Rents in the region increased 16.3 per cent in a year and property prices increased 26 per cent. Photo / Warren Buckland
Rents in the region increased 16.3 per cent in a year and property prices increased 26 per cent. Photo / Warren Buckland
"I don't know what more can be done."
It's a frank admission from one of the women leading the charge to fix Hawke's Bay's housing crisis, as new figures show that affordability in the region just keeps getting worse.
In one corner are rental prices - officially the fastest risingin the country, up 16.3 per cent in a year, Trade Me figures for June 2020 to June 2021 show.
In the other corner are house prices - easing, but still among NZ's fastest rising, up 26 per cent from July 2020 to July 2021, OneRoof figures show.
It is a situation that has councillor Maxine Boag, who holds Napier City Council's housing portfolio, scratching her head over potential solutions to the "desperate" situation.
According to Trade Me's latest Rental Price Index, rents in Hawke's Bay have risen 16.3 per cent to a median price of $535.
In June there was an 18 per cent drop in the number of Hawke's Bay rentals listed on Trade Me Property compared to June 2020, Trade Me Property sales director Gavin Lloyd said.
"After months of pent-up demand in the region, we saw the median weekly rent remain at an all-time high despite a 30 per cent drop in enquiries on rental listings in June when compared with the same month last year."
NZ's rents were up for the year by an average of just 6.9 per cent, though the national median weekly rent reached a record-breaking $545 last month.
Manawatu/Whanganui had the second largest increase behind Hawke's Bay at 15.9 per cent.
"Prior to June, the national median rent sat at $540 from March to May - giving tenants around the country a moment to catch their breath.
"However, June data showed rents are back on the rise."
According to the latest figures from OneRoof and Valocity released today, Hawke's Bay house prices have grown 26 per cent, reaching a median of $688,000 in July 2021 compared to July 2020.
There was 6.2 per cent change in three months.
The median property value for Napier in July 2021 is $733,000, a $39,000 increase in three months, a $145,000 increase in 12 months and a $380,000 increase in five years.
Hastings now has a median property value of $701,000, up $44,000 in three months, $161,000 in 12 months and $371,000 in five years.
The median house price for the country has hit $791,000 in July 2021, up 21 per cent in 12 months.
Napier City Councillor Maxine Boag isn't sure what else can be done about the "desperate" housing situation the region is facing. Photo / Supplied
Boag said the situation is "very sad" for people who haven't got secure, affordable rentals or homes they own.
"People are just cut out of the housing market and the rental market ... the situation is pretty desperate."
"What do people do? We've already got scores of children growing up in motels.
"People really deserve a secure home and a sense of belonging. I don't know what more can be done about it, but it is a serious issue."
Boag said a friend of hers was looking at a three-bedroom house in Maraenui which was now a jaw-dropping $580 a week.
Hazlehurst said the housing situation in the region was "absolutely horrific" and a result of years of not enough houses being built.
People have been pushed out of the rental market and wages haven't had the same increase, resulting in a number of people turning to emergency and transitional housing.
One mother Hazlehurst has spoken to has been living in a motel for three years with her three children.
The council is "going as hard and fast as we can" when it comes to housing which is its "biggest focus and priority", Hazlehurst said.
