“Gisborne is like every other city in New Zealand. There’s a shortage of housing and there’s a shortage of the option of long-term stable renting. And for our members who are giving us money for 30, 40, 50 years, investing it in a long-term rental home is a fantastic investment.
“Is it likely to happen? Yes. The question is when.”
Build-to-rent’s strength is high density. They use existing infrastructure more efficiently, have lower environmental impacts, and ease the strain on public services. Designed well, they can offer residents more green space than a stand-alone house.
Rentals are key in Gisborne’s housing make-up. According to the council, almost half of Tairāwhiti’s population doesn’t earn enough to buy a house or struggles to pay rent. People with a low income can’t buy houses, but they can rent them.
The council forecasts Tairāwhiti will need nearly 5000 new homes over the next 30 years. Built-to-rent will not be the only solution but it is part of the answer.
To attract developers to build homes for our people, we can do three things:
First, to kickstart the development of build-to-rent projects, the council and Trust Tairāwhiti should actively reach out to investors and developers. We need direct communication with these developers to understand how to attract institutional investors willing to invest tens of millions in rental apartments in Gisborne.
Second, after gaining market insights, we should simplify the developer decision-making process by conducting an external study on Gisborne’s rental market, emphasising development opportunities.
Third, Trust Tairāwhiti must flex its financial muscle and invest with those developers. The trust has $540 million in equity on its books. A portion of that should be invested into build-to-rent housing. Once built and rented, those homes would earn solid returns for the trust and provide the region with modern, warm, dry homes.
A key benefit of build-to-rent is the long-term security it offers tenants with 10-year inflation-indexed leases, keeping rents affordable. This also reduces turnover costs for investors.
“It’s a win-win,” says Stubbs. “That’s why 42 percent of people in the OECD live in apartments and an awful lot of them live in long-term rental apartments.”
Finally, and perhaps most important, we must be open to new ways of living.
“I think New Zealand’s dream of a stand-alone house on the section is a very powerful motivator for a lot of people, but the times are certainly changing,” says Stubbs.
“It’s partly driven by economics because that’s an expensive option for a lot of people. It’s partly driven by lifestyle; there’s a whole bunch of people who value being able to lock up and leave — not having to mow the lawns and so on. And there’s an ageing demographic that wants to downsize. They don’t want a house; they want an apartment. Something that is more manageable, single-level.”
That does not mean we all have to live in apartments. What we get instead is greater choice. “We’ll end up with a mixture.”
There are thousands of stand-alone houses to choose from if that’s what you want. But if you prefer the ease of apartments that should be an option too.
In November, Gisborne District Council will put the Future Development Strategy draft out for consultation. It will set out where we can build to allow for housing and business growth in Tairāwhiti. The document is forward-thinking and aspirational. While the traditional Kiwi dream of a quarter-acre section remains powerful, it’s crucial to recognise that times are changing. Build-to-rent housing can offer a different, more sustainable dream — one that fits the evolving needs of New Zealanders.
- Jack Marshall is a freelance writer from Tairāwhiti and a former Gisborne Herald reporter.
