WRE Insights

What's been the effect of Covid-19 on the Hamilton rental market?

What's been the effect of Covid-19 on the Hamilton rental market?

Let's kick off with a look at vacancies. Currently, we are advertising 42 properties for rent. Those 42 are either vacant now or vacating soon. Just prior to Lockdown we were advertising 36 properties, so there has not been much change there.

Drilling down further, the number of properties we have sitting vacant stands at just 8, which on our portfolio translates to a vacancy rate of 0.7%. That is a very low vacancy rate, even during ‘normal’ times.

The number of applicants per property also remains at healthy/normal levels – averaging over 15 per listing. Sadly, the demand/supply imbalance remains.

To date, our Property Managers have kept arrears contained and the number of rent reductions granted by landlords can be counted on one hand.

Many commentators predicted a slew of tenants falling into arrears, forcing Landlords into negative cashflow and tempting some to sell their rental properties. However, our proprietary data indicates that since coming out of Lockdown we have actually seen a fall in the number of rental properties being put up for sale by our Landlords.

So, it’s a case of “so far so good” for the Hamilton rental market. The government’s wage subsidies and mortgage deferral schemes have played their part, but so has Hamilton’s economic mix. Having an economy rooted in New Zealand’s primary industries has been a great help to our town and region.

If you would like to discuss the local market further, or hear more about how we keep arrears contained and vacancy days at such low levels, then please reach out to Michelle on 021 0832 1516 / michelle@wre.co.nz or fill out the form below and we will give you a call back!