This challenges the idea that job growth is the main factor behind Auckland’s higher average house price growth. Other factors like land availability might be more relevant. Similarly, Auckland property financing might have an impact.
Recently, Auckland’s employment growth rate of 4.3% exceeded the rest of the country’s 3.8%, which could support the notion of Auckland leading the current house price cycle. However, this shouldn’t be overemphasised, as historical patterns caution against such extrapolation. Job-providing businesses are not tied to Auckland, and other cities like Christchurch, Tauranga, and Hamilton also show strong growth.
Auckland’s unemployment rate closely matches the national rate, not surprising given that a significant portion of jobs are in the city. The CBD’s apparent employment challenges are due to remote work, but as the economy improves, the services sector’s growth could benefit Auckland.
The return of foreign tourists and students drives growth and employment in Auckland but strains housing availability.
Uncertainty stems from potential delays in multi-unit construction due to recent constraints in Auckland’s housing market over the next three years.
Source data by Tony Alexander and First Mortgage Trust.
Auckland property financing is available from Fifo Capital. We are a secondary lender and can lend on real estate that the main banks decline. Contact us to find out more.