#1 – Auckland
Undervalued by 9.48%
Yield: 3.1%
Population growth: Strong +33% projected for the next 25 years
Auckland doesn’t feel particularly popular right now. And Auckland house prices have under-performed over the last decade or two.
They haven’t increased as fast as other areas (based on a compounding basis).
Part of that is because Auckland was so hard hit during the most recent property market downturn.
But, that’s also why it’s #1 on my list.
Auckland house prices look about 9.48% undervalued relative to where I’d expect them to be at this point in the cycle.
This suggests the market is currently undervalued and could present a buying opportunity.
Houses still aren’t cheap, but Auckland is no longer “way more expensive” than everywhere else.
Auckland also has strong fundamentals:
- higher incomes than the rest of the country,
- lots of people who need rentals, and
- strong buyer demand.
Sure, rental returns are lower than in smaller centres (the median yield is still around 3.1%).
But if you take a long enough view, investors have historically received higher house price growth than the rest of the country.
Since January 1992, Auckland house prices have increased by 6.5% per year on average, compared to 5.9% across New Zealand excluding Auckland. (REINZ, February 2026.)
Auckland also looks like it’s in a similar part of the cycle to 1993 and 2009, and both were followed by long periods of growth.
The other big reason Auckland stands out is population growth.
According to Stats NZ population projections, Auckland’s population is forecast to grow by 33.46% between 2023 and 2048.
Put all these points together, and that’s why it’s one of the most compelling places to watch right now.
