The latest report shows Wellington has a long way to go if we want to satisfy the growing population demand for rental housing in our capital.
An independent body of experts on the Mayor’s Housing Force have forecasted that the central city's population (which grew 100% between 2001 and 2013) is expected to increase by another 84%, from 18,019 residents in 2013 to 33,150 in 2043. Many of these newcomers to Wellington will be prospective tenants.
Recently, the Government has confirmed plans to build 145 one bedroom social housing units across Wellington to help ease the housing shortage. However, considering the above figures suggest a growth of 504 people per year, we don’t expect the 145 units to significantly influence the equilibrium, meaning tenant demand for additional city dwellings will remain high. Given the scarcity of land in the city, we think apartment developers will be kept busy for decades to come.