The crossing on Karangahape Rd was vandalised by three people early today.
A spokesperson from Auckland Council confirmed the crossing had been painted over, although rain overnight had washed much of the white paint away, but remnants could still be seen on the crossing.
In a statement, Auckland City Central Area Commander Inspector Grant Tetzlaff said police made inquiries on Thursday afternoon and founds some items of interest.
Officers had raided a property in Flat Bush, which was linked to the owners of a vehicle involved, he said.
However, that vehicle had not yet been located.
Police wanted those responsible for the incident to come forward, he said.
"We are aware of the hurt and confusion from the community at what has occurred and we want to reassure the public we are committed to holding those involved to account," Tetzlaff said.
"Police have no tolerance for reports of this nature, which appear to directly target a particular sector of our diverse community, and we are treating this as a hate crime."
Meanwhile, Auckland Transport said they could have crews would be removing the water-based paint tonight.
Group manager of infrastructure projects Mark Banfield said they would only repaint the rainbow if they had to.
He said they would treat any repainting of the crossing with urgency, but it would take longer to organise.
Hastings District Council then cancelled its upcoming Rainbow Storytime event citing safety concerns after councillors and staff received "a large number of threatening and intimidating messages.
Contacted by RNZ, a Destiny Church spokesperson denied that the police search warrant was carried out at any of its properties. They also declined having any involvement with the rainbow crossing vandalism.
Political reaction
Meanwhile, Police Minister Mark Mitchell has expressed his frustration at the covering of the Karangahape Rd rainbow crossing in white paint.
Mitchell said he did not want police resources tied up responding to what he said was "nonsense".
"I am frustrated yes ... the last thing I want to see is police officers having to deal with that sort of nonsense so whoever is doing it should stop it."
Prime Minister Christopher Luxon earlier described the incident as unacceptable.
"I mean, we want to be embracing our rainbow community. We want everyone in New Zealand to be able to be who they want to be in this country - and I've got no time for that at all."
ACT leader David Seymour said such behaviour was not a valid expression of opinion.
Seymour said, personally, he thought the rainbow crossings looked pretty cool.
"I think they look quite cool, but that's just me ... if you've got a point to make you should try and do it in a way that makes your point at minimal cost to others. As an Auckland ratepayer I've got to say I'm pretty pissed off about it."