26 Aug 2026
New State of the City report finds growing strength in innovation, international events and Auckland’s role connecting New Zealand to the world, but calls for more concerted action on productivity, talent retention, housing and access to opportunity.
Tāmaki Makaurau Auckland’s underlying performance is improving, but progress is uneven according to the Committee for Auckland’s latest State of the City report.
Committee for Auckland director Mark Thomas says the city is not yet turning its advantages into stronger productivity, more high-value jobs and widely shared opportunity.
“Auckland has strong international connections, growing innovation momentum and an exceptional natural asset base. But it needs to turn those strengths into more visitor spending, new business investment, and a lower-emissions city. Auckland is very good at attracting international students but needs to do more to help them move into the skilled roles our growth sectors need.”
Thomas says the City Rail Link and the Auckland Deal create a rare opportunity to turn Auckland’s momentum into more investment, better jobs and more widely shared prosperity.
“Despite recent gains in housing supply and relative affordability, housing remains unaffordable for many Auckland households. Too many Aucklanders still cannot easily reach the places where higher-value jobs are concentrated because of public transport gaps and ongoing congestion.
“The city centre is one of Auckland’s greatest economic and cultural assets. It generates more than 20 per cent of regional GDP and contains close to 160,000 jobs. We need to make it more active, investable and accessible so its benefits reach more Aucklanders.”
Unlike the previous three annual State of the City reports, which benchmarked Auckland against international peers, this year’s report takes a deeper look at five areas where Auckland has important strengths, significant challenges and a need for concentrated action.
Auckland’s success matters beyond Auckland
Auckland plays an essential role as New Zealand's one true global city and the gateway to the rest of the national economy. The report says Auckland's gateway credentials are strengthening, with conventions and meetings the biggest riser of the year and port efficiency is improving, while increasing investor confidence and retaining growth companies remain the key challenges.
“When Auckland attracts investment, talent, visitors and trade, the benefits don't stop at the city's boundaries. Auckland’s success matters because when we turn those advantages into stronger economic and commercial outcomes, the whole country benefits,” says Deloitte New Zealand Chief Executive Mike Horne.
Auckland accounts for 73% of New Zealand’s international passenger movements, hosts about 55% of the country’s international students and is headquarters for more than 60% of leading New Zealand companies and a rising share of internationally investable businesses.
Conversion gap
Despite this, Auckland captures only 29% of national visitor spending, investor sentiment trails the city’s fundamentals, promising businesses frequently move offshore as they scale, and the city is not yet attracting and retaining skilled talent as effectively as comparable international cities.
Horne says the report shows Auckland has significant strengths but isn’t always converting those strengths into results.
“Visitors arrive but don't always stay long enough, investment comes but doesn't always turn into long-term growth, and talented people come to Auckland but don’t always make it their home.
“The good news is the report also shows us where the opportunities are, so if we can harness the city’s broader strengths, we have a real chance to accelerate growth. The opportunity now is to close the gap between what Auckland is capable of and what it delivers.”
Encouraging innovation momentum
The State of the City report finds Auckland’s innovation economy gaining international ground, with stronger high-growth companies and growing strengths in health, digital, fintech and clean energy.
University of Auckland Deputy Vice-Chancellor Research and Innovation Professor Frank Bloomfield says the report states some of the clearest signs of progress are in innovation, where Auckland has emerged as one of the world's fastest-improving innovation ecosystems, producing more high-growth firms and university spinouts in technology, clean energy, health and emerging industries.
About 50 percent of the companies featured in Auckland Council’s 100 Days of Start-ups campaign have a connection to the University of Auckland, demonstrating the important role universities play in developing talent, fostering excellence in research and identifying research that has opportunities for commercialisation.
However, the report notes Auckland still faces a ‘conversion gap’, requiring more investment, particularly in late-stage and scale-up opportunities, and the ability to attract and retain skilled talent.
“It’s encouraging to see Auckland gaining momentum as an innovation city,” says Professor Bloomfield. “We’re seeing good progress in research, entrepreneurship and collaboration, helping create new companies, attract investment and generate high-skilled jobs.
“The challenge now is turning that momentum into stronger economic outcomes. We need more businesses to scale here in Auckland. That requires greater access to capital and stronger connections between researchers, industry and investors so Auckland can create more opportunities for people and we can grow the city’s productivity.”
Auckland Mayor Wayne Brown says “Auckland’s 11-place jump in global startup rankings proves our ecosystem is thriving, with local tech leaders making waves in health, digital, fintech, and clean energy. Through new infrastructure and key initiatives like the Auckland Tech Alliance and NZIAT at GridAKL, we are building a green, connected global city that links Aucklanders to high-value jobs and global capital.
“We’ve got a beautiful harbour, boats and marina, stunning beaches, the best lifestyle, and sports; the Blues, the Warriors and Auckland FC.
“To sustain this momentum, we must tackle the productivity drag caused by congestion and sprawl. We need stronger public-private alignment, which can be done through the Auckland Deal and the Tech Alliance. We need local economic tools like a tourism levy, and a central government with the appetite to really get behind Auckland.”
World class natural advantages
The report says Auckland's natural advantages are world-class, but more needs to be made of them. “Few cities in the world can match Auckland's combination of harbours, beaches, forests, volcanic landscapes and access to nature. Auckland should see nature as a competitive advantage that supports tourism, talent attraction, wellbeing and resilience. While Auckland's natural landscapes are exceptional, the city is not yet as strongly associated with sustainability internationally as cities such as Vancouver or Copenhagen.”
Auckland enters moment of opportunity
Minister for Auckland Simon Watts says Auckland is New Zealand's economic engine and gateway to the world, and when Auckland succeeds, New Zealand succeeds.
"Auckland has all the ingredients to be one of the world's great small global cities. It's a hub for trade, investment, talent and innovation, and its success is critical to lifting economic growth and creating opportunities for New Zealanders.
"Our Government is backing Auckland's future through the Auckland Deal, a new partnership with Auckland Council focused on unlocking growth, improving infrastructure and ensuring the city can reach its full potential.
"Major investments such as the City Rail Link, alongside growing housing supply, better transport connections and targeted infrastructure investment, are creating a more productive city, attracting new investment, supporting higher-value jobs and giving Aucklanders greater opportunity to succeed.
“Our ambition is to make Auckland the best place in the Southern Hemisphere to live, work, invest and raise a family. By backing growth and investing in infrastructure, we can unlock Auckland's potential and create more opportunities for Aucklanders and businesses. That's good for Auckland, and it's good for every New Zealander.”
Make Auckland’s story part of the core infrastructure
The report is hot on the need for Auckland to tell the world, and its own citizens, about Auckland’s strengths and opportunities.
Mark Thomas says “Auckland holds a range of advantages only a few cities can match. But it needs to tell a clearer and more confident account of what the city stands for, where it is heading and why that matters.
“Cities facing a gap between their performance and their reputation make a deliberate effort to communicate their assets, establish a shared sense of direction and build confidence in their future. Unless Auckland does the same, it risks missing out on investment, talent, visitors and other opportunities.
“What increasingly separates otherwise similar cities is the story they tell about themselves. A clear and confident narrative helps a city win attention, align leaders and investors behind shared priorities, and turn real progress into a stronger reputation.”
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