\ Auckland | Rental Market Stats | Jonette Ltd

Auckland

It’s now August and supply is looking like it is finally reducing in Auckland. The sharp change upwards in February reversed in July as fewer properties are available. Listings are now down to 2017 levels after following the 2018 line most of this year. This market continues to be dangerous for investors with the market for private rentals overstocked, but change may be in play.

There is 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 or even corporate 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 (Speed of Listing Updates)

Turnover does not appear to be a driver either as shown in the chart below there is little change in the last year. I cannot put turnover as a percentage on the same chart with Bonds and Listings, so have indexed it to 1000 at a point where I believe there was equilibrium, ie the middle of the chart above, with New Bonds, Listings and a calculated Turnover (new bonds/Listings) to show trends. As you can see it has barely changed in 10 years, but listings and bonds have swapped as demand and supply moved independently.

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

Rents as % of income in Wellington Was

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.

North Shore and Auckland City are clearly where people have been prepared to pay a lot more of their HH income as rent.

Auckland little

Jonette 2011