Rents in Auckland close to flatlining as housing supply catches up with demand
By Greg Ninness
The national median rent for residential properties increased by $40 a week in the 12 months to September, although the annual rent increase in Auckland was much lower at just $10 a week.
According to the latest rental figures based on bond data from Tenancy Services, the national median rent increased to $540 in the third quarter of this year from $500 a week in the third quarter of last year, giving annual growth of 8%.
Most of the bonds received by Tenancy Services would be for new tenancies, which makes their figures a leading indicator of rental movements because new tenancies set the market rate that rents for existing tenancies are adjusted to as they come up for review.
The latest figures show some big regional variations suggesting big differences in the availability of rental housing in different parts of the country.
The amount by which rents have increased over the year to September ranged form zero in Taupo, where the third quarter (Q3) 2022 median rent of $450 a week was unchanged from a year earlier, to $75 a week (+17.9%) in Masterton.
Ashburton, Timaru and Invercargill were in a three-way tie for having the cheapest median rents in the country at $400 a week, while Porirua had the most expensive median rent at $650 a week, surpassing Tauranga at $630 and Queenstown-Lakes at $620. See the first table below for the median rent in the main urban centres throughout the country.
A notable feature of the latest figures is the very weak rental growth in the country's largest city, Auckland.
The median rent in Auckland increased from $580 a week in Q3 2021 to $590 in Q3 2022, giving an annual increase of just $10 (+1.7%).
The second table below shows the annual change in median rent by Auckland Council ward areas, and this shows median rents declined in three wards; Waitemata & Gulf, Whau and Orakei between Q3 2021 and Q3, 2022, and were unchanged in another four wards; Albert-Eden-Roskill, Maungakiekie-Tamaki, Manurewa-Papakura and Franklin. The map below shows the ward boundaries.
The modest overall increase in Auckland's median rent compared to other parts of the country comes after a period in which there has been no migration-driven population growth while construction of new homes has proceeded at pace, and the relative rent stability suggests the supply and demand for rental housing in the region are largely back in balance for the time being.
This story was originally published on Interest.co.nz and has been republished here with permission.
