Data from Corelogic shows for about 20% of the country it is cheaper to service a mortgage than it is to pay rent, but it is still cheaper to rent in the Central Otago and Queenstown Lakes districts.
The data shows how median weekly rent compares to mortgage payments around the country, assuming a buyer has a 20% deposit.
The difference was greatest in the areas where housing was cheaper, such as the Taranaki, Southland and Kawerau districts.
At the other end of the spectrum, Queenstown was $930 a week more expensive to own than rent, Mackenzie District was $440 and Auckland $417.
In Wānaka and Central Otago, the average difference was $316 more a week for a mortgage than rent.
Wānaka property manager Home and Co chief executive Colleen Topping said the Wānaka rental market was steady, with tenants taking a month to find a home, on average. “Tenants are more price sensitive, so we have seen a lessening in demand for properties in the $1000-plus bracket.”
She said while there were more homes being advertised now than six months ago, the hardest homes to find would be for couples and singles looking for one- and two-bedroom places at affordable rates.
“There is a strong demand for one and two-bedroom homes, coupled with a shortage of one-bedroom places at the moment.’’
Ms Topping said she thought the National government’s changes to rental laws had made more landlords make their homes available for rent.
“There have been some positive law changes this year which has had a positive effect on owners feeling secure in renting their properties out.”
The 90 days’ notice periodic tenancy could be ended or a fixed-term tenancy ended on its end date, she said.
“There have been a number of new rentals built, particularly in Hāwea, increasing the supply which is also positive for tenants.”
She said there had already been a large number of applicants looking for homes for the busy winter period in Wānaka, meaning it would only get harder for tenants to find a home.
Harcourts property manager Mel Telke said the rental market was settling after several hard years for tenants.
“The Wānaka rental market is stabilising after a period of increased interest from homeowners wishing to rent their home and expectation was to get the best possible price.
“This came at a time when there was not a lot of properties available. We would receive large amounts of interest from applicants for the properties that were smaller, cheaper in rent and often not newer homes.”
— Additional reporting RNZ
