There is a shortage of four-bedroom rental properties across the country, demand for all types of rental accommodation in Auckland and a small overall increase in rents, according to First National’s latest quarterly residential property management survey.
First National surveys its network of property managers around the country every quarter and the nationwide shortage of four bedroom properties was one of the major trends highlighted this quarter.
The balance of supply and demand shows supply of two bedroom properties is even, but three and four bedroom homes are in short supply, although there were regional differences in whether high end or low end properties were in demand.
While 87% of respondents reported a shortage of four bedroom properties in their areas, just 30% reported rent increases for four-bedroom homes.
Demand for three bedroom properties had a much stronger correlating rent increase with shortages in 65% of regions and rent increases for three bedroom properties in 41% of those regions.
The last two quarterly surveys found the availability of rental property in Auckland decreasing, a trend that has continued this quarter. The latest survey found a vacancy rate to mid October of just 1.7%, where it has hovered since January.
Across the rest of the country (excluding Christchurch) vacancy rates have either remained steady or risen slightly, with a national increase of 1.3% (to 6%) on the same time last year.
"In those areas, predominantly regional towns and cities, landlords are working overtime to retain tenants," said First National general manager John Stewart.
The survey also found rent increases ranged from $5 to $20 per week.
"As one would expect, those areas where it is proving difficult to fill properties, rents have remained stagnant or even dropped," said Stewart.
"We still hear tales of younger tenants and couples heading back to parent's homes, or several couples moving together to share larger homes."