Catrina Morris. Photo / Andrew Warner
It has been another busy and interesting year in our region. We revisit some of its best premium stories from 2022. Originally published on August 1.
Rotorua renters are struggling with increased prices and low supply, with one renter saying she will “go bush” if her rent goes up again.
For the first time ever, the median rent in the Bay of Plenty has surpassed both Auckland and Wellington, making it the most expensive place to rent in the country.
Rotorua resident Catrina Morris' rent for her three-bedroom rental is increasing by $30 a week to $520.
The solo mum said she doesn't understand how people are meant to live.
"May as well go bush."
She figured the reason rents were on the up was because landlords' expenses were increasing and were being passed on.
"But it's not just the rent. It's gas price, food price."
One renter, who wished to remain anonymous so as to not impact future rental applications, has left Rotorua for Hamilton.
They were paying $490 for a three-bedroom rental.
They said the house has been relisted at a higher price.
"It's to be expected with the way things are at the moment."
It was near impossible to afford such high prices, they said, but when you were up against hundreds of others for a rental it was also impossible to move somewhere else.
They said they were lucky to receive financial help from family but understood not everyone was in that position.
"So my heart really goes out to them in these tough times."
Lynmore resident Lesley Mackle is renting while searching for a house.
"My partner and I are currently renting while we are on the hunt for our dream home and we have the best landlords."
Mackle said the rent, at $670 a week, was fair as it was a "gorgeous, warm dry home" and they were allowed their two frenchies to live there too.
"So yeah…I guess during difficult times, it's assuring to know there are some amazing landlords out there who genuinely want their tenants to be happy."
Trade Me's June Rental Price Index shows lack of supply in the region is driving prices up.
Trade Me Property sales director Gavin Lloyd said the median weekly rent in the Bay of Plenty reached a new high of $610, marking an 11 per cent year-on-year increase. When compared with the month prior, there was a 2 per cent increase.
Rent growth came down to supply dropping 5 per cent compared to the same time last year, which left renters with fewer options and higher prices.
By comparison, the Wellington region saw supply increase by 51 per cent year-on-year in June, while Auckland saw a 15 per cent jump.
Despite the demand for rentals in the Bay of Plenty dropping by 15 per cent year-on-year in June, dropping supply meant this was not enough to see price growth cool off, Lloyd said.
The most expensive district in the Bay of Plenty region in June was Tauranga, where the median weekly rent increased 11 per cent year-on-year to $640.
In the Rotorua district, the median weekly rent was $550 in June, jumping 12 per cent year-on-year.
"Looking ahead, if rental supply continues to fall while demand remains high in the Bay of Plenty region we are unlikely to see prices cool off"
Rotorua Budget Advisory Services manager Pakanui Tuhura warned increases in rental costs could not be ignored.
"Having a roof over your head is a basic human right."
Rather than moving, clients in Rotorua were doing anything and everything to keep that roof over their heads, he said.
This included taking on extra jobs, bringing in family as boarders, buying in less food or even changing dietary habits by not buying meat.
"In Rotorua, they have been doing this for quite some time now so my biggest worry is what will happen to the rent price of houses where the landlord has taken out loans to cover the cost of purchase and development, and the interest rate on those mortgages goes up?"
There were two basic financial stresses at the moment, he said: not enough money to cover accommodation, food, power and other costs, and not enough money to repay debt.
Rotorua Rentals director Pauline Evans said the TradeMe property stats indicated that Bay of Plenty continues to buck the trend of decreasing rental rates around the country.
"Our region, along with Hawke's Bay, recorded their highest median weekly rents ever in June 2022."
She believed this would change, with rents in the city stabilised, with no big jumps like last year.
The rental market was still buoyant with inquiries, but this had dipped in past days.
"Some of this could be attributed to our wintry weather. Another aspect we have seen over the past two weeks is tenants offering rent lower than the advertised rate."
Currently, a standard three-bedroom house in Rotorua would attract a weekly rent rate of $550.00 plus, depending on location, size of rooms, condition, garaging, and any extras.
"There is always high demand from those currently in emergency housing, evident from Facebook posts, and enquiries we receive both from clients wishing to rent and agencies wanting to assist their clients into housing."
Their financial situation meant many were unable to match rents others were paying for on properties.
"This imbalance will continue until the ratio of available properties improves, the supply and demand cycle will only be altered once we have more housing."
Evans referred to the recent government infrastructure funding announcement that aimed to pave the way for about 3000 new homes to be built.
"While this initiative is a positive step forward, there is a long way to go to satisfy the 6000 homes required by 2026 ... this is forward-thinking, however, it does nothing to relieve the current housing shortage."
She said there was also an introduction of "reluctant landlords" in that slowing sales forced vendors to find tenants when unable to sell.
Evans said this will give a false economy, as soon as the sales market picks up, they will sell.
A member of the public appears to try and slash the car's tyres to prevent escape.