Shortage spells good times for landlords

The rental market, particularly in Auckland, could be about to turn.

After years of plentiful supply and tenants being able to pick and choose, some experts are picking a big change.

Auckland has more than 5400 places to rent, web data shows but Robert Mellor, the managing director of consultants BIS Shrapnel, said the city would soon not have enough places to rent. Mr Mellor said the city's population was growing by about 22,000 people a year but only a few thousand consents were being given for new dwellings.

BNZ chief economist Tony Alexander also said rental property was becoming a more attractive investment. Landlords were achieving good rent increases as pressures started to build in parts of the country, he said. "There has been a strong increase in lettings of property in Auckland over the past few months but a rent response has yet to occur," he said. "In the past few years the annual number of dwelling consents in New Zealand has averaged about 24,000. Over the past three months the annualised rate was below 14,000. Where are all those people, who were finding accommodation unaffordable before, going to find places to live?

To read the full NZ Herald story click here

Posted: 26 Feb 2009

News articles