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 is rising towards the top of the last 10 years. 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.

2018 sees the continuation of growth in the Auckland market, but very slowly. The thick black line of 2018 is the highest it has been in 8 years.

Turnover does not appear to be a driver either. I cannot put turnover as a percentage on the same chart so have multiplied it by 1000, 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.

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.

Jonette 2011