Students priced out of digs

[spurner]

Students are having trouble finding affordable accommodation in Auckland because recession-hit families are moving into rental properties.

The residential team leader for Auckland University of Technology's Wellesley Student Apartments, Treena-Jay Tracey, said there has been an increase in the number of students trying to find somewhere to live.

Third-year AUT student Hannah Bartlett said her only option was to live in a hostel, having found it impossible to find a house to rent in Auckland.

"I've looked at more than 30 houses. Sometimes agents said we would be suitable tenants, but at the end of the day they prefer families over students."

Salvation Army community ministries spokesman Gerry Walker said the recession was affecting working and non-working families.

Authorities should be working together to make sure everyone had somewhere to live, he said.

Housing Minister Phil Heatley said the problem was likely to resolve itself as more properties came on to the rental market.

But estate agency Harcourt's branch manager Dennis Tana said the rising demand for rental accommodation meant there were more potential tenants than available houses.

"Mortgagee sales are on the rise because people can't afford to own their own home, while others are selling their homes to keep their business ventures afloat," he said.

NZ Herald article.

[spurner]

How and when will more properties come onto the market? Some would argue there are many more rentals available right now already then there should be, due to homeowners who can't sell reverting to renting them out. Even as supply increases, demand is going to increase alongside.

Does the Minister not realise that demand exceeds supply, and supply is only diminishing further as the economic crisis worsens, and red tape costs spiral upwards.

He sounds stupid, but in fairness, maybe he's just limited as to what he can say.

Housing Minister Phil Heatley said the problem was likely to resolve itself as more properties came on to the rental market.

[Keithw]

So what is the issue here ?

that students can't get cheap flats ? Should they be automatically entitled to a cheap flat ?

That high rents force a higher number of tenants per place ?
Apart from higher wear & tear on the landlords building, what significant down side is there to that ?

that students will have to live further out from the CBD, in cheaper areas ?
Meaning more cars, motorbikes, scooters on the road, or more passengers on the buses or trains.
or the universities, techs etc need to move to outlying areas, like Albany, Manukau etc which they have already done

That the CBD apartments end up with a higher proportion of working families/ couples who are likely to stay much longer than the average churn rate of 8 - 9 months for students ?

Unless you are a socialistic nanny state greenie, What is the problem ?

[Baron Silas Greenback]

I dont think it is about the current problem of a few students not getting a house. It is simply the first indicator of a shortage in housing stock.

[spurner]

Good point.

How about an environment where govt increases red tape and compliance costs, discusses extra taxation on property investments, have well publicised IRD crackdowns on property investments, have a RB governor advise people not to invest in property, swing the RTA even further towards tenants, encourage tenancy advocates, and the public constantly chastises landlords for being greedy and providing inferior accommodation.

Surely all these initiatives we have been seeing over the past few years will lead to a increase in supply?!

[outspoken]

I have to clean the dripping sarcasm off my puter screen Spurner lol

[spurner]

I just couldn't help myself!