Rental Supply Shrinking

But not where you are led to believe.

Taking a look at the major centres shows a considerable difference from the perception the news media are being fed. Auckland and Christchurch have plentiful supply of private rental properties, the real supply shortages are in the remaining regions. The worst of the major regions is the Bay of Plenty, or Tauranga.

However in some smaller regions supply is simply very short.

Looking at all regions, only Canterbury and Auckland stand out as being close to equilibrium of 3%. Knowing that Christchurch is about right, since prices have stopped falling, it would appear a closer “balance” to reality in NZ is about 2.5%. However there are now many regions where supply is seriously low, and has been for a long time:

  • Central North Island regions are all well below 1%
  • Minor South Island regions have all lost significant levels of supply, now almost all below 1.5%

Some regions may be very different because of advertising or bond usage differences

Jonette 2011