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
If you're considering buying property in Auckland to rent out, understanding rental yields is essential before you make any decision.
This article breaks down Auckland's current rental yields, neighborhood variations, and the costs that affect your bottom line.
We update this blog post regularly to reflect the latest market data and trends.
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 3.4% in January 2026, which is noticeably lower than many other New Zealand cities due to the region's high property prices.
- The gap between Auckland's highest-yield suburbs (around 4.8% in areas like Manurewa) and lowest-yield suburbs (around 2.5% in Herne Bay) is more than 2 percentage points.
- Council rates in Auckland average about NZ$4,069 per year, making them one of the single largest fixed costs that reduce net yields for Auckland landlords.
- Auckland's vacancy rate has risen to just under 4%, meaning landlords should budget for 3 to 4 weeks of vacancy per year rather than assuming continuous occupancy.
- Two to three bedroom homes and townhouses remain the most consistently demanded rental property types in Auckland, offering steadier tenancy than studios or CBD apartments.
- The City Rail Link opening in 2026 is expected to boost rents in walkable catchments like Karangahape Road, Mt Eden, and Kingsland as commute times improve.
- Full-service property management in Auckland typically costs 7.5% to 8.5% of rent plus GST, which adds roughly 0.3 to 0.4 percentage points to the gap between gross and net yields.
- Smaller 1 to 2 bedroom units tend to deliver better yield per square meter in Auckland, but body corporate levies can quickly erode that advantage in apartment buildings.
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 in Auckland across all residential property types is approximately 3.4%.
Most typical Auckland rental properties fall within a gross yield range of 3.2% to 3.7%, depending on the specific location and property type.
This Auckland average is lower than the broader New Zealand average, primarily because Auckland's property prices are significantly higher while rents have not increased proportionally.
The single most important factor currently influencing gross rental yields in Auckland is the city's high median property price of around NZ$1,050,000, which keeps the yield percentage compressed even when weekly rents average around NZ$693.
What's the average net rental yield in Auckland as of 2026?
As of early 2026, the average net rental yield in Auckland across all residential property types is approximately 2.2%.
The typical difference between gross and net rental yields in Auckland is around 1.0 to 1.5 percentage points, which reflects the city's substantial operating costs.
Council rates are the expense category that most significantly reduces gross yield to net yield in Auckland, averaging about NZ$4,069 per year (roughly US$2,360 or €2,240) for a standard residential property.
Most standard Auckland investment properties deliver net yields in the range of 1.8% to 2.6%, with the variation largely depending on whether you self-manage or use a property manager and how well you control maintenance costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Auckland.
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What yield is considered "good" in Auckland in 2026?
In Auckland's high-price market, a gross rental yield of 4.0% or above is generally considered good by local investors, while anything above 4.5% is viewed as very good.
The threshold that separates average-performing properties from high-performing ones in Auckland is typically around that 4.0% gross yield mark, which usually requires buying in outer suburbs or targeting smaller property formats to achieve.
How much do yields vary by neighborhood in Auckland as of 2026?
As of early 2026, the spread in gross rental yields between Auckland's highest-yield and lowest-yield neighborhoods is roughly 2.3 percentage points, ranging from about 2.5% to 4.8%.
The neighborhoods that typically deliver the highest rental yields in Auckland are outer and southern suburbs with lower entry prices relative to rents, such as Manurewa, Papakura, Otahuhu, Mangere, Henderson, and Massey.
The neighborhoods that typically deliver the lowest rental yields in Auckland are the premium inner suburbs and waterfront areas where buyers pay for lifestyle and school zones, such as Herne Bay, Ponsonby, Remuera, Epsom, and Parnell.
The main reason yields vary so much across Auckland neighborhoods is that property prices in prestige areas can be several times higher than in outer suburbs, while rents do not scale up by the same multiple.
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 across different property types in Auckland range from roughly 2.8% for standalone houses in premium areas to around 4.5% for well-located apartments and smaller units.
Apartments, especially those in CBD and city-fringe locations, currently deliver the highest average gross rental yield in Auckland due to their lower purchase prices relative to achievable rents.
Standalone houses in desirable school zones currently deliver the lowest average gross rental yield in Auckland because owner-occupier demand pushes prices well above what rental income can justify.
The key reason yields differ between property types in Auckland is that apartments offer a lower entry price point while still commanding competitive weekly rents, though body corporate levies can significantly reduce net returns.
By the way, you might want to read the following:
- What rental yields can you expect for a house in Auckland?
- What rental yields can you expect for an apartment in Auckland?
What's the typical vacancy rate in Auckland as of 2026?
As of early 2026, the average residential vacancy rate in Auckland is approximately 3.8%.
Across different Auckland neighborhoods, vacancy rates typically range from around 2% in high-demand family suburbs to 5% or more in areas with significant new apartment supply.
The main factor currently driving vacancy rates in Auckland is the increase in rental supply, particularly from new-build townhouses and apartments, which has given tenants more options and slightly extended letting times.
Auckland's vacancy rate is roughly in line with the national average, though it has risen from the very tight conditions seen in previous years when vacancies were closer to 2%.
