Annual rent increase dips below 5%
Auckland’s average weekly rent rose by 4.81% in September 2024 compared to the previous year, increasing by $31.44 to reach $685.47.
This data, gathered from over 17,500 tenancies managed by Barfoot & Thompson, reflects a monthly tracking of rental activity and is released quarterly, concluding on Sept. 30.
Annual rent Increase dips below 5%
This month’s figures indicate a slight easing of pressure on Auckland rents, as the annual increase dipped below 5% for the first time this year.
Previous quarterly increases were measured at 5.27% in December 2023, 5.69% in March 2024, and 5.59% in June.
Insights from Barfoot & Thompson
Samantha Arnold (pictured above), general manager for property management at Barfoot & Thompson, noted that the easing in average rents is evident across the board, with only one area – Rodney – registering a slight increase of 3.82% compared to 3.81% last quarter.
“The signs of a potential easing in activity levels and pricing began to emerge last quarter in some areas of the region, and we are seeing some of that bed in further this quarter,” Arnold said.
“We anticipate a general settling in the pace of renter activity and rental pricing moving forward.”
Factors influencing rental trends
Arnold highlighted various factors influencing the rental market, including some renters postponing moves to manage household budgets and landlords opting to hold rents to maintain steady tenancies.
Recent data from the government’s June figures showed a decline in migration gains, with arrivals dropping from their 2023 peak and departures increasing.
“Some of our property managers are seeing elements of this in their day-to-day work too, with an uptick in appraisals for property owners considering renting their home when they move overseas. This trend will almost certainly impact the stock of rental properties,” Arnold said.
For further details, visit the Barfoot & Thompson website to read the full article and view the table of averages by area and property size.
