Room for professionals in rental market
Thursday 1 July 2004
What's wrong with this picture?
By The LandlordOne of the biggest industries around, providing an essential and costly service to more than a quarter of all households, is a cottage industry.
Tens of billions of dollars are invested in it, but it operates like something from the pre-industrial, village smithy era.
It is, of course, the residential rental property market.
We are used to thinking of it not as a service industry or as a lot of small businesses, but as an investment option, an asset class, or as part of the real estate market.
But however you look at it, it represents a rapidly growing sector of the economy.
Inland Revenue says around 165,000 people declared income from rents last year, nearly twice as many as 10 years ago.
This is in the context of steadily declining rates of home ownership. The 2001 census found 68 per cent of households were owner-occupied, down from 74 per cent in 1991.
Read More - Opens in a new window
Commenting is closed
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.