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'Nowhere to go': Renter desperate to find new home to avoid emergency housing

Author
Megan Wilson, NZ Herald,
Publish Date
Tue, 29 Nov 2022, 8:52am

'Nowhere to go': Renter desperate to find new home to avoid emergency housing

Author
Megan Wilson, NZ Herald,
Publish Date
Tue, 29 Nov 2022, 8:52am

Rotorua renter Abigail Hargreaves fears she will end up back into emergency housing when she loses her rented sleepout, saying she will have 鈥渘owhere to go鈥.

The 29-year-old said she had moved six times in two years due to 鈥渞idiculous鈥 rental prices in Rotorua. This included a stint in an emergency housing motel.

Now the sickness beneficiary and cat owner, who needs to move by December 11, faces house hunting heading into a summer a Trade Me analyst says could bring a 鈥渘ew record high rent鈥 in Rotorua if supply does not keep up with demand.

The latest Trade Me figures, for October, put Rotorua鈥檚 median weekly rental price at $500 鈥 the same as September and as October last year, but down from a record $550 in June. Rental prices increased the past two summers.

And a local rental expert said while some landlords had been reluctant to put rents up, rising costs meant increases were inevitable.

Hargreaves said she viewed Rotorua as 鈥渙ne of the worst places to find a place to actually live unless you鈥檙e an elderly person, or unless you鈥檙e working or unless you don鈥檛 have a pet鈥.

Hargreaves was living in a sleepout, which she said she loved 鈥渟o much鈥, but the owner had decided to prepare the home to be sold.

鈥淚 was so settled where I am now - I loved it because it was nice, I had my own kitchenette, I was only sharing a bathroom inside, I got along with the landlady 鈥 it was right next to shopping areas and it鈥檚 walking distance to the bus [stop].

鈥淣ow I have to move again, and it鈥檚 not very easy for somebody like me to actually find a place to live.鈥

She said if she did not find a place to live by December 11, 鈥淚 will have nowhere to go and I have to go back into emergency housing鈥.

She believed a lot of renters were facing having to move because the home was being sold or rented to family members.

鈥淚t鈥檚 just really hard for people who [are] renting.鈥

Hargreaves said she was looking for 鈥渁nything鈥 - 鈥渁 flatting situation, a sleepout, something that I can call my own so I don鈥檛 have to move again.鈥

However, having a cat and not working made it difficult.

She described her cat as her 鈥渟upport animal鈥 and said she did not work because she could not work, not because she did not want to.

Hargreaves had applied for about five or six rooms, and one sleepout. She wanted something permanent and hoped to be settled by her upcoming 30th birthday so she could enjoy the milestone 鈥漺ithout having to stress.鈥

Rotorua Rentals owners Pauline Evans said some owners had indicated they did not wish to increase rents at this stage, however, faced with further increases to rates, insurance, mortgages and maintenance costs meant rent increases were inevitable.

She said rents seemed to be following a similar pattern to that of the past year, but at less of a 鈥渇rantic pace鈥.

鈥淲ith the shortage of housing stock, across all property types, there continues to be upward pressure on rents and this drives rents higher.鈥

Evans said the Government had advised higher immigrant numbers could be expected, which would bring more demand into a residential sector that was 鈥渁lready struggling to cope鈥.

鈥淏uilding houses and increasing the housing pool is one step, however enticing investors to have the confidence to buy residential rental properties would release properties into our portfolio at a time that it urgently needed, now.鈥

Rotorua Property Investors Association president Sally Copeland said anecdotal evidence suggested rent prices had been 鈥渟tatic鈥 for the last quarter.

鈥淎s we start to see more tourists visit our region, some property owners will be considering switching to short-term rent opportunities,鈥 she said.

鈥淲ith motels being used for emergency housing, the need for tourist accommodation can be filled with the likes of Airbnb.鈥

However, the downside could then be the reduction of long-term accommodation, increasing demand and therefore increasing rents, she said.

Trade Me property sales director Gavin Lloyd said its figures showed rental supply in the Rotorua District increased by six per cent year-on-year, while demand fell by five per cent.

鈥淕oing into the typically busier summer months, if supply can鈥檛 keep up with demand we may see a new record high rent in these districts.鈥

Rents have risen during the past two summers in Rotorua.

In January, the Rotorua Daily Post reported the city鈥檚聽. By April,聽听补苍诲听.

In December 2020, the聽聽and by聽

Nationally, the median weekly rent climbed back up to $580 in October - matching the all-time high first recorded in April.

It was up 4 per cent - or $20 - on the same time last year, the smallest year-on-year percentage jump in more than 18 months.

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