Auckland has experienced the slowest rate of rent increases in years, according to quarterly data from Barfoot & Thompson.
“Rent increases trended down for most property sizes and areas throughout last year, and this persisted in the final months of the year, with the lowest rates of change yet,” Barfoot & Thompson director Kiri Barfoot says.
In Rodney, the average weekly rent rose by just 2.2 per cent year-on-year during the fourth quarter of 2018. Across Auckland, the increase was 3.1 per cent over the same period.
The average rent paid for a house in Rodney over the same quarter was $559, just slightly lower than the Auckland average of $567 a week. Franklin/Manukau (rural) had the lowest average rental rate of $475, while the eastern suburbs had the highest at $653 a week.
“This slower, more steady rate of change is good news for renters, particularly when compared to the increases of $24 or more that we’ve seen in recent years.”
She says what remains to be seen is how the market will accommodate the regulatory changes bedding in now, such as the removal of letting fees and potential future changes to come from the Residential Tenancies Act review.
“While rents are still going up, it is unlikely the current rates of increase are keeping pace with landlords’ rising operating and compliance costs, nor are we seeing the same level of capital gains which were appearing in many landlords’ calculations. We would expect that, eventually, something will have to give.”