Summer slowdown: Auckland rent growth tapers in Q1
The latest figures from Barfoot & Thompson showed a noticeable easing in Auckland’s rental market during the early months of 2025.
Average weekly rents rose just marginally over the summer, while tenant activity remained subdued—traditionally a peak period for rentals.
As of March, the average weekly rent in Auckland sat at $691.55, a modest 2.75% increase from the same time last year.
However, compared to December 2024, the rise was just $1.77, reflecting a continued moderation in rental inflation.
This moderation reflects not only reduced tenant demand but also a sharp 40% increase in rental listings over the past quarter, which has expanded supply and softened market conditions.
According to Anil Anna, general manager of property management at Barfoot & Thompson, this softening follows a period of strong growth.
“The rate of rental price increases reached a recent peak of 5.69% in March 2024, driven by a combination of factors including population growth bolstered by strong net-migration, the return of visitors and overseas students, and constrained housing supply,” Anna said.
“On the whole, these pressures eased through the rest of 2024, and we’ve observed a slow downward trend in rental price increases as a result.”
Renters take a pause as costs bite
Traditionally, summer months bring a flurry of activity to the rental market, but 2025’s upswing arrived late and remained muted.
Anna noted that affordability constraints may be keeping renters in place.
“During this same period there has been mounting strain on household budgets and tougher broader economic conditions, so it’s likely some renters are holding back from taking on the added costs of moving or a potentially higher rent at a new property,” he said.
“Generally speaking, properties are taking a little longer to let and pricing is proving important to generating good interest.”
Small properties see steady climb; South leads regional growth
Among property types, one-bedroom units—many of which are central-city apartments—saw the sharpest price rise, climbing 3.19% to reach an average rent of $460.35.
Three-bedroom homes, the most common rental size in Auckland, increased 3.01% year-on-year to $693.93.
By region, South Auckland led the way in rent growth, jumping 4.10% to an average of $636.10, followed by Franklin/Manukau Rural at 3.77%, and North Shore at 3.54%. In the south, larger homes with five or more bedrooms contributed to the stronger upward pressure, Barfoot & Thompson reported.
Insights for landlords and tenants
With homes taking longer to lease and pricing sensitivity on the rise, Anna advises landlords to seek expert advice.
“I encourage landlords to engage a professional property manager to provide the latest insights on pricing in their area,” he said. “For those still wanting to make a move, now is a good time, with a range of choice available in the market.”
Barfoot & Thompson’s property management arm oversees nearly 20,000 rentals, including 17,500 in Auckland. The majority are three- and two-bedroom homes, with the highest concentration of properties in West and South Auckland, followed by the North Shore and eastern fringe suburbs.
