Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Yes, the analysis of Auckland's property market is included in our pack
This article breaks down what rental yields actually look like in Auckland right now, from gross and net numbers to the neighborhoods where investors are finding the best returns.
We update this blog post regularly so you always have the freshest data on Auckland's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Auckland.
Insights
- Auckland's average gross rental yield sits around 3.8% in early 2026, which is lower than many international cities but consistent with New Zealand's capital-growth-focused property culture.
- The yield gap between Auckland suburbs is massive: Drury delivers around 5.25% gross while Glendowie sits near 2%, meaning location choice can more than double your return.
- Net yields in Auckland typically drop to about 2.3% after accounting for council rates (around NZ$4,070 per year), insurance, maintenance, and property management fees.
- Apartments in Auckland generally out-yield standalone houses, but body corporate fees and special levies can quickly eat into that advantage.
- Auckland's vacancy rate hovers around 2.5% in early 2026, which is neither ultra-tight nor concerning, reflecting a market that has shifted slightly in favor of tenants.
- South Auckland growth corridors like Drury, Papakura, and Clendon Park consistently rank among the highest-yield suburbs because property prices remain more affordable while rents stay strong.
- The City Rail Link opening in 2026 could lift rents near stations like Karangahape Road and Mount Eden, creating localized yield boosts for investors who bought early.
- Property management in Auckland typically costs 7% to 12% of weekly rent, plus letting fees, which can shave a full percentage point off your net yield if you use full-service management.
What are the rental yields in Auckland as of 2026?
What's the average gross rental yield in Auckland as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Auckland sits at around 3.8%.
Most Auckland investors will realistically land somewhere between 3.3% and 4.5% gross yield, depending on the property they buy and where it's located.
This Auckland average is roughly in line with the national gross yield benchmark of around 3.8%, which means Auckland performs about the same as New Zealand overall rather than being an outlier.
The biggest factor pushing Auckland yields down is the city's high property prices relative to rents, since buyers pay a premium for long-term capital growth rather than immediate cashflow.
What's the average net rental yield in Auckland as of 2026?
As of early 2026, the average net rental yield in Auckland is around 2.3% after subtracting all the typical landlord costs.
That means Auckland landlords typically lose about 1.5 percentage points between gross and net yield, which is a significant gap driven by the city's relatively high operating costs.
Council rates are often the single biggest recurring expense that drags gross yield down to net yield in Auckland, with the average residential property paying around NZ$4,070 per year in 2025/26.
Most Auckland investment properties deliver a net yield somewhere between 1.8% and 2.9%, and the wide range reflects how much costs vary depending on property age, location, and whether you use a property manager.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Auckland.
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Auckland in 2026?
In Auckland in 2026, a gross rental yield of around 4.5% or higher is generally considered good by local investors, since it meaningfully beats the citywide average of 3.8%.
Properties hitting 5% gross or above are usually seen as high-performing in Auckland, though they often come with trade-offs like less prestigious locations or older buildings that need more maintenance.
How much do yields vary by neighborhood in Auckland as of 2026?
As of early 2026, Auckland gross rental yields range from roughly 2% in premium suburbs to over 5% in affordable growth areas, which is a huge spread for a single city.
The highest-yield neighborhoods in Auckland tend to be affordable South and West Auckland areas like Drury, Clendon Park, Otahuhu, Papakura, and Henderson, where lower purchase prices keep yields strong even with moderate rents.
The lowest-yield neighborhoods are typically the prestige eastern suburbs and isthmus areas like Glendowie, Remuera, Epsom, Grey Lynn, and Devonport, where wealthy owner-occupiers push property prices far above what rents can justify.
The main reason yields vary so much across Auckland neighborhoods is simply that property prices differ dramatically while weekly rents stay within a narrower band, so expensive suburbs mathematically produce lower yields.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Auckland.
How much do yields vary by property type in Auckland as of 2026?
As of early 2026, gross rental yields in Auckland range from around 3% for standalone houses in premium areas to 4.5% or higher for well-located apartments, with townhouses falling somewhere in between.
Apartments in Auckland currently deliver the highest average gross rental yields because they have lower purchase prices per unit while still commanding solid weekly rents, especially near the CBD and transport hubs.
Standalone houses in Auckland typically deliver the lowest gross yields, particularly in desirable school zones and established suburbs where owner-occupier demand inflates prices beyond what rental income can support.
The key reason yields differ between property types in Auckland is that apartments trade at lower price points relative to their rental income, while houses carry a "land value premium" that renters don't pay extra for.
By the way, you might want to read the following:
What's the typical vacancy rate in Auckland as of 2026?
As of early 2026, the average residential vacancy rate in Auckland sits at around 2.5%, which means most rental properties stay occupied for the vast majority of the year.
