Southland's share of affordable rental housing has fallen significantly in the last five years, having the biggest decline in all regional areas across the country.
The Child Poverty Action Group released a report earlier this week indicating that the share of affordable rentals had significantly decreased in most of the regions, with Southland falling by 26%, the highest of all regions surveyed.
Researcher Greg Waite found there were prominent declines in affordable rentals for low-income working families in 12 out of 16 regions between 2018 and 2023.
"New Zealand’s private rental market consistently rates as one of the most unaffordable in the OECD.
"This is because successive governments have chosen housing policies that have failed to match the supply to the demand for affordable housing," Mr Waite said.
In Southland, the median rental as of December 2023 was $430 a week, according to figures provided by Tenancy Services.
Rental property in Southland was still the cheapest for the regions but a rapid rise in prices had caused it to catch-up with the rest of the country.
Property Brokers general manager, David Faulkner, said if you looked at rental prices across provincial New Zealand, rentals had gone up by double-digits and Invercargill was no different.
A huge demand for rentals outweighed the current supply. There were also other various factors, including net migration, which led to rental-price increases.
"Our experience on rental affordability is... rents have increased hugely along with everything else,"T & T Property Management property manager, Tony Mennell, said,
"Tenants have definitely mentioned the increase in the cost of living but a lot of tenants prioritise paying their rent on time.
"Some owners are more mindful around rent increases and taking the cost of living into account."
Rent South agreed that rental prices had definitely increased over the past few years but their experience was that "rents seemed to be stabilising".
They recognised that they "were in a supply and demand market" and there appeared to be more listings of late.
Rent South business owner and property manager, Leeann Tautari, said there were currently 66 two- and three-bedroom properties advertised on Trade Me.
The highest price was $650 per week and the lowest $365. The average market rent for a property was $470 per week.
A Trade Me report indicated 70% of people competing for Invercargill rental properties were aged under 40.
