Weekly rent on Hawke's Bay family houses between $300 and $495
Rental demand in Hawke’s Bay set to soar.Rental demand in Hawke’s Bay set to soar.
The odds of a Hawke’s Bay family getting into a new rental home could be running as high as 40-1, because property agents are being inundated with scores of people all wanting the same properties.
Official data from the Ministry of Business, Innovation and Employment shows that between July 1 and the end of last month, the median weekly rent for people posting a bond on a three-bedroom property in Hawke’s Bay ranged from $300 a week in Flaxmere to $432 a week in Havelock North.
Yet despite a housing shortage causing high rents, property agents are reporting an ever growing demand.
One rental property manger told Hawke’s Bay Today that some people had now stopped advertising on the main property internet sites because they would get “inundated” with requests to view the property.
“Last time we advertised we had about 35 to 40 people wanting to go and view the property. A lot of them were really desperate and they can get quite upset if they don’t get it – it’s really dire.”
Other property management companies said the situation had been worsening over the last few months, particularly with regards to two- and three-bedroom family homes.
Figures from property management company Oxygen showed a 20 per cent rise in median rents for three-bedroom properties in Napier, while the median rent for a two-bedroom property in Taradale was 27 per cent higher in November last year than in September 2016.
“There’s a shortage of properties for rent and as a consequence there is high demand, which flows through to not a lot of choice for people”, Oxygen general manager Christian Casbolt said.
“This has been the pattern we have seen for some months now with the overall shortage of housing, and I don’t personally see anything changing. We have seen the same in the Wellington market, which we operate in as well.”
Tremains Rentals general manager Ruth Shannon said she regularly saw double-digit crowds, sometimes of up to 40 people at rental property viewings, as demand for family homes increased over the last 12 months.
“There’s not a lot of good quality homes available, which has been the story for probably the last six to 12 months. There are still large numbers attending viewings for rentals, lots of people with pets as well to consider as well.”
Miss Shannon added that there were increasing numbers of people relocating to Hawke’s Bay that created added pressures on the local market.
“Most properties are renting too fast we don’t have a chance to put out our ‘for rent’ signage at the moment.
“Rents have increased definitely, which is good for the owners finally, after eight years of not much movement.”
While a lot of long-term investors had cashed-up and left the market with new legislation making it more expensive for “old school” landlords, long-term hard-nosed investors were still investing.
“People are getting more savvy on what they need in rental properties which is good for everybody. We want to provide comfortable places to live as well as you avoid problems down the track if you are confident you are supplying something you are confident is warm, dry and healthy to live in.”
Housing and Urban Development Minister Phil Twyford said the new coalition Government had a plan to deal with the situation, both here and nationally.
“The Coalition Government has a comprehensive plan to address the housing crisis, which is putting pressure on rental properties throughout the country, including in the Hawke’s Bay.
“Once up and running KiwiBuild will provide a much-needed supply of affordable housing. This will mean more families can buy their own home and will free up rental properties.
“We are also increasing the supply of emergency and state housing.
“In the short term, the Accommodation Supplement is available for those on low incomes and the elderly who are struggling to pay market rents.
“A bill currently before Parliament will require foreign investors to build new homes, not buy existing homes, and this will also increase the housing supply.”
The average rent for all properties in Hawke’s Bay is now $363 a week – $22-a-week higher than the year before.