\ Auckland | Rental Market Stats | Jonette Ltd

Auckland

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 again following the trend of 2018, 20% or more above 2017. 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 Housing NZ or council housing suppliers.

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

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 in the chart below, with New Bonds, Listings and a calculated Turnover (new bonds/Listings) to show tends. As you can see it has barely changed in 10 years.

A small change appeared to be beginning late 2018, but this evaporated with new bonds reducing a little.

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