"A year ago what may have been $280 but is now, $320, $330 for the same house simply because of the supply and demand."
He said he expected the lack of supply to ease in the next few months as the region was attracting investment buyers.
"We've had five properties listed with us this week from investors in Auckland. They're finding the returns are too low in Auckland so they're coming to Rotorua. We're gradually getting more stock in."
Sales manager for Eves Rotorua, Tony Stack, said there was a good demand for quality family homes.
"I think there is a lack of supply both in terms of rental and the product to sell," he said.
"Good family homes are in demand and any new listings would help. [We are also seeing] a lot of Auckland investors who are looking for better quality properties."
Mr Stack said they were also selling entry-level homes around the $200,000 - $300,000 price with bank interest rates at a lower level.
Rental manager for McDowell Professionals real estate, Carol de Farias, said they were "run off their feet" taking extra people to viewings of vacant homes.
"They seem to be going as quickly as they come. We've probably only struck it [lack of supply] a few weeks ago but there have been indicators for a while now, such as being being snapped up straight away and not having as many on the list but actually now a gap," she said.
While investment property owners may be enjoying a flush period, it was a nightmare for Mary Warena and her family of six.
"Our previous house was sold five months ago and we've been looking ever since. I'm staying with my mum a the moment and it's so crowded in the house," Mrs Warena said.
"We're willing to spend up to $300 but I want a decent house for that price, something fully fenced with either a garage or carport with heating for my kids.
"I can't even remember how many we've seen. I'm not being fussy I'm just going by what I think my kids should live in. We've seen places that aren't liveable with wallpaper peeling off, carpet ripped, cold and with mould and they're wanting $290 for it," she said.
"We're a working couple, with good references, we make money and pay our rent, we just want something that is suitable for us - and there's nothing."
But for solo mother of three, Ngatiira Peita a three month search for a suitable house is over. The junior chef, who has recently moved from Kawerau, has been staying in crowded conditions with extended family. She picked up the keys for a $290, three bedroom rental property through Rotorua Rentals yesterday.
"I've seen about 50 houses. I've come across half a dozen good sorts of homes for us but they've been out of our price range, $350 up. We were ecstatic when we hard the news [they had the house], it we thought it was too good to be true. I've been staying with family with nine of us in a three bedroom home so today is an extremely awesome day for us."
