23 November 2010
An additional 100,000 rental properties will be required for Auckland at a cost of $31.1 billion over the next 20 years,and population growth will fuel demand for rental accommodation, the Centre for Housing Research’s says in its Auckland Housing Market Assessment.
The report assesses the current and future housing demand for the city with predictions that population growth, particularly from older, smaller and rental households, will drive demand for additional property. “Demand for rentals will increase much faster than demand from owner-occupiers. Between 2006 and 2026, Auckland will need an additional 95,980 private rental dwellings,” the report said.
Over that time the population of Auckland is expected to increase by almost 40%. Households aged 65-plus are expected to increase by 78.8%, accounting for 32.7% of total growth in household numbers. Couple-only and single person households are expected to increase by 33% and 29.25% respectively.
Another growing trend highlighted by the report will be an increase in financially stressed renter households – financially stressed being households that spend more than 30% of their total gross income on housing costs. Renter households, older households and single-person households are the most vulnerable to increased financial stress and the report says that over the two decades the number of financially stressed renter households is forecast to increase by 66.6%.
Demand for rental accommodation is forecast to increase at a “significantly” faster rate than demand from owner/occupiers.