Auckland’s economy is showing both recovery and ongoing challenges across sectors, according to the latest report by the Auckland Council Social and Economic Research and Evaluation Team.

Business confidence is on the rise, while the housing market and construction sector remain sluggish, reflecting a complex economic landscape.

Business Confidence Rising

Business optimism is one of the few bright spots.

The New Zealand Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion (QSBO) for September 2024 showed that a net 9% of Auckland businesses expect the general business climate to improve over the next three months.

This marks the highest confidence level since 2017, a significant uptick after several years of cautious outlooks.

However, despite this improvement, business sentiment remains below the highs experienced between 2012 and 2017, highlighting a mixed recovery.

Housing Market Faces Continued Pressure

In contrast, Auckland’s housing market remains under pressure.

The median house price for August 2024 was $960,000, representing a 7% decrease from the previous year and a substantial 36% decline from the market’s peak in 2021.

The number of homes sold for the year ended August 2024 was 20,822, a 14% improvement from May 2023’s trough but still 43% below the July 2021 peak.

Rents have also seen a slight decline.

The average weekly rent in Auckland dropped to $667 in July 2024, down 2% from a year ago.

This comes after years of relative stability, with many Coasties feeling the squeeze between high housing costs and stagnant wages.

Building Consents Slow Down

Auckland’s construction sector reflects similar slowdowns.

The number of new homes consented has dropped 37% from its September 2022 peak, with only 13,748 new dwellings consented for the year ended August 2024.

Although this is a slight 1% increase from July, it remains a far cry from pre-2023 levels.

Non-residential construction has also faced a dip.

The real value of new non-residential buildings consented was $2.866 billion, a decrease of 16% compared to November 2022.

However, it’s still 28% higher than the sector’s lowest point in 2020.

Imports Down but Still Higher Than Five Years Ago

Auckland’s import figures have also declined.

The real value of imports through seaports for the year ended August 2024 was $29.9 billion, a 9% drop from the previous year.

This decline reflects similar trends across the rest of New Zealand, where imports have fallen by 16%, bringing them to the same level they were at five years ago.

Despite these reductions, Auckland's import figures are still 6% higher than they were in 2019, indicating some resilience in the region’s trade.