Property investors are pulling properties from Airbnb to offer as long-term rentals instead.

New Zealand's tourism industry has come to a standstill as the country responds to the spread of coronavirus.

A spokeswoman for Trade Me said usually 6 per cent of Trade Me rental listings were offered furnished. But since March 14, when the self-isolation rules were first announced, that number had increased to 11 per cent.

"This puts the total number of fully furnished rental listings at double what they were at the time last year," she said.

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"With the pressures we're seeing on tourism it does suggest that some short-term rentals are being moved into the long-term rental market as investment property owners seek to maintain income - we'll be keeping an eye on this as it develops."

Economist Benje Patterson said huge number of Airbnb units had been put back into the rental market in Queenstown in particular.

"They are being advertised extensively across Facebook community groups at significantly discounted rents. Most come furnished and are often on six-month leases so that landlords have the option of putting the unit back on Airbnb if conditions have normalised again ahead of next summer," he said.

HANNAH PETERS/GETTY Economist Benje Patterson said huge number of Airbnb units had been put back into the rental market in Queenstown in particular.

"There are also large numbers of houses becoming available as people who have lost their jobs have moved out of rentals or have left New Zealand to head back to their home countries. I have seen reports of landlords throwing their hands up in the air and letting people break leases, rather than being stuck with someone who can't pay rent. In other cases, there is evidence that tenants have done a runner."

He said it was worrying because a big drop in yields for investors would push some to sell.

"A flood of forced sales, at a time when confidence to purchase a home is low, could cause severe instability to pricing. There is likely to be moves by the government over the next week or two to implement mortgage relief in order to prevent such forced sales. The last thing the government wants is for a mass rush to the exit push other homeowners into negative equity and compromise financial stability in anyway."

But he said the effects would be inconsistent across the country.

"The effects will be greatest in tourism hotspots, such as Queenstown, Mackenzie District, and Rotorua, where the economic consequences have been most sharp and sudden. Provincial areas, with a large proportion of dairying and sheep and beef, are largely insulated from the worst economic consequences at present and won't be seeing the same shifts in the rental markets."