Auckland rents have risen at their slowest pace in years, a new report has found. Photo/Janna Dixon
Auckland rents are rising at their slowest pace in years, a new report has found.
The cost of renting a "typical" three-bedroom Auckland home, between April and June, was up 3.5 per cent or $19 more a week higher than during the same period last year, Barfoot & Thompson's quarterly review of rent prices found.
Yet, despite the rise, the results showed landlords were no longer able to raise rents as quickly as before, company director Kiri Barfoot said.
"This is the smallest percentage increase in weekly rents that we have observed in at least the last two years and is also the first time the average increase has dropped below the $20 per week mark.
"Renting a typical three-bedroom home in Auckland between April and June this year cost 3.5 per cent or $19 more per week than it did during the same period in 2017.
"This time last year, the average increase in weekly rent on a three-bedroom home was more like $22, and in 2016 it was as high as $24."
The drop in rent prices across the first half of 2018, follows steady rises in rents last year and large jumps of 5 per cent in 2015 and 2016.
"We are likely seeing the beginning of a 'new normal' in rental price trends as landlords strike a fine balance in their pricing in the face of rising operating and compliance costs," Barfoot said.
It comes as analysts CoreLogic also released a report today showing Auckland Council continued to issue more consents to build new houses in the city during the month of June.
Senior analyst Kelvin Davidson says the "absolutely necessary house-building upswing" was great news.
"The general consensus seems to be that we're now at levels of construction in Auckland that at least stop the existing shortfall from getting any worse."
Barfoot & Thompson's findings were based on data from the more than 16,000 properties its agents manage with three-bedroom homes being the most common among these properties.
But - as with three-bedroom homes - weekly rents of properties of all sizes edged downwards this quarter to $559 per week but were still up 4 per cent on weekly rents at the same time last year.
One-bedroom properties bucked the trend and continued to rise in the last quarter to be up 4.6 per cent on rents during the same period last year.
"West Auckland was the only region of the city to experience price increases above 5 per cent, reflecting the growing popularity of the area among renters," the Barfoot report found.
More good news following the 4.8% jump from the previous event two weeks ago.