The Ministry of Business, Innovation and Employment has issued a report on housing in Christchurch and found that shortage of accommodation consequent to the earthquakes is pushing up rental prices beyond those faced in Auckland. The highest increases have been in St Albans, Merivale and Papanui with average increases of 39 per cent.
While Aucklanders have only faced moderate increases of around 13 per cent on average for that same period, rents in Christchurch have gone up an average of 31 per cent. The greater part of the increase was faced in 2012, which tallies with anecdotal reports of some rents going up twice in the same year. Christchurch rental prices have been going up sharper than house prices and those increases have been quicker. Even the worst quake-affected eastern suburbs are facing significant increases in rents.
It is estimated that Christchurch housing availability has shrunk by more than 6 per cent. The department has estimated a reduction or shortfall of around 11,500 in the housing stock in the city. This includes houses in the red zone and uninhabitable houses elsewhere. Nearly 8000 houses are in the residential red zones and about to be demolished if they haven’t already gone. Another 9000 will soon require significant repairs or rebuilds necessitating the residents look for temporary accommodation.
Temporary accommodation built in suburban parks after CERA came on the scene now has waiting lists and more temporary homes are likely to be built. Holiday parks are filling up with construction workers, those on lower incomes and people having to get out of their houses for repairs at very short notice (some insurance companies are not good at planning ahead/notifying householders).
The housing crisis is impacting particularly on those with lower incomes. The availability of rents under $300 has dropped significantly with the loss through quake damage (and after two years’ failure to replace) of affordable social housing. Some people are ending up in holiday parks, sharing households with others and moving between households, or living in cars.
Personal comment: This is a report by a Government Department but it remains to be seen whether the Government takes action to ease the pressure on rents in Christchurch. Otherwise we will be dealing with a far-reaching social tsunami (mental health and physical health problems) of the earthquake aftermath for many decades to come.
You can read more in the report and see the pretty graphs that accompany the document:
www.dbh.govt.nz/UserFiles/File/Publications/Sector/pdf/christchurch-housing-report.pdf
