Dan Keller, owner of several rental properties and manager of property management business Rent Pro, believes it is a good thing there is a high percentage of property investors buying in Tauranga.
"As a property manager it's very hard to get stock - I think it's good for Tauranga because of the rental shortage," he said.
The recent LVR restrictions had been slowing some property investors down, Mr Keller said, although not as badly as initially thought.
"A lot of property investors are starting to look into commercial properties at the moment."
High home values were causing yields on rentals to shrink and property investors had to be patient and play the long game, he said.
Rental yield was the annual rent a property was capable of producing expressed as a percentage of its purchase price - used as an indicator of a property's income producing ability.
"Property investors see buying rentals as a better investment than leaving money in the bank. Interest rates aren't that great, yields are not that great either but there's the possibility of values going up and eventually they will."
Mr Keller said most people bought multiple properties for retirement.
"I don't know anyone who doesn't do it for retirement - they don't trust they will have enough money from the Government and in New Zealand it's a very good way to be prepared for retirement."