We know what is squeezing the life out of the rental market

[Learning]

And a good part of that gap would be much reduced for households in a stable relationship and those that did not have children until they could house and feed them decently.

With many businesses giving annual pay rises as high as 2% but more commonly 0%, rents increasing $20-$50/wk every six months, food, transport, energy, etc all going up 2%+ per year. For some that wait will be a never ending one. Yes they could, in some cases, move back in with their parents but not many 30 year olds want to do that for some reason.

[Perry]

Just wait till the flow-on effects of a petrol tax hike start to bite.

[eri]

compared to overseas

all the tools are here to get ahead

but yes

it can be hard

very hard

and take years + years

[Perry]

Rents rise around the country as cost crunch goes on landlords
16 April 2018

Across the country, rental prices were up 6.1 per cent to $433 per week. That's about twice the annual increase recorded in March 2017 and March 2016. "There have been so many cost and regulatory increases over the last few years that it isn't a surprise that rental prices are increasing as they are," NZPIF executive officer Andrew King said. "Unfortunately the situation looks likely to continue." Gareth Kiernan, of forecasting firm Infometrics, agreed.

But economist Shaumbeel Eaqub said how much demand there was for rental properties, the number of properties available for rent, and how much people could pay, were much more important factors than landlord costs. "It's not as if landlords have that pricing power, it's a very fragmented market. It's more around what people are able to pay and the demand for that particular location. "In Wellington rent went up a lot not because landlords' costs went up but because of the squeeze caused by the earthquakes, and an increase in student numbers."

For once, I agree with him.

[Don't believe the Hype]

LL don't individually have the pricing power as the market is so fragmented. They do however understand that these compliance costs are being forced on every one of us so they understand that their fellow landlords will also be keen to raise rents if at all possible so are emboldened to do so. It is also true that only a small fraction of all rentals are available for rent at any one time so all you need is one or two landlords in an area to start raising the price for their currently listed rentals to then be followed at that new market level by the landlords that follow them to market.

When looking for a rental you compare the properties currently on the market for rent, not what the neighbours to the property listed pay for their property that they rented 6 months or 12 months prior.

I also find it comical the claim that people will only pay what they can afford, rents can't possibly go up.

Well you could say that for anything - electricity, petrol etc. the only variance with property is that (for example) if the rent goes from $350/wk which you can afford for a 4br house to $450/wk for a 4 br house you have the ability to stay in the same location but move into a 3br house to maintain the weekly rent cost OR you can move to a different suburb that allows you to live in a 4br house for $350/wk.

[Nice]

I think Mr Eaqub is confusing the market with what he would like to see as being good for tenants.

'The Market' also affects as an example the price of petrol. The oil companies charge as much as they think they can get away with to improve their competitive international margins. As we are currently forced to buy petrol from the existing suppliers, they can then charge whatever they like, and they do. Their costs are only relevant when they can prove they are increasing, meaning they can justify a further increase. That is the market, and we continue to buy petrol.

How is the rental market any different ?

[Perry]

Another media item, along the same lines.

One Auckland rental property attracted 116 inquiries from potential tenants in the first two days it appeared on Trade Me.

Rent controls, anyone?

[flyernzl]

I think they might be imminent.

[artemis]

.......

Rent controls, anyone?

Back in March, Marama Davidson now Greens co-leader, said on The Nation rent controls and renter rights are her top priority. So we can expect plenty of behind the scenes positioning.

[Don't believe the Hype]

Back in March, Marama Davidson now Greens co-leader, said on The Nation rent controls and renter rights are her top priority. So we can expect plenty of behind the scenes positioning.

The trick with rent controls is to lobby like mad to make sure your house/street/location isn't part of the controlled group. The reason for this is that the remaining houses that aren't rent controlled see massive massive rent increases. See what happened in san fran for example

[Perry]

The problem may be self-fixing.

The unintended consequences may force the W'gton woodenheads to have a rethink.

The residential rental pool shrinks; rents rise - as do the howls of anguish.

Then PIs can rightly say:

I told you so.

[Davo36]

And the papers love it all. They scream when 'landlords are creaming it' and they scream when 'landlords are making no money'.

The crisis crisis as per the other thread.

[Perry]

Another Prediction?

Student numbers demanding more modern accommodation
22 April 2018

The archetypal grotty student flat may never disappear entirely but it's becoming a more endangered species. Demand for student rental accommodation is strong in all centres and evident by rising rents - some providers have increased 2018 room rates by 5 per cent, well above inflation. Whillans Realty Group analyst Brendan Keenan is predicting a development wave of new purpose-built student accommodation, partly be fuelled by the Government's new free education for first-year tertiary students.

"A new class of private providers and investors has stepped in to capitalise on this - they're enticing students with private ensuites, flatscreen TVs, shared study space, rooftop barbecue areas and gyms." Some developers have gone as far as offering 24/7 concierge services, on-site cinemas, free WiFi, and even private bars decked out in the latest designer furniture.

Any of you forumites in this hallowed "new class of private providers and investors?"

Best of luck to you, if you are!

[eri]

pretty much half? my tenants are students

most of the rest are on working holiday + short stay work visas

the rent's pretty much always on time even if most of the boys and some of the girls never seem to do any cleaning, requiring huge cleaning once a year when they move out

the 3 worst, most expensive tenants, needing TT action and once weeks of cleaning

didn't need visas...

what the article doesn't tell you

is that to be affordable

these new accom blocks won't have to conform to new building regs for permanent accom with individual kitchens and bathrooms

can't see 30m2 floor size + 5m2 deck being the minimum

at least not in downtown, ak, welly + chch

maybe palmy

so senior and post grad students will pretty much prefer well located, newish, small apartments with their own kitchens and bathrooms

that they can share for less than the purpose built blocks

the ones that kiwis keep telling us they don't want

[Perry]

Interesting Tale

Keeping a roof over my kids' heads is impossible
23 April 2018

It's not just mums with six kids to six different dads who are on the streets. It's not just non-working parents who struggle. It's not only addicts, or people with huge amounts of debt who find themselves with nowhere to live. I'm a mum of two. I work, I pay my rent, I clean the house and I don't smoke, don't party and don't own pets.

Yes, I do have two children, which I realise is my choice. I make sure they don't miss out on the basics: I pay my bills, they're fed and clothed. I'll also point out that when I had them, housing was affordable and findable - I didn't see a crisis looming.

Who's to blame if there's a shortage of dwellings?