Editorial: Tough side of rental boom

The rental market in Tauranga is surging ahead.

The Tauranga property market reached a significant milestone this month when average values moved past the 2007 peak.

The rental market is also surging ahead. Trade Me figures show the average median rent jumped from $360 in May 2014 to $395 in May this year.

It's good news for homeowners and property investors because their assets are increasing in value.

However, the rise in rents has made it tough for some families - especially if they have fallen on hard times. This has been compounded by a lack of emergency housing in the city.

Tauranga mum-of-two Aria Koha knows first-hand how bad the shortage is.

She has been relying on the support of good friends to house herself and children.

She was evicted from her rental home in January for rent and water-rates arrears, which she is now paying back weekly after facing the Tenancy Tribunal.

Because of this, she cannot get a private rental and has been trying to get into a state house.

Te Tuinga Whanau Support Services Trust director Tommy Wilson describes the lack of emergency housing as a crisis.

The service is often full of people looking for emergency housing. Many of the trust's clients resulted from a family unit breaking down. Often, the clients are not from Tauranga but have ended up in the city because of their situation.

His trust, together with developer Paul Adams, has created a project named Whare for Whanau, with a goal to set up a "little community" of six or eight houses for emergency housing.

Bay of Plenty MP Todd Muller acknowledges more emergency housing is needed.

Mr Muller says Social Housing Minister Paula Bennett is undertaking a national review of existing emergency housing stock and exploring options to tackle the problem.

A solution needs to be found soon.