For others, the dream of home ownership is fading fast and some are picking up second jobs as they battle to pay the rent.
It comes as bond data from Tenancy Services shows median rents across Otago have risen steadily in the past three years, reaching record peaks last year of $800 a week in the Queenstown Lakes area and $680 in Dunedin.
Trade Me’s Rental Price Index for December showed rents were increasing faster in Otago than any other region.
Year-on-year, prices in Otago increased 11.6% — nearly double Southland’s rise, the next highest region at 6.8%.
Among those who spoke to the Otago Daily Times about the impact of rising rents was Oamaru resident Matthew Schobs.
His family had been living in their current rental for about six months and paid $460 per week, but since the property had been put on the market, they were struggling to find an affordable alternative.
One "dated" property he viewed was $500 per week and had no heat pump.
He said rental properties in Oamaru regularly cost upwards of $500 per week and viewings usually attracted at least 10 prospective renters.
"Housing NZ won't help unless we get an eviction letter, which will only happen when the house sells," Mr Schobs said. "I've been homeless myself and will not put my family in that situation."
A mother told the Otago Daily Times said she had been forced to move back in with her parents in Wānaka after her previous rental was sold.
"It’s heartbreaking and endlessly stressful for everybody, but low-income families and solo parents certainly feel the extra pressure to just get by week to week with no end of financial stress in sight."
She received the solo parent benefit and said Work and Income would not support her if she chose to live in Wānaka as the cost of housing was too high.
As a result she had been forced to accept she could no longer live in the town.
She had secured a house in Alexandra but, at $700 per week, making rent would still be a stretch and the thought of home ownership was an "ever-fading fantasy".
"Even my 7-year-old has asked, ‘Will this house be the one we can stay in longer, Mum?"’
Another woman said she and her husband had been saving for the past seven years in the hopes of buying their own home — but rising rents had made that dream become more and more distant.
"I understand that landlords are facing their own increases, which in turn affects rent prices, but in my opinion, that’s the gamble they take when they choose to purchase homes to rent out and basically use to pay off the mortgage for them."
She said most of the couple’s pay went towards rent and her husband had picked up another job to stay ahead of costs.
Dunedin resident Tyler Christmas said he was forced to move from his flat after the new landlord upped his room’s rent from $200 to $440 per week.
He was told the rent increase reflected the value of renovations to the building, which had not been completed by the time Mr Christmas moved out.
Dunedin Community Ministries manager Logan Bathurst said he was "not at all surprised" rents continued to rise after the reintroduction of tax deductions for interest on residential investment property in April last year, which the government said would benefit renters.
"The trickle-down stuff never works as intended."
The organisation received up to 15 inquiries a week from people, largely seniors, needing help paying rent or finding an affordable place to live.
"We’ve even had an inquiry from a 96-year-old which, I think, speaks volumes," Mr Bathurst said.
"There’s just not housing out there to equalise the rent increase and demand."
Queenstown Lakes Community Housing Trust chief executive Julie Scott said demand for the organisation’s affordable housing had increased significantly in the past four years — particularly from long-term locals and seniors.
"I do expect that we will continue to see that grow."
Research by the trust found rents had not increased significantly in the past six months, but there were signs things were getting tougher in the last month.
Ms Scott said more high-density housing was needed to match the district’s growing population.
Otago Property Investors spokeswoman Kathryn Seque-Roche said rent rises were linked to increasing costs of insurance and rates.
"The transport costs of groceries go up, the price of groceries goes up — it's the same for rents," she said.
"If the insurance and the rates keep skyrocketing, then unfortunately rents will have to follow to cover those costs, otherwise the landlords won't be able to service them."
Interest deductibility helped ease the burden, but until insurance and rates decreased, it would not be enough to offset costs, Ms Seque-Roche said.
"If the councils around Dunedin, Otago — New Zealand, really — were more open to development and moving forward, then I think that would really help stabilise the rental market and the housing market.
"Supply and demand is a simple thing really at the end of the day."
