Balclutha property managers say rental properties are in high demand in the town, because more professionals and newcomers to the town want to rent.
Property manager Phil Atkinson, of Good Hands Property Works, said he had been inundated with requests for rental housing.
"Some rental houses have been sold and there are more professionals looking for rentals."
Mr Atkinson has been a property manager for the past three years, but has owned rental properties in the district before and said he had not seen a market like this before.
"Normally you're busy, but it's more people circulating around the district, moving from house to house. Now it's more new people coming into the district and some locals coming back looking to rent. There's just nothing around at the moment."
Rents had gone up "fractionally" by about 5%, raising rents about $10 per week over the past few months.
"Houses aren't staying empty for long - the turnover is a lot quicker. A house will become empty on a Friday and tenanted by the following Monday."
Debra Young, property manager at Harcourts Balclutha, said that during her eight years in the job she often saw demand for rentals rise and fall.
"I've struck this before, but not with professionals. Normally it's seasonal workers looking to rent, I've never had so many professionals looking for rentals."
The number of houses available to rent stayed "pretty stable", with little movement, she said.
"There's definitely a demand for quality housing in Balclutha."
She said rental properties in the town were giving good returns at 8% or 9%.
This week, an online auction site had six listings for the Clutha district - two in Balclutha, three in Taieri Mouth, and one in Milton.
