Prior to the pandemic:
Before the pandemic, there was a surge in short-term rental properties in the Auckland market. When the pandemic hit, many short-term rental landlords returned to long-term rentals, and Auckland was where short-term supply fell the most.
What's happening now?
House and apartment sales volumes are currently also dropping due to a variety of reasons, such as affordability, inflation, access to finance and fears of a recession as per the September REINZ report. This has resulted in a large oversupply of long-term rentals, making it a renters market and contributing to a reduction in long-term rental rates.
At the same time, international guests arriving into New Zealand are increasing significantly in comparison to 2021 levels and slowly getting closer to 2019 levels (currently 38% behind), according to the Ministry of Business, Innovation and Employment's (MBIE) Tourism Evidence and Insights Centre.
Occupancy, however, is recovering even faster! This is due to the supply of short-term rentals not being quite there yet as according to MBIE's Accommodation Data Programme, supply has been sitting between 60% and 70% in the past couple of months, a trend that may slow down in November, but will recover for summer from December onwards.
Why switch to short-term rental?
With increasing demand, a supply shortage and a less attractive prospect in the long-term sector, short-term rentals are a promising and exciting sector to dabble in. Here at the Urban Butler, we can ensure you make the most of the current climate, allowing you to enjoy your property occasionally while making large rental returns with a fraction of the wear and tear.
Lastly, if you would like to discuss your property and how partnering with The Urban Butler works for your situation, we can help! Get in contact with us for a free consultation or if you have any questions regarding our full end-to-end short-term property management services by clicking here.
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