Libby Wilson / Staff
At Feilding, the median weekly market rent has risen to $ 500.
In the Manawatu area, weekly rents have risen by double digits.
The median weekly rent increased by 26.4% over the year to March 2022 to $ 469 per week, according to the latest Economic Report by the Manawatu District Council.
The median rent rose 7.1% across the country to a record $ 514 a week, followed by a sharp rise.
This, along with rising living costs, high interest rates and strict lending rules, made it difficult to access affordable homes in the region.
read more:
* Rent jumps to record maximum: Trade Me
* Trade Me: Rental market bouncing after a quiet April
* Trade Me says it’s a tough time for students looking for a flat
Feilding has recorded a median market rent of $ 500 per week, which is $ 560 for a three-bedroom home and $ 750 for a four-bedroom home.
The council blamed the lack of real estate supply due to population growth and rising rents in the district.
Council economist Stacy Bell said there was not enough supply.
“Supply is even lower than the demand from the district’s continued population growth.”
In the three years to June 2021, the county’s population increased by an average of 2% per year, and the county recorded an average increase of 1.5%.
According to the report, the number of rental properties in the formal rental market has grown to zero throughout the year.
Supply / staff
Cam Jenkins of Manawatū Tenants Union says the lessee is in a difficult situation.
Manawatu Tenant Union coordinator Kam Jenkins said it was certainly not an easy time for renters.
“Currently we are in a tricky situation, which is just the tip of the iceberg.
“The situation will get worse as rents rise by 3-5% every 12 months.
“If the weekly rent goes up by $ 50, but the tenants’ incomes remain the same, they will need more profit (money) from the government.”
He said he needed to change the way people think.
“The landlord needs to understand that in a country like New Zealand where we are facing a housing crisis, providing rental housing is social welfare. It’s not a business.”
The situation is complicated, said Cheri Birch, the founder of the region, who has built homes for low-income households.
“There are definitely few homes available. To ease the pressure on rental supplies, we need to address not only housing supply constraints, but also other issues related to consent grants and land costs.”
Homes for People built 60 temporary housing and occupied all of them.
The council agreed to 220 new homes in the area during the year to March 2022, but housing was difficult to build due to labor shortages in the construction sector and logistics constraints.
Bell said: “Housing is taking a long time to build because of the growing need for labor in this area.”
Jenkins said setting minimum and maximum weekly rents can protect both renters and landlords.
“Similar to the minimum wage campaign, we need to run the campaign and agree to set a minimum and maximum rent in a particular region.
“It will work for both tenants and landlords.”