Rental demand continues to outpace supply

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

The number of rental houses available in Gisborne is not keeping up with “skyrocketing” demand and is resulting in higher rent, new data shows.

Trade Me property sales director Gavin Lloyd says New Zealand rental prices have recorded an all-time high, according to Trade Me’s latest Rental Price Index, while Tairāwhiti is one of two regions experiencing increased demand for rentals.

“Gisborne and Marlborough stood out as the only two places that experienced an increase in demand.

“Marlborough experienced a significant surge in demand in December, skyrocketing by 61 percent compared to the previous year, while Gisborne saw a 42 percent increase.

“Given both regions boast ample sunshine hours, it comes as no surprise that Kiwis are eager to soak up the warmth during the sunnier months.

“While there was a notable 21 percent increase in available listings in Gisborne, the demand still outpaces the supply, making it a bit challenging for renters to secure a place with so many eager to be there.”

Ministry of Business, Innovation and Employment data shows the region’s median weekly rent was $575 at the end of November — $45 more than than the same time the previous year.

For the past five years, Manaaki Tairāwhiti and research group Sense Partners have been working with stakeholders to write a housing strategy to address a developing housing crisis in Gisborne.

Manaaki Tairāwhiti strategic adviser Judy Campbell says rents are rising because of scarcity of resources but points out it is working with iwi while Kāinga Ora building new houses helps with rent stability.

“Despite growing building activity there remains an acute shortage of rental properties.

“The number of rentals is down almost 20 percent on the peak in May 2016.”

Manaaki Tairāwhiti’s latest housing stocktake report, released last month, shows the lack of rentals is also driving people to seek social housing solutions.

At the end of July 2023, 606 whānau were on the social housing wait list, equalling the peak in June 2022, the report said.