There’s no doubt about it, we’re in a tough rental market! Spring in the Hutt Valley has been a very different picture than any other time in my 10 years in the industry.
With so much stock, we have a large oversupply which is pushing rents down at a time when rates, insurance and mortgage interest rates have been rising. Thankfully we’re starting to see a decrease in the OCR and interest rates, however this change will take time to trickle down through the funnel to a point where landlords are feeling a bit more comfortable. The long and short of it is – there’s a bit more pain to come.
Post Covid, the Hutt Valley was humming with demand outweighing supply, prices had increased to record levels and Upper Hutt was in number one spot for the highest rental prices in the region. At one point there were only 26 rentals available in the entire Upper Hutt area.
Now, the pendulum has swung back the other way and as at 15 October 2024 the stats show a different picture;
Upper Hutt has 91 available properties
- 8 – Studio or 1 bedroom
- 31 – 2 bedrooms
- 38 – 3 bedrooms
- 13 – 4 bedrooms
- 1 – 5+ bedrooms
Lower Hutt has 277 available properties
- 42 – Studio or 1 bedroom
- 93 – 2 bedrooms
- 108 – 3 bedrooms
- 28 – 4 bedrooms
- 6 – 5+ bedrooms
As you can see, if you’re marketing your 2 or 3 bedroom property for rent, it needs to be competitive or offer something that others don’t.
If you’ve had long term tenants who have given notice, you’re likely to find that the rent price is now less than what your tenants were paying, a hard pill to swallow if your costs of owning the property have risen.
However, a good way to look at it is this – would you rather lose $20-$50 a week and have the property rented sooner, or would you rather lose hundreds per week and have your property empty for a month, or more?
The right tenant may eventually come along at a higher price, but how long is too long for you to go without rent?
If you’re stuck or finding it difficult to deal with the no-shows, empty viewing spots and just the general slump in the market, and you’re after some advice, get in touch with us today, we’re here to help.
