It’s now May and demand is looking like it is not keeping up with supply in Auckland. The sharp change upwards in February has continued as more properties come onto the market. Listings are now almost as high as the peak of 2009. Is the building boom getting out of control already? This market is dangerous for investors.

Increasing numbers of private rentals are becoming available in Auckland. Inventory continues to rise towards the top of the last 10 years, now higher than all years but 2013. There is absolutely no shortage of properties available for rent in the private market. That does not exclude the possibility of a severe shortage of properties in the subsidised rental market, namely the Government or council housing markets.

I can put the private housing level in context though, there are almost 150,000 private rental homes in Auckland, while there are almost 28,000 HNZ properties in Auckland, ie 84% are private.

2019 sees the continuation of growth in the Auckland market exceeding 2018 almost immediately.

Turnover does not appear to be a driver either. I cannot put turnover as a percentage on the same chart so have indexed it to 1000 in 2009, as you can see it has barely changed, listings are close to equalling new bonds, suggesting it takes about a month to tenant a new listing.

A small change appears to be beginning late 2018 - watch this space

Turnover in Auckland contrasts with Wellington where there is a serious shortage of listings

This is how Auckland rents compared with household incomes for Auckland Territorial Authorities. It is obvious from this chart that prices are linked to incomes. Household income includes wages, salaries and government payments, and may of course include multiple earners.

Jonette 2011