Across different Auckland neighborhoods, vacancy rates typically range from around 2% in high-demand areas near the CBD to about 3.5% in outer suburbs with more rental supply.
The main factor driving Auckland vacancy rates in early 2026 is the balance between new rental supply coming onto the market and population growth, with conditions currently tilting slightly in favor of tenants after several tight years.
Auckland's vacancy rate is broadly similar to the national average, reflecting a market that has softened from its peak tightness but remains healthy for landlords who price their properties correctly.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Auckland.
What's the rent-to-price ratio in Auckland as of 2026?
As of early 2026, the average rent-to-price ratio in Auckland (annual rent divided by purchase price) is around 3.8%, which is essentially the same number as the gross rental yield.
A rent-to-price ratio above 4.5% is generally considered favorable for buy-to-let investors in Auckland, and this figure directly translates to gross yield since they measure the same relationship between rent and property value.
Auckland's rent-to-price ratio is lower than many comparable international cities, reflecting New Zealand's property culture where investors prioritize long-term capital appreciation over immediate rental returns.
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Auckland give the best yields as of 2026?
Where are the highest-yield areas in Auckland as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Auckland are Drury, Clendon Park, and Otahuhu, all located in South Auckland where property prices remain more accessible.
In these top-performing South Auckland areas, investors can expect gross rental yields ranging from around 4.7% to 5.3%, which is significantly above the citywide average of 3.8%.
The main characteristic these high-yield Auckland suburbs share is affordability: Drury, Clendon Park, and Otahuhu all have lower median property prices while still attracting steady renter demand from working families and commuters.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Auckland.
Where are the lowest-yield areas in Auckland as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Auckland are Glendowie, Devonport, and Grey Lynn, all premium suburbs where property prices far outstrip rental returns.
In these low-yield Auckland areas, gross rental yields typically range from just 2% to 2.4%, which is nearly half the citywide average.
The main reason yields are so compressed in Glendowie, Devonport, and Grey Lynn is intense owner-occupier demand: wealthy buyers compete for lifestyle and school-zone benefits, pushing prices to levels that rental income simply cannot match.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Auckland.
Which areas have the lowest vacancy in Auckland as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Auckland include Mount Eden, Kingsland, and Epsom, where strong structural demand keeps properties consistently occupied.
In these low-vacancy Auckland areas, vacancy rates typically sit around 1.5% to 2%, meaning landlords rarely face extended gaps between tenants.
The main demand driver keeping vacancy low in Mount Eden, Kingsland, and Epsom is their combination of excellent transport links (especially rail access) and proximity to top schools, which creates resilient tenant demand year-round.
The trade-off investors face when targeting these low-vacancy Auckland suburbs is that the same factors driving strong occupancy also push property prices up, resulting in lower gross yields despite the reduced vacancy risk.
Which areas have the most renter demand in Auckland right now?
The three Auckland neighborhoods currently experiencing the strongest renter demand are Auckland Central (CBD), Mount Eden, and the Howick/Pakuranga corridor, each attracting different but substantial tenant pools.
In these high-demand areas, the typical renter profile varies: young professionals and students dominate the CBD and Mount Eden, while families seeking space and good schools drive demand in Howick and Pakuranga.
Rental listings in these high-demand Auckland neighborhoods typically get filled within one to two weeks of being advertised, and well-priced properties in good condition often receive multiple applications within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Auckland.
Which upcoming projects could boost rents and rental yields in Auckland as of 2026?
As of early 2026, the top three projects expected to boost Auckland rents are the City Rail Link opening, the Drury Metropolitan Centre development, and ongoing intensification around transport corridors across the city.
The neighborhoods most likely to benefit from these projects include Karangahape Road and Mount Eden (near new CRL stations), plus Drury and Papakura in South Auckland where major growth is approved and underway.
Once these projects are completed, investors might realistically expect rent increases of around 5% to 10% above normal market growth in directly affected areas, though the full impact often takes a few years to materialize after opening.
You'll find our latest property market analysis about Auckland here.
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What property type should I buy for renting in Auckland as of 2026?
Between studios and larger units in Auckland, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedrooms tend to deliver higher gross rental yields in Auckland, but larger two to three bedroom properties offer more stable occupancy and lower turnover.
Studios in Auckland typically achieve gross yields around 4% to 4.5% (roughly NZ$400 to NZ$450 per week rent, or approximately US$240/€220), while larger 3-bedroom homes yield closer to 3.5% to 4% (around NZ$650 to NZ$750 per week, or approximately US$390 to US$450/€360 to €415).
The main factor explaining this difference is that studios have lower purchase prices while rents don't fall proportionally, which mathematically produces higher yields even though weekly income is lower in absolute terms.
