Tauranga becoming unaffordable

Western Bay of Plenty has become one of the most unaffordable places to live, second only to Auckland.

Tauranga's increasing popularity making it a 'victim of its own success'.

The stretched rental market is now hitting full time workers with many struggling to find a home, forced to live in holiday parks and garages.

"Rotorua, Taupo and at the moment even Napier as well - out of town is the only option to get a place," Tari Morgan told media about Bay of Plenty's exploding housing market.

Silver Birch Holiday Park manager Tony Makai added he has guests who have stayed for as long as five months, after they were originally only booked for a couple of weeks.

Eves Real Estate chief executive Ross Stanway told media Auckland buyers want a stake in the Tauranga market as investors or because the return on investment is better than Auckland.

The city is classed as "severely unaffordable" by the International Housing Affordability Survey.

Tauranga's council is only too aware of the increasing problem.

"In many ways we've become the victim of our success, but we're working hard to provide the planning regulations and the freedom to free up land for housing," deputy mayor Kelvin Clout says.

"The other thing that we're doing is reviewing our planning and regulations so that we can enable intensification of land so we're allowing smaller houses on smaller sections."

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6 comments

When oh When

Posted on 21-05-2016 17:50 | By Merlin

When oh When is this Government going to tackle the Investors Overseas and local ones with are distorting the housing market for average New Zealanders as well as the ever increasing immigrant numbers without a band aid solution.This will be the PM's legacy.It is causing rents and house prices to soar.The increased housing supply program is years down the track.


Unaffordable Tauranga alright!

Posted on 21-05-2016 20:24 | By Linaire

Something needs to change here. There are far too many people living on the streets, and homeless. Rather than opening up more and more land for housing, why doesn't the council put the roads right FIRST? Everything seems back to front to me .. All our roads are blocked at rush hour. Tauranga is turning into a small unaffordable, congested mini-Auckland!


A word to council.

Posted on 22-05-2016 00:17 | By Captain Hottie

Look at the mess that Auckland has made with dragging its feet with regards to new housing, infrastructure, transport etc. Don't be like Auckland. Get stuck in before we get too many ex-Auckland NIMBYs settling here and whining.


A capital gains tax

Posted on 22-05-2016 10:08 | By earlybird

is probably the only thing that will have any effect on the price explosion - but then remember that lots of MP's have investment properties so don't expect changes anytime soon as they're busy looking after their own interests. A case of I'm alright Jack so screw you.


unaffordable housing

Posted on 24-05-2016 10:17 | By phoenix

It is plain to see that Mr Bob Clarkson had more vision in anticipating this situation to arise than the TGA and western bay of plenty district council combined,with his project at Tauriko.What a shame that personalities and self interest stopped this proceeding,instead of the mount minden sub-division.By now many families would have been able to purchase affordable homes,in Mr.Clarksons developement,easing the problem they now face.


.

Posted on 28-05-2016 08:23 | By whatsinaname

Why does everyone have to come to tauranga. why not go to the smaller towns and make them big towns again.Tokoroa, Pretend we have gone back 100 years. our ancestors started with nothing and built these places up. . the mindset of somepeople.What draws people to these cities. I am making the move to one of the smaller towns next year. Pleased to leave the rat race of tauranga..etc


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