Renter wants to avoid emergency housing

Going into the typically busier summer months, if

supply can’t keep up with demand we

may see a new record high rent . . . Gavin Lloyd

Trade Me

advised higher immigrant numbers could be expected, which would bring more demand into a residential sector that was “already struggling to cope”.

“Building houses and increasing the housing pool is one step, however enticing investors to have the confidence to buy residential rental properties would release properties into our portfolio at a time that it urgently needed, now.”

Rotorua Property Investors Association president Sally Copeland said anecdotal evidence suggested rent prices had been “static” for the last quarter.

“As we start to see more tourists visit our region, some property owners will be considering switching to short-term rent opportunities.

“With motels being used for emergency housing, the need for tourist accommodation can be filled with the likes of Airbnb.”

However, the downside could then be the reduction of long-term accommodation, increasing demand and therefore increasing rents, she said.

Trade Me property sales director Gavin Lloyd said its figures showed rental supply in the Rotorua District increased by six per cent year-onyear, while demand fell by five per cent.

“Going into the typically busier summer months, if supply can’t keep up with demand we may see a new record high rent in these districts.”

Rents have risen during the past two summers in Rotorua.

In January, the Rotorua Daily Post reported the city’s median weekly rent price was $480. By April, it was $500 and June $550.

In December 2020, the median weekly rental price in Rotorua was $460 and by May 2021, it was $490.

Nationally, the median weekly rent climbed back up to $580 in October — matching the all-time high first recorded in April.

It was up 4 per cent — or $20 — on the same time last year, the smallest year-on-year percentage jump in more than 18 months.