The First National Group reports an increase in demand for rental properties during the final three months of 2009.
First National manages more than 6500 rental properties on behalf of landlords and is one of the largest real estate groups in the country.
It says more than half of its offices don't have enough properties to meet demand.
General manager John Stewart says only 3% of the company's rental properties remain vacant, down from about 5% in October.
He says houses with four or more bedrooms are the most sought-after and two bedroom houses are the least.
Areas with the highest demand include parts of Auckland, Wellington and Christchurch, and coastal centres like Waihi and Nelson.
