751.92$954.80$1,214.89$782.213.93%Pakuranga/Howick$422.86$543.49$657.15$790.35$948.33$713.465.55%South Auckland$369.89$484.22$605.88$716.98$841.61$594.364.74%Franklin/Rural Manukau$382.40$455.96$554.64$661.09$756.43$575.626.50%Average by No Bedrooms$431.78$551.39$656.63$795.32$972.08$652.934.44%Year-on-year % increase5.91%4.53%4.04%3.96%4.23%4.44%Average weekly rent comparison over the past ten yearsSep 2014Sep 2015Sep 2016Sep 2017Sep 2018Sep 2019Sep 2020Sep 2021Sep 2022Sep 2023Average weekly rent$462.83$494.47$520.00$544.65$562.87$578.01$587.02$604.59$625.19$652.93Year-on-year % increase5.08%6.84%5.16%4.74%3.35%2.69%1.56%2.99%3.41%4.44%
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 2023. This includes both existing and newly signed tenancies.