Hamilton is facing a major residential rental property shortage, according to Lodge Real Estate managing director Jeremy O'Rourke.
"Hamilton's rental supply is at a critically low level, and unfortunately there is little good news for those looking to rent in the near future. Currently we have less than 1 per cent vacancy. We are signing new lease agreements for our rental properties even before tenants move out."
Mr O'Rourke said the Reserve Bank's Loan to Value (LVR) restrictions were the key factor behind the lack of supply and few new rentals becoming available in the near term.
The LVR restrictions on property investors coupled with a pull-back in lending by the four large Australian banks had the effect of turning off the lending tap and side-lining demand from buyers. However, buyers and sellers are poised to move as soon as restrictions are eased, which could create another market surge.
"Half way through this year we have seen a marked difference in Hamilton's residential property market in comparison with the past two years. The frantic activity we have seen is over for now and the city's home sales activity is easing into a more normal market rhythm."