A Fluid Housing Market

For the past three years we have been concerned at the reduced availability of homes for rent in Kapiti. The market appears to be absorbing population growth as Kapiti becomes more popular as a place to live. There has been a sell-down by some investors, and when a rental property is sold to an owner-occupier there is one fewer in the rental pool.

Strains on the Housing Pool

Over the past couple of years several changes have occurred in the housing market. The demand for housing in Auckland (both owner-occupied and rental) has overflowed to other parts of New Zealand, including Wellington and Kapiti in particular. The net inflow of migrants post-Covid has put even more strain on the pool of available houses. Homeowners in Wellington can sell their properties and buy on the Kapiti Coast at more favourable prices. There is an influx of people direct to Kapiti from other places. Many have been attracted by the completion of the Kapiti Expressway and Transmission Gully construction projects. Many arrivals commute from Kapiti to work in Wellington while enjoying the coastal lifestyle at weekends.

Some rental properties have been sold to new owner-occupiers, and new arrivals in the area have accounted for increased rental demand. Increased competition for properties has supported higher rents, following the laws of supply and demand. However, a softening of rents has occurred recently, leading to more rental properties being available for the last couple of months.

Some Developments Underway

It is gratifying to see many small housing developments underway in Kapiti. The additional units will assist in satisfying some of the demand, but the ongoing shortage will persist for some time. Freeing up more land for housing will be a focus of the incoming Council, as some of the newly elected councillors have expressed an intention to address the housing shortage. We wish them success in their endeavours.