Rising rents next on politicians' agenda
Friday 25 January 2013
Rising rents are likely to become as much of a political issue as unaffordable house prices, one commentator says.
Auckland rents are rising faster than both wages and inflation, according to research.
The median rent for a three-bedroom home in the country’s biggest city has risen 14% over the past three years, from $438 per week to $500, according to Crockers.
Inflation for that period was 8.7% and the median weekly wage rise was 9.7%.
All 30 Auckland suburbs had increases of more than 9% each for two and three-bedroom homes.
The only decreases over the years were a 5% drop in rent for a four-bedroom home in Devonport.
Commentator Olly Newland said he predicted the rise in rents nearly two years ago, brought on by the tightening house market and the removal of depreciation tax breaks.
“The main reason of course is that there is a general shortage of rentals and no matter how low interest rates go, investors face higher and higher costs besides the lost depreciation e.g insurance premiums. This will become a political issue soon enough along with the related issue of rising house prices.”
Comments from our readers
No comments yet
Sign In / Register to add your comment
More evidence of the “Auckland effect” comes in the latest Real Estate Institute of NZ data which shows that, in July, Auckland’s median price fell by 2.6%, while the national median price rose by 3.3%.
New, more targeted regulations for earthquake-prone buildings are a win for commercial property owners and businesses.
The Reserve Bank has cut the OCR to 3.25% today. Here is what the governor Graeme Wheeler said.