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 is approximately 0.28% per month, which translates to about 3.4% annually.
A rent-to-price ratio of 0.33% monthly (or 4% annually) is generally considered favorable for buy-to-let investors in Auckland, and this ratio is essentially the same metric as gross rental yield expressed differently.
Auckland's rent-to-price ratio is lower than many comparable cities in Australia and significantly below affordable regional New Zealand centers, reflecting Auckland's status as the country's most expensive property market.
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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 Manurewa, Papakura, and Otahuhu, all located in South Auckland where entry prices remain relatively affordable.
In these top-performing areas like Manurewa, Papakura, and Otahuhu, investors can typically expect gross rental yields in the range of 4.2% to 4.8%.
The main characteristic these high-yield Auckland areas share is their combination of lower purchase prices, stable family renter demand, and reasonable access to employment hubs like the airport and logistics zones.
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 Herne Bay, Ponsonby, and Remuera, all premium suburbs where property prices are driven by lifestyle factors rather than rental returns.
In these low-yield areas, gross rental yields typically range from about 2.5% to 3.0%, well below the Auckland average.
The main reason yields are compressed in these Auckland areas is that buyers pay substantial premiums for prestige addresses, elite school zones, and waterfront proximity, while rents cannot justify those high purchase prices.
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 top three neighborhoods with the lowest residential vacancy rates in Auckland are Howick, Botany Downs, and Pakuranga, all family-oriented suburbs on the eastern side of the city.
In these low-vacancy areas, vacancy rates typically sit in the range of 2% to 3%, noticeably below the Auckland average of around 3.8%.
The main demand driver keeping vacancy low in these Auckland areas is the strong appeal to families seeking good schools, safe streets, and practical housing with parking and outdoor space.
The trade-off investors typically face when targeting these low-vacancy suburbs is that property prices tend to be higher, which means gross yields are often only average despite the reliable occupancy.
Which areas have the most renter demand in Auckland right now?
The top three neighborhoods currently experiencing the strongest renter demand in Auckland are Grafton, Kingsland, and Mt Eden, all city-fringe areas with excellent access to employment, universities, and amenities.
The renter profile driving most of the demand in these areas consists of young professionals, hospital workers, and university students who prioritize commute convenience and walkable neighborhoods over larger living spaces.
Rental listings in these high-demand Auckland neighborhoods typically get filled within one to two weeks, compared to three to four weeks in less sought-after areas.
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 upcoming projects expected to boost rents in Auckland are the City Rail Link opening later this year, the Drury Metro Centre development in South Auckland, and Auckland Airport's ongoing expansion program.
The neighborhoods most likely to benefit from these projects are Karangahape Road, Mt Eden, and Kingsland near the new CRL stations, as well as Drury, Papakura, and Mangere near the southern growth and airport zones.
Investors might realistically expect rent increases of 3% to 8% in affected catchments over the two to three years following project completion, depending on how significantly the infrastructure improves commute times or job access.
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, two-bedroom units tend to outperform studios in Auckland when considering both rental yield and occupancy stability together.
Studios in Auckland typically achieve gross yields of 4.0% to 4.5%, while two to three bedroom units usually deliver 3.2% to 3.8%, meaning studios win on gross yield but often lose on consistency.
The main factor explaining this difference is that two-bedroom units appeal to a broader tenant pool including couples, flatmates, and small families, which keeps vacancy lower and turnover costs down.
However, studios can be the better investment choice in Auckland when targeting locations near hospitals or universities where single professionals and students create strong, predictable demand year-round.
What property types are in most demand in Auckland as of 2026?
As of early 2026, the most in-demand property type for rentals in Auckland is the two to three bedroom standalone house or townhouse with parking and outdoor space.
The top three property types ranked by current tenant demand in Auckland are two to three bedroom houses, modern townhouses, and well-located one to two bedroom apartments.
The primary demographic trend driving this demand pattern is the growth of young families and professional couples who need flexibility for remote work and value private outdoor areas.
One property type currently underperforming in demand and likely to remain so in Auckland is the older-style CBD studio apartment, which faces competition from newer stock and changing renter preferences for more space.
What unit size has the best yield per m² in Auckland as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Auckland is typically 45 to 70 square meters, covering one to two bedroom apartments and compact townhouses.
For that optimal unit size in Auckland, the typical gross rental yield per square meter works out to roughly NZ$520 to NZ$600 annually (about US$300 to US$350 or €285 to €330).
The main reason smaller or larger units have lower yield per square meter in Auckland is that very small units sacrifice liveability premiums while very large units include space like extra hallways that tenants do not pay proportionally more for.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Auckland.
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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 council rates for a typical Auckland rental property average around NZ$4,069 (approximately US$2,360 or €2,240), though this varies based on property value and location.
Beyond council rates, Auckland landlords should budget for body corporate levies if owning an apartment, which can range from NZ$3,000 to NZ$8,000 annually (US$1,740 to US$4,640 or €1,650 to €4,400) depending on the building's age and amenities.
These taxes and fees typically represent 10% to 15% of gross rental income in Auckland, making them a significant factor in the gap between gross and net yields.
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?
