Connect Realty featured in another article this week in the Bay of Plenty Times. This article was focused on rent increases in Tauranga and the surrounding areas. The current rental shortage has been developing over the last 12 months, and rent increases are occurring for a number of reasons:
- Supply and demand. Currently Tauranga is experiencing huge population growth, with people choosing to move to the Bay of Plenty from Auckland and other regions because of lifestyle and employment options. This has resulted in an increased demand for housing which has yet to be met by new builds and developments.
- First home buyers are purchasing former rental properties, as they are often more affordable homes, resulting in a shortage of rental properties available to tenants.
- Rate increases in the area has meant landlords have had to increase rent prices.
- Landlords have had to increase rents to meet maintenance and upgrade costs, such as installing efficient heating solutions like heat pumps and double glazing.
The current rental problems will not be fixed until the housing stock in Tauranga significantly increases to meet the extra demand. At present there are 30% fewer houses on TradeMe than this time last year – so we are still some way off from seeing the market correct itself.
If you are a property investor, or if you are considering investing in property on the Bay of Plenty, give Chris a call or email today. We can provide you with real estate statistics for the Tauranga area, expected rental returns and discuss our property management services with you. Visit our website and our Contact Us page for more information.
Read the full Bay of Plenty Times article by Catherine Gaffaney and Ruth Keber – Short supply nudges up rents