However, larger units can be the better investment choice in Auckland when targeting families or professional flatmates, who tend to stay longer and maintain properties better than the transient young professionals and students who typically rent studios.
What property types are in most demand in Auckland as of 2026?
As of early 2026, the most in-demand property type in Auckland is the two-bedroom apartment or townhouse, which hits the sweet spot between affordability and livability for the largest pool of renters.
The top three property types ranked by current tenant demand in Auckland are: two-bedroom apartments/townhouses (couples and flatmates), three-bedroom houses (families), and well-located one-bedroom apartments (young professionals).
The primary trend driving this demand pattern in Auckland is the combination of high housing costs pushing more people into renting for longer, plus a growing preference for locations near public transport and employment hubs over car-dependent suburbs.
Older standalone houses on large sections in outer suburbs are currently underperforming in rental demand and likely to remain so, as tenants increasingly prioritize location and transport access over yard space.
What unit size has the best yield per m² in Auckland as of 2026?
As of early 2026, units in the 50 to 80 square meter range (typically one to two bedrooms) deliver the best gross rental yield per square meter in Auckland.
For this optimal unit size in Auckland, gross rental yields typically range from NZ$12 to NZ$16 per square meter per week (approximately US$7 to US$10/€6.50 to €9), which outperforms both smaller and larger properties on a per-meter basis.
The main reason smaller studios have lower yield per square meter despite higher overall yields is their higher price per square meter at purchase, while larger houses suffer because tenants won't pay proportionally more rent just for extra floor area they may not need.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Auckland.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Auckland as of 2026?
What are typical property taxes and recurring local fees in Auckland as of 2026?
As of early 2026, the annual property tax (council rates) for a typical rental property in Auckland is around NZ$4,070 (approximately US$2,440/€2,250), though this varies significantly based on your property's capital value and location.
Beyond council rates, Auckland landlords should also budget for water rates if not separately metered (often NZ$500 to NZ$1,000 per year, or US$300 to US$600/€280 to €550), plus body corporate fees for apartments and townhouses which can range from NZ$3,000 to NZ$8,000 annually (US$1,800 to US$4,800/€1,660 to €4,420).
These taxes and recurring fees typically represent around 8% to 15% of gross rental income in Auckland, making them one of the biggest factors that reduce gross yield to net yield.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Auckland.
What insurance, maintenance, and annual repair costs should landlords budget in Auckland right now?
The estimated annual landlord insurance cost for a typical rental property in Auckland ranges from NZ$1,500 to NZ$3,000 (approximately US$900 to US$1,800/€830 to €1,660), depending on the property type, age, and coverage level.
For maintenance and repairs, Auckland landlords should budget at least 1% of the property's value annually, which works out to around NZ$8,000 to NZ$12,000 per year (US$4,800 to US$7,200/€4,420 to €6,640) for a typical investment property.
The type of repair expense that most commonly catches Auckland landlords off guard is weathertightness remediation on homes built between the mid-1990s and early 2000s, which can cost tens of thousands of dollars and isn't always apparent during purchase inspections.
In total, Auckland landlords should realistically budget NZ$10,000 to NZ$15,000 per year (approximately US$6,000 to US$9,000/€5,530 to €8,300) for the combined cost of insurance, maintenance, and repairs on an average rental property.
Which utilities do landlords typically pay, and what do they cost in Auckland right now?
In Auckland, tenants typically pay for electricity, gas (if applicable), and internet, while landlords are often responsible for water rates in properties without separate meters and any shared-area utilities embedded in body corporate levies for apartments.
For landlord-paid utilities in a typical Auckland rental unit, you should budget around NZ$50 to NZ$150 per month (approximately US$30 to US$90/€28 to €83), though this is often zero for standalone houses where water is separately metered and billed directly to tenants.
What does full-service property management cost, including leasing, in Auckland as of 2026?
As of early 2026, full-service property management in Auckland typically costs between 7% and 12% of weekly rent (plus GST), which translates to around NZ$50 to NZ$90 per week (approximately US$30 to US$55/€28 to €50) on a property renting for NZ$700 per week.
On top of ongoing management fees, Auckland property managers typically charge a letting or tenant-placement fee equivalent to one to two weeks' rent (NZ$700 to NZ$1,400, or approximately US$420 to US$840/€390 to €775) each time they find a new tenant.
What's a realistic vacancy buffer in Auckland as of 2026?
As of early 2026, Auckland landlords should set aside around 3% to 5% of annual rental income as a vacancy buffer, which accounts for both empty periods and the friction costs of finding new tenants.
In practical terms, this means Auckland landlords typically experience around one to three vacant weeks per year, though well-located properties in high-demand areas may see almost no vacancy while outer suburbs might experience longer gaps.
