‘Don’t even bother applying’: Most expensive place to live in NZ
Wednesday, 7 February 2024
Bay of Plenty couple Kaysi and Sam Fredericks have viewed more than 100 houses in the last few months in their hunt for a home, as prices soar in what is now the most expensive region in Aotearoa.
“One agent told me don’t even bother applying. A viewing we turned up at had three streets lined with parked cars of other hopefuls. It’s impossible. Sam broke down in tears at one house. People don’t realise how hard it is here,” Kaysi Fredericks told Stuff.
Rental prices across Aotearoa are at record highs, but renters in the Bay of Plenty are feeling the most pain as it has now overtaken Auckland as the priciest region, according to latest Trade Me data.
Auckland had been one of the most expensive regions in 2023, but in December, the Bay of Plenty knocked it off the top spot.
Rent in the Bay of Plenty went up by 11.7% compared to last year, reaching a high of $670 per week. The Western Bay of Plenty surged by 14.2%, and Tauranga went up by 7.7 pe.r cent, pushing the overall rent figures up in the region, Trade Me’s Rental Price Index.
“In saying that though the Bay of Plenty rental market is tight, there are few offerings and prices are cranking up,” said Trade Me’s Property sales director Gavin Lloyd.
The Fredericks have noticed the rise in prices, and with four children, there’s little wriggle room in their budget, they say.
“Landlords are asking more and more as they know everyone’s desperate. There was a house on Cambridge Rd that I wanted to see which was $900 a week which is over our budget, but I thought oh maybe we can do it…but then I was told it had increased to $1200. They blamed a website error. Mmmn.”
Another renter Stuff spoke to suspected that people were making “sneaky offers” to secure a house.
Renee - who didn’t want her last name used for privacy reasons - is stressed trying to find a house for herself, an administrator, and her partner, a qualified registered builder, and their two children, since their landlord of three years also decided to put their rental on the market.
“We have four weeks to be out of our place and find something else to call home. I’m seeing at least two houses a day, and it’s a struggle. There’s at least 50 people at each viewing. I reckon if people have the money they might be offering more to make sure they get their foot in the door.”
Renee’s family had been used to paying “high $500s” a week. Now they are facing “at least $750 a week.”
“And that’s not necessarily in a good area, and some of them are shoe boxes and no garage or even section.”
She believes they tick all the boxes landlords might look for,
“We pay rent on time and have never missed a payment. We will treat the home like it is our own. We’re a very house proud clean and tidy family. Excellent references.”
She knows of people looking for a year, or people leaving town because they cannot find anywhere that they can afford.
“Our life is here, our jobs, the kids’ schools. I can’t believe this is what it’s coming too if the prices are driving people out of town.”
Others are resorting to creative methods to stand out in the crowd, putting photos and bios on social media. That’s the tactic Janine Hook used when she recently immigrated here from South Africa with her husband and 7-year-old daughter.
“I didn’t know anything about the rental market in Tauranga, other than being told you had to be on the ground to view and be chosen so we couldn’t do it from overseas.”
They landed on January 20, expecting they would only spend a week in a bed and breakfast, but soon discovered how fiercely competitive the market was.
“I started to panic. So I put the photo of us on a community site explaining our position. One person did ask why we would relocate to an already bulging city, that has a severe housing shortage, but everyone else was so helpful.”
When she joined a group for South Africans in Tauranga, she quickly found a three bedroom home in Ōtūmoetai for around $650 a week after someone contacted her privately.
“We feel very lucky as it’s near a great school, which I think is what’s saturating the market as well. Our good references helped - we’d been in a previous rental for 13 years, and my husband’s solid job, so I definitely think it’s good to say a bit about yourself to stand out.”
Janine Evans owner of Evans Property management said the Bay of Plenty is facing a surge in house rents driven by the rising demand for rental properties, fuelled by population growth and economic opportunities.
“The imbalance between demand and supply has driven rental prices upward. This situation poses affordability challenges for tenants, particularly those on fixed incomes or with modest salaries.“
One solution in response to the current market is shared living arrangements so the burden of increased cost is split between more people, she said.
“Individuals and families are exploring shared housing arrangements such as living together with family or friends, an arrangement which the agency helps and supports.”