Auckland rental growth slows in late 2024, Barfoot & Thompson data reveals
According to the latest data from Barfoot & Thompson, which manages more than 17,500 tenancies in the Auckland region, the pace of rental increases slowed throughout 2024.
By the end of December, the average weekly rent in Auckland was $689.78, representing a 3.89% increase from the previous year, or an additional $26 per week.
This rise is less steep compared to the peak increase of 5.69% in March, which added about $36 per week, and follows a previous slowing to 4.81% in September.
Rental market dynamics and influencing factors
Grant Sykes (pictured above), general manager of sales at Barfoot & Thompson, attributed the slowdown to reduced market pressures that had initially escalated rental costs in early 2024.
“In early 2024, tension between high demand and constrained supply was intensified by factors like the return of long-term visitors and international students to the city, record-high net migration and even the ongoing impact of 2023’s extreme weather events,” Sykes said.
As the year progressed, these conditions began to stabilise.
“Since mid-year, things have begun to level out, with a continued decline in net migration through decreasing arrivals and increasing departures,” Sykes said.
He also said that new rental listings in Auckland might be coming from property owners who are renting out their homes while living overseas.
Local insights and seasonal adjustments
Barfoot & Thompson, which operates more than 65 branches across Northland, Auckland, Waikato, and Bay of Plenty, also benefits from direct feedback from the field.
Property managers reported that many tenants were focusing on getting through the end-of-year holiday season rather than moving, which subdued rental market activity in the typically busier spring months.
Despite this slowdown, there has been a pickup in activity since late December.
“That said, property managers have been reporting a noticeable shift since late December, with more looking for new properties and attending property viewings,” Sykes said.
Between mid-December and mid-January, Barfoot & Thompson recorded an average of nearly 900 rental inquiries and over 100 rental applications per day, indicating a revived interest in the rental market as the new year begins.
To read Barfoot & Thompson’s Auckland’s Quarterly Rental Update, click here.