Buying real estate in Auckland can be risky
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Auckland, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Tenancy Services (MBIE) - Rental Bond Data | This is a New Zealand government dataset built from actual bonds lodged for real tenancies across the country. | We used it to anchor what renters actually paid in Auckland. We also used it as a backbone for rent level and rent-change context in early 2026. |
| Tenancy Services (MBIE) - Market Rent Tool | This is an official, regularly updated rent reference based on bond lodgements across New Zealand. | We used it to cross-check suburb-level and property-type rent levels in Auckland. We treat it as the cleanest public benchmark for Auckland rents. |
| New Zealand Govt (MBIE) - Market Rent API | This is the official API endpoint for the same bond-derived rent statistics used by government agencies. | We used it to validate that the rent dataset is systematic and can be queried by place and unit type. We used it to justify suburb and size splits when discussing micro-areas. |
| Barfoot & Thompson - Auckland Suburb Report (Dec 2025) | This comes from Auckland's largest real estate agency and publishes transparent rent, price, and yield tables with methodology notes. | We used it to quantify neighborhood-to-neighborhood yield dispersion using the same calculation across suburbs. We also used it to name real Auckland suburbs for high-yield and low-yield examples. |
| Barfoot & Thompson - Rental Report (Dec 2025) | This is a large, transaction-based dataset from a major Auckland property manager rather than a small survey. | We used it to anchor typical weekly rents by Auckland sub-area and bedroom count as of end-2025. We also used it to infer where renter demand was strongest. |
| REINZ - Property Reports Hub | This is the national real estate institute and a standard reference for New Zealand sale prices and volumes. | We used it to triangulate Auckland price levels with an independent national benchmark. We treat it as a check against Barfoot's Auckland-only lens. |
| Cotality (CoreLogic NZ) - Press Release on Rental Market | This is a major property data provider that cites official MBIE rent data plus its own market measures. | We used it to anchor the macro direction of Auckland rents heading into 2026. We also used its national gross-yield reference as a cross-check for our Auckland estimate. |
| Global Property Guide - NZ Rental Yields | This is a long-running international dataset that publishes comparable yield calculations by city worldwide. | We used it as an outside view benchmark for what Auckland yields typically look like in global datasets. We only used it to triangulate, not as our single source of truth. |
| Stats NZ - Housing Topic Portal | This is New Zealand's official statistics agency for housing and related data series. | We used it to ground the article in official definitions and housing data context. We used it mainly to confirm our story is consistent with official housing trends. |
| Auckland Council (OurAuckland) - Rates Explainer (2025/26) | This is an Auckland Council publication with the average residential property rates figure for the financial year. | We used it to estimate one of the biggest recurring costs that turns gross yield into net yield. We treat it as the default rates assumption unless a reader knows their specific bill. |
| Insurance Council of New Zealand - Market Data | This is the industry body publishing consolidated premium and claims statistics for New Zealand insurance markets. | We used it to justify that insurance is a structurally meaningful and rising landlord cost in New Zealand. We used it as a credibility anchor when discussing budgeting ranges. |
| Trade Me - Property Management Fees (NZ) | This is New Zealand's largest marketplace and publishes practical fee ranges used by consumers. | We used it to triangulate typical fee ranges alongside industry commentary. We applied these ranges to Auckland rents to estimate net yield impact. |
| Infometrics - Auckland Residential Rents | This is a respected New Zealand economics consultancy that republishes and derives series in a consistent framework. | We used it to cross-check whether Auckland rent growth was running hot or cooling into late 2025. We used it as a macro consistency check against MBIE and Barfoot. |
| Auckland Transport - CRL New Network in 2026 | This is the official transport agency describing the City Rail Link opening window and network impacts. | We used it to identify place-specific catalysts that can shift renter demand near stations in 2026. We used it when discussing projects that could boost rents. |
| City Rail Link Ltd - Official CRL Site | This is the project's official source for status and handover context for Auckland's biggest transport investment. | We used it to corroborate the 2026 opening framing from a second official source. We used it to keep the project impact section accurate as of January 2026. |
| NZ Govt - Fast-track Approvals (Drury Metropolitan Centre) | This is the government register for a major approved Auckland growth project with official approval documentation. | We used it to ground Drury's pipeline in an official approval record rather than hype. We used it to explain why some South Auckland areas can see rent pressure as development rolls out. |
| Auckland Property Investors Association / Cotality | This combines local investor association insights with Cotality's property analytics for Auckland-specific yield analysis. | We used it to understand property-type yield patterns, particularly how apartments compare to houses. We used it to validate that apartments typically out-yield houses in Auckland. |
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