Listing Shortage Looming in Wellington

Total vacant home listings are at the lowest level since March 2010, and the trend is strongly down. Is this the beginning of a shortage in properties available for households due to inadequate construction levels? Rental listings are now at 2.5% of rented properties, compared with Auckland's 2.3%. Seasonal changes are hard to spot as the numbers of rentals are dropping at such a fast rate. Selling listings are covered by the media separately, but the comparison is interesting, with both rental and selling listings falling at extreme rates, the demand from new household formation will quickly use up supply, pushing prices up in both rentals and sales.

Jonette 2011