Annual landlord insurance for a typical Auckland rental property costs approximately NZ$1,500 to NZ$2,500 (US$870 to US$1,450 or €825 to €1,375), depending on the property's rebuild value and coverage level.
The recommended annual maintenance and repair budget in Auckland is 0.5% to 1.0% of property value, which for a NZ$1,050,000 property means setting aside NZ$5,250 to NZ$10,500 (US$3,045 to US$6,090 or €2,890 to €5,775) each year.
The repair expense that most commonly catches Auckland landlords off guard is weathertightness issues in homes built during the 1990s and early 2000s, which can require costly remediation work.
In total, Auckland landlords should realistically budget NZ$7,000 to NZ$13,000 annually (US$4,060 to US$7,540 or €3,850 to €7,150) for the combined cost of insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Auckland right now?
In Auckland, tenants typically pay for electricity and gas directly, while water charges are nuanced because the landlord remains ultimately responsible to Watercare even when tenants reimburse usage costs.
For landlords who include utilities in the rent, such as with some furnished rentals, the estimated monthly cost is NZ$200 to NZ$400 (US$116 to US$232 or €110 to €220) depending on property size and tenant usage patterns.
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 7.5% to 8.5% of rent collected plus GST, which on a NZ$693 per week rental works out to roughly NZ$230 to NZ$280 monthly (US$133 to US$162 or €127 to €154).
On top of ongoing management fees, Auckland property managers commonly charge a leasing or tenant-placement fee equivalent to one to two weeks' rent, which adds NZ$693 to NZ$1,386 (US$402 to US$804 or €381 to €762) each time a new tenant is placed.
What's a realistic vacancy buffer in Auckland as of 2026?
As of early 2026, Auckland landlords should set aside approximately 6% to 8% of annual rental income as a vacancy buffer to account for tenant changeovers and seasonal slowdowns.
This translates to roughly 3 to 4 vacant weeks per year for most Auckland rental properties, reflecting the current vacancy rate of just under 4% plus a practical margin for letting time between tenancies.
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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 |
|---|---|---|
| REINZ | REINZ is New Zealand's national real estate industry body and publishes the most widely cited sales and price data. | We used REINZ data to anchor Auckland's median property price at around NZ$1,050,000. We then paired this with rent data to calculate gross rental yields. |
| Barfoot & Thompson Rental Reports | Barfoot manages one of Auckland's largest rental portfolios, giving them ground-level insight into achieved rents. | We used their average achieved rent figure of around NZ$693 per week as our primary rent anchor. We also relied on their time-to-let data for vacancy analysis. |
| Barfoot & Thompson Market Reports Hub | It provides consistent, repeatable suburb-level data from Auckland's largest real estate agency group. | We used it to identify neighborhood-level yield variations across Auckland. We cross-checked these patterns against other sources for accuracy. |
| Auckland Council | It's the official local government source for rates and property valuations in Auckland. | We used their published average residential rates figure of NZ$4,069 per year. We fed this into our net yield calculations as a major fixed cost. |
| Inland Revenue NZ | It's New Zealand's tax authority and defines what expenses landlords can legitimately claim. | We used their expense categories as the framework for net yield calculations. We then sized each cost using Auckland-specific price points. |
| RNZ | RNZ is New Zealand's public broadcaster and attributed the vacancy figure to a major bank economist. | We used their reported Auckland vacancy rate of just under 4% as our primary vacancy anchor. We converted this into a practical weeks-per-year buffer for landlords. |
| Tenancy Services | It's the New Zealand government's official tenancy guidance and legal interpretation resource. | We used it to clarify which utilities landlords versus tenants typically pay. We attached realistic Auckland cost ranges from other sources. |
| Watercare | Watercare is Auckland's monopoly water and wastewater provider, so their guidance is definitive for billing. | We used their FAQs to confirm that property owners remain ultimately responsible for water charges. We factored this into landlord cashflow risk assessment. |
| Electricity Authority | It's New Zealand's electricity sector regulator with transparent regional bill comparisons. | We used their dashboard to establish realistic power cost ranges for landlords who include utilities in rent. We kept estimates as ranges due to usage variability. |
| Opes Partners | It's an established New Zealand property investment research firm with transparent fee benchmarking. | We used their property management fee range of 7.5% to 8.5% plus GST as our baseline. We recommended verifying with specific Auckland agencies. |
| City Rail Link | It's the official project site for Auckland's major rail infrastructure investment. | We used it to identify which micro-areas will benefit from improved accessibility. We discussed how this can support rents in walkable station catchments. |
| Auckland Transport | It's Auckland's transport authority with detailed network and service outcome information. | We used their CRL service descriptions to translate infrastructure into renter-relevant benefits. We linked these to nearby rental demand pockets. |
| NZ Government Fast-track | It's an official government decision notice for major development approvals. | We used the Drury Metro Centre approval to support our South Auckland growth discussion. We noted how this can shift rental supply and local job access. |
| Auckland Airport | It's the airport company's official capital expenditure roadmap for a major employment zone. | We used it to support the employment engine story around the airport and Mangere area. We identified commutable suburbs that could see rental demand support. |
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