Rentals becoming unaffordable in Tararua District

Rental housing is becoming unaffordable in the Tararua district, according to statistics. Photo / Christine McKay

Rental housing is becoming more unaffordable in the Tararua District, according to data obtained through the Ministry of Business, Innovation and Employment (MBIE).

Nationally, affordability has increased by 4 per cent since 2013, but the figures for the district tell a far different story with a drop in affordability by 32 per cent over the same timeframe.

Housing affordability is based on the ability to balance housing costs with available household financial resources, meaning there’s enough left over to pay for other necessities.

It’s noted by MBIE that the change in rental affordability compares changes in rental prices for new tenancies, rather than established tenancies.

Comparing market rents through Tenancy Services doesn’t reflect the reality of rents either.

Tenancy Services data is based on the average of bonds held and is for the six months from June 1 to November 30, 2023.

According to the data, the average market rent between Woodville, Dannevirke, and Pahīatua is about $437, although this is across the board and doesn’t differentiate between property sizes.

Rental listings for the above average $416 per week but prices depend on the size of the house, number of bedrooms and condition.

According to data obtained by Property Brokers, there are 798 active bonds lodged for the district as of November 2023, 3.1 per cent more than the same period the year before.

Median rent in November last year was $445, an increase of 8.54 per cent from the previous year; however, this appears to be across all house sizes and is not differentiated by the number of bedrooms.

The issue of rent affordability is indicative of a wider problem.

Last year, then MP for Wairarapa Kieran McAnulty commented that there were not enough houses to meet the demand.

“So when demand is high, rent is able to be charged at a much higher rate,” McAnulty said.

Tararua District Mayor Tracey Collis believes there’s more to it than just high demand, saying that many “mum and dad investors” are choosing to give up their rental properties.

She says high interest rates as well as insurance premiums are factors.

As of December last year, there were 51 households on the Ministry of Social Development housing register in the Tararua District.

Government housing provider Kāinga Ora is now actively working to help the situation with two new homes already completed and tenanted in Dannevirke.

Graeme Broderick, Kāinga Ora regional director for Taranaki, Whanganui and Manawatū, says some progress has been made on a site in Woodville.

“We have completed our site investigations... and are working with Horizons Regional Council on resource consent requirements.”

Broderick says the community will be updated once they have an update on construction.

Last week it was announced that the provider has an agreement with NZ Housing Group confirming an intention to purchase seven two-bedroom homes to be built in Cole Street for public housing, once completed.

Broderick says the development is in its early stages and they are working collaboratively with the developer to ensure the homes will best meet the needs of the people and families who will live there.

“We will take ownership of the development once the homes are finished, and we will keep the community updated on progress.

“The homes are expected to be ready for local people to move into by early 2025.”