PHOTO: FILE
Auckland Homeowners Renting Out Properties as They Move Overseas, Contributing to Rental Market Slowdown
As more Auckland property owners choose to rent out their homes when moving abroad, the rental market is experiencing a noticeable shift. New migration data reveals a record net loss of 56,100 New Zealand citizens in the year ending August, with over half heading to Australia. This trend is significantly impacting the housing supply in Auckland.
Barfoot & Thompson’s General Manager, Samantha Arnold, confirmed that this migration trend is influencing the rental market in the region. “We’re seeing owners move overseas wanting to rent their properties out, but we’ve also got tenants moving overseas as well, creating a slight oversupply,” Arnold stated. She emphasized that while the boost in stock is not massive, it’s noticeable to those within the housing sector.
Auckland property developer and investor Du Val Group owes close to $240 million | WATCH
The migration changes are further reflected in Barfoot & Thompson’s recent rental data, which shows the average rent in Auckland is up by 4.8 percent compared to a year ago. This marks the first time rent increases have dropped below 5 percent this year. Typically, annual rent increases in the Auckland region fall between 5 and 8 percent, making this decline significant.
Arnold explained that Auckland homeowners are hesitant to put their homes on the rental market as they wait for clearer signs on interest rates. This reluctance, coupled with tenants moving overseas, is contributing to the easing of rental growth in the region. Both factors suggest that the Auckland rental market is slowing, with more stock available than tenants seeking homes.
As New Zealand continues to experience migration losses and homeowners consider their options, the Auckland rental market may continue to see these trends evolve, leading to a more balanced or even tenant-friendly environment.
SOURCE: RNZ