Pressure on to find rentals
A shocking shortage of available rental properties in Invercargill has resulted in rent prices being ramped up and people seeking out emergency shelter.
Trade Me property figures reveal median rental prices in Southland have risen by eight per cent in the past year, from $250 a week to $270, but the province still lags behind many other regions when it comes to renting a home.
Invercargill rental managers spoken to yesterday confirmed prices had gone up and laid the blame on the shortage of properties.
‘‘Definitely rents have increased,’’ Pride Property Management Invercargill manager Jackie Alexander said.
‘‘It’s because of a shortage of rental properties.’’
‘‘We have a portfolio of 400 rental properties and we have got two to rent ... that shows you what the demand is.’’
People were ringing her office every day looking for properties to rent, she said.
‘‘It’s so sad. We turn away so many people that we can’t help and it’s horrible. It’s a sad situation and I can’t see it getting any better.’’
Each property which became available attracted about 50 applicants, she said.
‘‘It’s very bad, it’s shocking, there’s not enough houses to go around so that’s why they are seeing the [rent] increases.’’
The shortage of properties was down to several factors, including investors cashing in their rental properties to young people buying their first homes with KiwiSaver money.
The number of rentals available in Invercargill had decreased ‘‘quite significantly’’ in the last 18 months.
More houses needed to be built in Invercargill, she said.
‘‘If you brought me 10 new builds today I would have them rented by the end of the week and you would be looking at $350 a week.’’
New stipulations on homeowners, including that they insulate their homes, was also putting off some rental investors.
‘‘I agree no-one should have to live in a damp cold house but some owners don’t have the finances, so it scares them off.’’
Invercargill Salvation Army community ministries coordinator Brenda King said their emergency housing was full, as people were unable to find rentals in the city.
The Salvation Army was turn- ing people away daily.
When the Salvation Army took people in, it aimed to find them housing and move them on.
‘‘But we are having difficulty doing that, it’s a big problem ... rentals are scarce and they are too high for a lot of people.’’
Trade Me Property boss Nigel Jeffries said the Southland rental market had been in a catch up phase recently.
The number of rental listings in Southland was down 15 per cent year-on-year, which had led to a $20 jump in median weekly rent.
However, Southland rents were still comparatively cheap when compared to the rest of the country, ‘‘which means we could continue to see rising rental prices over the next few months’’.
Southland Regional Development Strategy [SoRDS] programme director Sarah Hannan said economic growth would support the region’s ability to fund the appropriate level of infrastructure, housing and services.
‘‘Increasing Southland’s population is key to achieving this economic growth.’’
Southland’s population ageing and shrinking in portion to New Zealand’s population, she said.
Harcourts Invercargill manager Wayne Ellis also said a shortage of rental stock had pushed prices up.
‘‘We haven’t seen this shortage for quite some time . . . it makes it challenging to find suitable homes for those that want to rent.’’
Southland’s eight per cent rental price increase in the last was prototal year is nearly double the national median rent rise of 4.4 per cent.
The national median rent price is at an all time high of $470 per week.
The median rent price in Northland rose to $385 in the last year and to $380 in the Bay of Plenty.