A growing shortage of rental properties in the wake of increased migration and recent weather-related events is pushing New Zealand's rental market to a crisis point, according to new data. In this blog post, we'll delve into the details of this pressing issue, shedding light on the challenges faced by both tenants and landlords.
- The number of prospective tenants viewing each rental property has surged by a staggering 900%, with an average of over 50 viewers per property in just six months.
- Rental prices have surged by approximately five percent over the same period.
- The CEO of Impression Real Estate, Rishabh Kapoor, highlights the strain this shortage is putting on the inner-city property market. Desperate tenants are even offering up to $50 per week more than the listed price and, in some cases, resorting to bribes to secure a rental ahead of others.
- The high demand for CBD apartments is primarily driven by individuals who lost their homes due to storms earlier in the year and recent migrants, leading to a surge in first-time renters who may not be familiar with industry regulations.
- Kapoor emphasizes the need for better education of both landlords and new tenants regarding their rights and responsibilities under the Residential Tenancies Act.
- Ministry of Justice research reveals a 43% increase in applications to the Tenancy Tribunal compared to the same period last year, with an average of more than 2100 applications each month.
- Impression Real Estate is pioneering the use of artificial technology to aid tenants in finding properties and educate both tenants and landlords about their rights. The technology features a chatbot named "Marcia," which provides assistance and answers common queries, making it especially valuable for new migrants in different time zones.
- Kapoor stresses the importance of technology as part of the solution, but the company urgently needs more than 120 additional homes or apartments to meet market demand.
- Recent weather events have prompted some clients to seek CBD rentals to avoid properties with large sections or proximity to hillsides, which could be susceptible to slips or flooding.
- Downsizing from larger family homes due to affordability concerns is also contributing to the demand for rental properties.
- Kapoor envisions further technological innovations, such as virtual property viewings, but acknowledges that regulatory updates would be necessary to support these advancements.
In conclusion, New Zealand's rental market is facing unprecedented challenges driven by increased migration and weather-related events. The shortage of rental properties is straining both tenants and landlords, necessitating innovative solutions and potential regulatory changes to accommodate evolving needs in the rental sector. Impression Real Estate's use of artificial technology, represented by "Marcia" the chatbot, is one step towards addressing these challenges and providing valuable support to the growing number of renters in the market.