Christchurch rental crisis accelerating

Christchurch’s rental crisis continues to build with another 251 houses “red zoned” last week.

This takes the total number of red-zoned homes to 7056, orange zoned homes to 400 and white-zoned houses to 2100 (orange and white-zoned residences are yet to be assessed, although many are too damaged to be inhabited).

Out of the 7056 red-zoned homeowners, just 3626 have signed a sale and purchase agreement with the government and 2801 have been settled.

It is unclear how many of the homeowners who have settled still remain in their old homes.

But the numbers indicate that the rental crisis is accelerating.

The deadline for moving out is April 2013.

There are several thousand other Christchurch residences who require temporary accommodation as their houses are fixed.

Renters have told NBR Property Investorof being effectively evicted as lease agreements mature and landlords seek higher-paying tenants.

The residences they are compelled to consider are frequently below standard and in some cases landlords are not cleaning them

Earthquake Recovery Minister Gerry Brownlee has responded coolly to requests for the government to step up and assist with rental accommodation and with housing options.

He said it was it is best left to the market to respond to the hike in demand created by the earthquakes and the government compensation package.

On Friday he announced a new temporary village at Rawhiti Domain to help meet increasing demand for short-term rental housing.

The Canterbury Earthquake Temporary Accommodation Service has helped 250 households find accommodation. Sixty-four families have stayed in two existing villages before moving back into their repaired homes or new homes.

“The time has come to begin utilising this resource, so I’m announcing that over the coming weeks we will be rolling out a further 20 two-bedroom units on the Rawhiti Domain in New Brighton. A further 43 units will be placed on that site over the following months, as the need arises.


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2 Comments & Questions

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Listings on Trademe are very low in Christchurch, an conversely very high in the Hutt. Listings are also rising a little in Auckland now after a prolonged period of decline and low levels last year.
See my blog on listings here:
<url>http://listings.jonette.co.nz/blog/wellington-suburbs-overstoc.html</url>

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Whoever the policymakers are they have no understanding of reality wether it be Christchurch or Auckland or anywhere else.I had two older houses that I rented out that were due new and updated bathrooms and kitchens and paint and paper otherwise heaven forbid I would have been a slum landlord and the wrath of the gods not to mention the tenancy tribunal and many others would have been incurred.Funny as it may seem... but tenants like and expect clean modern facilities.I was about to do a refurb but when I was told I couldnt claim as an expense the significant upgrade capital costs I sold them to lovely young couples who live in them and did the work themselves and now there are two less houses for rental in the market.There are literally hundreds like me if not thousands and there will be fewer and fewer houses for rent as landlords simply will sell rather than spend the money for no benefit.How difficult was that to predict?
We are surrounded by fools and rents havent even touched the surface yet and there is every possibily we arent too far way from special incentives being introduced for suppliers of rental housing because of the private market retreat.Hey ..but who really cares anyway.

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