Rental housing crisis impedes Christchurch recovery

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Rental housing crisis impedes Christchurch recovery

The rebuilding of many severely damaged Christchurch homes is in danger of being delayed by a complete dearth of short-term rental accommodation.

Real estate agents who manage 11,500 Christchurch residential rental properties say there is virtually nothing available.

Tony McPherson, the Christchurch-based Director of the Real Estate Institute says two thirds of those surveyed last week by the Institute need to re-locate tenants so repairs to damaged homes can be carried out.

“Most are finding it either ‘impossible’ or ‘very difficult’ to find alternative accommodation for tenants and home-owners who need a short-term place to stay.”

“If people cannot move out, it creates very stressful living conditions as building crews try to work around them. In many cases it is impossible to do the work with people still resident and when residents do tough it out, it causes delay and adds to the cost.”

“Typically people need to move out for 3-4 weeks and beyond while major repairs are completed.”

Mr McPherson says the crisis in rental accommodation is deepening as the recovery phase starts to head towards rebuilding.

“There is huge pressure on rental accommodation in the city from people who have been forced out of the red zone, the large short-term workforce in the city there to assist with the recovery as well as the normal seasonal demand from tertiary students. Motels and other accommodation houses are full restricting accommodation for tourists and squeezing incomes of those reliant on the tourism industry.”

Mr McPherson says his understanding was that the temporary accommodation made available by the government was fully occupied.

“There is a need for a circuit breaker if the rebuild of homes is to be carried out efficiently. Without it the rebuild is in jeopardy causing further frustration, delay and unnecessary stress on Christchurch people who now want to get on with their lives.”

A greater allocation of short-term rental accommodation by the Earthquake Commission or the Department of Building and Housing would assist. Alternatively, finding solutions for the temporary workers who are moving into Christchurch would relieve the pressure.”

The stock of rental accommodation has shrunk in the last 18 months as houses have been red-zoned re-occupied by owners or sold.

“Rebuilding work could be further accelerated if those who have to move out containers are provided to store their furniture and other possessions while properties are rebuilt.”

The survey of Real Estate Institute members found:
§ 66% need to relocate tenants for repair work
§ 41% are finding it “impossible” to relocate tenants and either tenants are needing to remain in situ (35%) or are needing to vacate without being relocated (6%). A further 44% report finding it extremely difficult to relocate tenants
§ Agents surveyed manage approximately 11,500 residential rental properties in Christchurch

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