Prices of rental properties are stabilising in Rotorua, but there is still high demand for quality homes in the district.
According to the latest Trade Me Rental Price Index for December, the average cost per week for a rental in Rotorua was $300, down from $325 in November, but up slightly from $295 in December 2015.
But, the national median weekly rent hit a record $450, according to a statement released by trade Me.
Rotorua Rentals owner Richard Evans said there was almost nothing available two months ago for prospective tenants, "but we have 15 to 20 available right now".
"Inquiries for those properties are still very high and they are going out the door quickly.
"I think rents are stabilising and getting back to normal," he said.
"There has been a drop in house sales, so a lot of the houses not being sold are coming back into the rental pool."
But, he said some landlords were asking too much for their properties and he had been talking to investors about how unrealistic some of their rental demands were.
"Rents had gone up because of the shortage across Rotorua and were getting to be out of reach for many people."
Mr Evans said it was even harder for people on benefits because their accommodation supplements were not going up as much as rental prices.
Principal real estate agent at Harcourts Rotorua, Hielke Oppers, said generally landlords could be a bit more picky with their tenants, "especially for the more well looked after properties".
"Just recently I had a rental opportunity and within 10 hours I had three or four applicants who wanted to get into it.
"It's all about supply and demand. Rotorua is doing well and the city is growing with more people needing housing...there's not enough houses across the board, to buy or to rent."
Mr Oppers said landlords were now being a lot more reasonable with rental prices and were looking for more stable tenants rather than charging high prices.
"Obviously it is partly about the money, that's why they are investing in property, but most landlords are sensible and want a tenant who looks after their houses.
"I don't think landlords are being unreasonable, but prices have increased significantly in the last 12 to 18 months, but that's just the market."
Mr Oppers said he was seeing more incidences of short term rentals with owners charging nightly rates, "that situation is growing in popularity".
Professionals McDowell Real Estate property management team leader Stephanie Trainer said there was still a shortage of homes, especially in the three bedroom standard family home range.
"In that range we are getting around 50 people interested in each of those viewings.
"The current market does mean our owners have that much more choice and they can be a bit more fussy.
"We are still getting quite a lot of inquiries from out of town people, but prices are not really increasing, but stabilising."
However, she said some landlords with longer term tenants had been charging less than market value.
"Properties in the late $200s are creeping up to the $320 mark or a little bit more."
Average rental prices in Rotorua
- December 2015: $295
- November 2016: $325
- December 2016: $300
Source: Trade Me Rental Price Index. Rental prices are $ per week