The decreasing affordability of purchasing homes specifically for first time home buyers has brought on a growing demand for good quality rental properties in the New Zealand market. Those leaving home who customarily would be in search of buying their first property are now postponing the process. Research conducted by BRANZ shows that New Zealand house rentals have now become an important part of moving towards homeownership. In other situations, the decreasing affordability of land in New Zealand has begun to alter the attitudes towards homeownership of many people. Many people are taking on the ‘rent for life’ idea as a plausible reality. The increasing mobility of the workforce has also strengthened this attitude as the flexibility of rental properties allows one to move locations, regionally, nationally and internationally. Rental properties also allow for the adjusting to varying circumstances and requirements of housing and house rentals burnley the pressures that the contemporary working family faces.
Homeownership is profoundly entrenched in New Zealand culture as the buying of one’ own home is seen as a rite of passage to adulthood. In spite of this, the idea of a home needs to meet specific criteria and some of the houses available to first time home owners is not acceptable or satisfying. Those who are proud of their homes and also seek prime location preference for schooling zones have decided that New Zealand house rentals are a great alternative. They are happy with rental homes that are contemporary, comfortable and in the locations that they seek that may not be available under the present environment of property pricing.
The increasing reliance and consequential demand for New Zealand house rentals is apparent in the latest research available on the rental market. Statistics provided by Real Estate Institute over the past three years show that rental properties are progressively increasing in demand. On top of this, very current figures have shown an explosion in demand for New Zealand house rentals. In March 2010 the number of properties rented increased to 16,286; almost 10,000 more house rented than in February of the same year. The figures are astounding and point towards a real chance for acute investors and commercial property developers to take advantage of these trends. People may be demanding affordable and low quality housing, but there are also large numbers demanding top quality housing in great suburbs that are not so cheap.
Looking around New Zealand at specific city’s rental property trends, Auckland has seen an increase in rental property prices in 2011. Statistics provided by Barfoot and Thompson show that the months of March and May of this year saw the biggest increase in demand for house rentals. The ever growing population of Auckland has assisted this increase significantly. According to information provided by First National, Nelson Bay region and Tasman Bay region are also experiencing a strong demand for rental properties. In contrast, Wellington saw an increase in house vacancies and this is in part due to business closures and downsizing in regional centres compelling people to seek work in other parts of New Zealand.