Where is the apartment demand in Auckland

Auckland’s housing is intensifying. Census and CBRE data shows that apartments as a proportion of total housing stock increased from 2.1% in 2001, to 7.7% in 2023. Current apartment stock of 48,924 units is expected to surpass 50,000 in mid-2026 based on the projected completion dates of pipeline projects. With increasing development capacity on the horizon, and qualitative research showing unmet demand, it is important for developers to know where buyer demand can be sourced from. 

CBRE’s methodology for measuring apartment demand is a statistical model based on a highly detailed Census 2023 dataset of households. It combines;

1. The desire to live in an apartment (this varies depending on the demographic profile of the household)
2. The ability to pay for it (this varies depending on the socioeconomic profile of the household)
3. The willingness to do so (this relates to alternatives available in the market)

The second and third parts of the equation consider price. This is an important consideration because demand varies by price point. At increasing prices, ‘ability’ based on wealth and income wanes, and ‘willingness’ declines because other options in the housing market become more competitive. For the purposes of this research brief, we have analysed apartment demand at a range of price points between $600k and $1.6m.