A Bay of Plenty renter has described her search for a property in Tauranga as “chaos”, as she and her husband had to compete with “probably 50 other couples and small families” at viewings.
Tauranga, in the Bay of Plenty, has been named the sixth most expensive district to rent in New Zealand in August, according to Trade Me figures.
The district’s median weekly rent was $680.
The median weekly rent in Rotorua was $550 in August, up $30 on the same time last year.
The most expensive district was Auckland’s North Shoreat $730 per week, followed by Wellington’s Porirua at $695 per week.
Felicity Haymes, 22, and her husband Riley, 26, who live in Minden in Tauranga, pay $510 a week in rent for a two-bedroom house on their landlord’s property.
“We found a place in April this year and we were super lucky as we were the last people the couple [landlord] let through the house.”
Haymes believed they were paying “cheaper” rent because the landlord lived on the same property.
She and her husband both worked fulltime.
Haymes said the couple went to nine or 10 house viewings while searching for a rental and found the process chaotic.
“Anything remotely affordable was being snatched up within a day of being listed,” she said.
Haymes said there were often “probably 50 other couples and small families” at the flat viewings while they were searching for a home. The properties the couple was viewing were often listed for up to $750.
She believed Tauranga being the sixth most expensive district to rent in New Zealand was “pretty ridiculous”.
“We looked at houses [which were] falling apart charging $750 for rent,” Haymes said.
Haymes believed removing the interest deductibility from residential investment properties “forced more houses on to the market” and “had the unfortunate consequence of driving rent prices through the roof”.
She said the property in Minden was a “great location” and the couple planned to stay there while they saved for a house deposit which she said was “very daunting”.
Trade Me Property sales director Gavin Lloyd said in a written statement, said “Tauranga was a surprising addition to the top 10, coming in at number six, with a median weekly rent of $680 in August, overtaking rents in Auckland and Wellington city.
“There’s a lot to love about living in Tauranga with the beach at your doorstep and relaxed lifestyle.”
Speaking to The Bay of Plenty Times Lloyd said “The median weekly rent for a three to four-bedroom home in the Bay of Plenty was $690 in August while a one to two-bedroom home was $550.”
He said the reason rent prices were higher in August was due to “falling supply and increasing demand” and “rental price jumps” impacting most of the country.
Lloyd said rental prices were likely to “continue their upward trend over the next year” which would “make it tough for Kiwis already facing rising costs across the board”.
Bay Financial Mentors Tau Awhi Noa manager Shirley McCombe said housing was a “huge problem in Tauranga”.
“We can’t reduce rents or mortgages, but we can help people manage their finances, give every dollar a job, plan, prepare and be mindful.”
Rotorua Budget Advice manager Pakanui Tuhura said “People have been struggling to pay rent in Rotorua since pre-Covid-19 when the price of homes rose sharply and rents followed suit”.
He encouraged people to build a positive relationship with their landlord so if rental issues arise they were “forewarned” and “able to plan ahead”.
Tuhura said preparing for rental costs to increase was dependent on “each individual or household [and] their circumstances” but increasing current sources of income or moving to a better-paying job were options.
Rotorua Rentals director Pauline Evans said she saw some tenants who struggled with their rental payments and suggested to clients who were in financial difficulties to get professional budgeting advice.
“Once this may have been seen as failing, however with the cost of living biting across the board we’re needing clients to think more carefully about each purchase they make, and where they spend their money.
“As long as we have the demand from the market for rental accommodation I see no decrease in the rent levels over the next 12 months.”
Evans said to prepare for the next 12 months, tenants could look at taking in a boarder if their landlord agreed and to look at what they were renting.
“We are still having inquiries from single people wishing to rent three-bedroom houses because they have so many possessions. Maybe looking at rental accommodation closer to town so they can walk to work.”
Ministry of Social Development acting regional commissioner Graham Allpress said the ministry had a range of housing products available to support eligible clients in maintaining suitable accommodation.
“These include ongoing financial support with rent and housing costs, as well as one-off payments to cover bond, rent-in-advance and situations when unexpected costs temporarily put extra financial strain on the tenant.
“We support more than 340,000 New Zealanders with accommodation supplement payments to help with their rent, board or the cost of owning their home.”
He said if people needed extra support to pay for accommodation or other essential living costs, they may also be eligible for Temporary Additional Support - this was a form of non-taxable supplementary assistance.
“If people are struggling with costs, we invite them to get in touch with us to see what support MSD may be able to provide.”
In July, the Bay of Plenty Times reported people living in places deemed Area 1 could qualify for the highest maximum accommodation supplement rate, while those living in Area 4 may qualify for the lowest maximum rate. Rates could vary depending on what other type of support a person is receiving or their income.
Tauranga - alongside Auckland - was in Area 1 where a single person with two children can receive a maximum of $305 a week.
In Area 2, which included Te Puke, Katikati and Waihi Beach, the same person would get a maximum allowance of $220.
In Area 3, which included Rotorua, the same person would get a maximum allowance of $160 a week.
Michaela Pointon is an NZME reporter based in the Bay of Plenty and was formerly a feature writer.
Clarification
Tauranga was the sixth most expensive district to rent in August, rather than Bay of Plenty.
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