The pace of rent rises across Auckland has slowed, according to the latest data insights from Barfoot & Thompson.
The cost of renting a typical three-bedroom home in Auckland rose 3.9 per cent, or by $20.77, year on year during January to March 2018, the lowest rate recorded in two years.
This compares to a year-on-year increase of between 4.2 per cent and 4.3 per cent during each quarter of 2017, and increases closer to 5 per cent recorded during 2016.
"While in real terms this means the average rent for a three-bedroom home has gone up a couple of dollars less than it has in the past, it is a notable turning point after the peaks of 2016 and a very steady 2017," said Director Kiri Barfoot.
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The Auckland regions which saw the sharpest increase in average rental prices between 2017 and 2018 were the Central Suburbs and West Auckland, which both saw lifts of 5.7 per cent.
The real estate firm, which manages nearly 16,000 properties across the Auckland region, performs rental reviews with landlords annually, but Barfoot said it was ultimately the landlord's decision to raise the rent.
"Despite rising operating and compliance costs, these figures indicate that landlords are choosing not to raise rents by as much as they may have in the past," she said.
"What remains to be seen is how other pending regulatory changes may affect landlords' costs, and how they will accommodate these."
While the figures have moderated in the latest statistics, the pace of growth is still substantially higher than New Zealand's average wage growth.
Statistics released earlier this month showed that private sector wage inflation rose 0.3 per cent in the quarter for a 1.9 per cent annual increase.
Public sector wage inflation was up 0.3 per cent in the quarter for a 1.5 per cent annual gain, and across both sectors, wage inflation rose a quarterly 0.3 per cent and an annual 1.8 per cent.
