Editorial: Families need housing safety net

The median rent in Tauranga is now the third highest in the country. Photo/File

Tauranga's hot property market may be cooling but it's still tough out there for young people - whether they're renting or about to buy their first home.

On Saturday we reported that rising rents were forcing some young people to move back in with their parents.

Tauranga rents are the third highest in the country and have jumped 4.5 per cent in one year - despite property managers reporting a softening market.

Figures from the latest Trade Me Property Rental Index show the average median rent had jumped to $460 per week in March compared to $440 one year ago, and only Auckland and Wellington cost more, at $510 and $499 respectively.

Despite the cost, one rental agency says there can be up to 30 applicants for a single property, indicating demand is still strong.

While many people will be able to trim their household budgets to cover rent increases, some simply can't keep up.

Tauranga Budget Advisory Service manager Diane Bruin says wage rates have failed to keep pace with the increase in living costs.

For many families, this may mean something else has to give, such as food. Some describe their rents as "crippling", she says.

Tauranga Property Investors Association vice-president Simon Darmody says long-term investors have been increasing rents to recoup costs of increased rates, insurance, and compliance and maintenance costs.

He says rents in Tauranga were flat for many years and landlords are only now catching up.

We do live in a free market and landlords are running their investments as a business and are entitled to make a profit.

However, a safety net needs to be in place.

In my view, it is essential that more emergency accommodation is available to families who find themselves priced out of the property market.