Students priced out of digs

Students are having trouble finding affordable accommodation in Auckland because recession-hit families are moving into rental properties.

The residential team leader for Auckland University of Technology's Wellesley Student Apartments, Treena-Jay Tracey, said there has been an increase in the number of students trying to find somewhere to live.

Third-year AUT student Hannah Bartlett said her only option was to live in a hostel, having found it impossible to find a house to rent in Auckland.

"I've looked at more than 30 houses. Sometimes agents said we would be suitable tenants, but at the end of the day they prefer families over students."

Salvation Army community ministries spokesman Gerry Walker said the recession was affecting working and non-working families.

Authorities should be working together to make sure everyone had somewhere to live, he said.

Housing Minister Phil Heatley said the problem was likely to resolve itself as more properties came on to the rental market.

But estate agency Harcourt's branch manager Dennis Tana said the rising demand for rental accommodation meant there were more potential tenants than available houses.

"Mortgagee sales are on the rise because people can't afford to own their own home, while others are selling their homes to keep their business ventures afloat," he said.