The Child Poverty Action Group released a report late last month saying the share of affordable rentals had significantly decreased in most regions and Southland fell by 26%, the highest of all regions surveyed.
In 2018 Gore had 91% affordability but that had fallen to 72% in 2023, when the survey was done.
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.
Mr Waite said the amount of construction in Gore was "well below" the national average.
According to StatsNZ, Gore built 2.4 homes per 1000 people in the March quarter of 2024. The national average is 6.7.
"It is also possible the over-investment in rental for tax-free resale profit took time to reach Southland.
"There is a cycle where speculative over investment takes off first in the cities, then spreads to the smaller regional centres."
Southland and Gore still had some of the most affordable rentals in New Zealand, he said.
"However, incomes are lower too, so Southland renters’ advantage [might] be lost in the future as the region is less likely to build its way to more affordable housing as we are starting to see in the big cities."
In Gore, the median rental from December 1, 2023 to May 31, 2024 was $448, according to figures provided by Tenancy Services.
Rental property in Gore was still among the cheapest in the country but a rise in prices had caused them to catch up with the rest of the country.
First National Gore Real Estate agent-owner Graham Maxwell said there had been "very little" vacancy for rental properties in Gore over the past few years.
"If you do have vacancy, you’re filling them within a week and the demand may be that you’ve got five or six people making inquiries."
With the construction of the Kaiwera Downs wind farm, migrating workers were inquiring about properties, he said.
"That puts a lot of pressure on our rental prices and availability.
"They’ve just started inquiring and now are securing properties for September and November."
They were looking for furnished properties for up to 18 months and paid "significantly" above the market rate, he said.
A similar situation occurred when Mataura Valley Milk opened in 2018.
"I see ongoing pressure on the rental market in terms of availability."
An upward trend in value would be likely and pressure on the market would continue, he said.
