Rental growth surges to double long-term average – CoreLogic
National rental growth has soared to 6.1%, nearly double the long-term average growth rate, according to property research firm CoreLogic.
According to CoreLogic’s November Housing Chart Pack, rental yield has hit its highest level since late 2020, edging back up to 3.2% from a trough period of 2.6% for much of 2022.
Auckland yields remain the lowest and Wellington is also under 3%.
CoreLogic NZ’s chief property economist Kelvin Davidson said “a number of factors” are contributing to the surge in rental growth including higher wages alongside a tightening supply and demand balance as migration soars in New Zealand.
“The recent quiet patch in purchasing activity by investor groups will have dampened rental supply at a time when soaring net migration is placing upwards pressure on demand,” Davidson said.
The tax loop holes for Landlords tom exploit will be reopened and with surging rentals, National will also give them the right to throw tenants out onto the street at a whim to encourage churn, price escalation and new homes to exploit migrant workers in.
What we urgently need is the Government to step in and fund large scale housing complexes with wrap around services, what we are going to get is an orgy of property speculation and grotesque profit taking from the Real Estate Pimps who bankrolled National and ACTs election campaign.
The social carnage our brutal monopolies can wage against the poor thanks to our under regulated capitalism is far larger than we have previously suspected…
Opponents of wealth taxes and housing and energy market reforms often complain those reforms would be too expensive for taxpayers, but not reducing our worst-in-the-world housing and energy costs is already costing taxpayers over $6.6 billion a year.
Solving the failures in our housing and electricity markets would reduce the taxpayer burden by that much, let alone unleashing massive improvements in public health, productivity and real wages.
A new official report quietly buried by the Labour Government in its final months in power identifies over 300,000 people are now living in housing and energy poverty so severe that they are unable to afford the power needed to stay warm in winter, have warm showers or cook their own food. Figures on the number of families who turn off their own power because they can’t afford to pre-pay aren’t even collected.
The report documented people who lived in homes without power because of bad credit records or their pre-pay plans had run out of money, forcing them and their children to sleep in cold, mouldy homes and cook food on fires outside.
This housing and energy poverty leads to thousands of unnecessary hospitalisations and hundreds of deaths from chest and skin infections, costing $1.14 billion each year in extra public health costs. That’s on top of income-related rent subsidies, accommodation supplements, First Home Buyers grants, progressive home ownership grants, emergency housing costs and winter energy payments totalling $5.5 billion per year.
The report recommends any new Government reform the electricity market to focus on improving affordability, rather than gentailer profits and dividends, along with monitoring disconnections from pre-pay power and forcing retailers to abide by a consumer care code, which is currently voluntary, along with increasing funding for insulating and retrofitting homes and appliances.
…the sheer scale of misery our system generates for the poorest amongst us should be a nationwide shame, but then again, so should the 600000 who need food banks each month, the 24 717 on the social housing wait list, the million spent per day spent kettling beneficiaries into unsafe Motels, the hundreds of thousands living in poverty, our suicide rte, the hundreds of thousands of domestic violence incidents that are eclipsed by ram raids.
Each should be a national shame, yet the idea of over 300 000 unable to use electricity and being forced to cook on open fires is shocking in a supposed first world country.
The cost of refusing to fix the under regulated capitalism that underpins property speculation is $6.6Billion per year, this is a rigged casino economy ruled by Real Estate Pimps who are mercilessly abusing their political power to generate legislation that empowers them while robbing renters.
There is a naked class war erupting in NZ and we don’t have the political vocabulary to express that dimension because the woke middle class activists have stolen all the oxygen in the room with their identity politics virtue signalling.
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I have been in the working class all my life, as a kid in Northland, in the South Auckland car industry for 20 years, unions, back to the Far North since the mid 90s. The point being it is a very different life than the upper 50%–poor wee lambs–have. In the North people are quite self sufficient and iwi have been capacity building at a great rate lately–but the austerity NActFirst want is going to hit hard.
The three clowns are going to lay into the bottom 50% (who own just 5% of the wealth) as soon as they have the legislative ability to do so, and some Government Departments are already bricking themselves and abandoning programmes they know will be binned.
The fact is car sleeping, rough sleeping, transience, theft for basic necessities, anarchy in certain street areas, preventable death, suicide, and mental illness are going to zoom up. Not to mention people just coping, living a crap life rather than an enjoyable one.
This is why I have long said we need to be on a war footing against the 1%ers, and the 9% enablers (as Martyn puts it) with a fighting class left central labour organisation, the reformation of a united NZ Communist Party, and a whole lot of community action and resource sharing. Occupy empty houses and commercial properties!
If communism had worked Russia, China, Cuba & North Korea would have been the most popular places for people to live over the last 70-odd years. It is pointless waiting for the churches to do the serving work they are called to (because most of them don’t care & the number of believers has substantially reduced) so it is up to regulated capitalism where people get an incentive to work but there are no freeloaders at the top that get a free ride at the moment.
The failure of the large ‘Communist’ states was largely a failure of totalitarianism. The Fabian socialism the global west enjoyed was tremendously successful – until Trojan horses like Douglas fubared it.
China is working fine and outperforming the US
I rented in Wellington and Sydney for 25 years so I feel the pain of todays renters. Now I live in the house I grew up in that I inherited from my late parents in a non-glamourous suburb so I am safe from the uncertainties of renting for now, but I sympathise with the working poor who are caught in the pincers of rising rents and inflation. Even as a homeowner there are rising rates and insurance costs to deal with so I hope that the incoming Nats and ACT government will improve NZ’s economy to provide some relief for all concerned.
Their policies already indicate they represent landlords.
-Restore mortgage interest deductibility for rental properties with a 60% deduction this financial year, 80% the following year, and 100% by 2025/26.
-Allow 90-day eviction notices for tenants on periodic agreements – without a reason.
-Return tenants’ notice period to 21 days and landlords’ to 42 if the tenant wished to move and landlord wished to sell property
And to ensure that most people can never afford a house so they keep renting:
-Moderate increases” to the minimum wage every year.
-90-day trials expanded to all businesses.
-Moderate increases” to the minimum wage every year.
-90-day trials expanded to all businesses.
-Repealing the Fair Pay Agreement by Christmas.
-Health and safety regulation reform.
-Increase cap for regional seasonal workers.
-Drop median wage requirements for skilled migrant visa.
-The new Government will focus the Reserve Bank’s remit solely on price stability.
* It will drop its requirement to support maximum sustainable employment.
All policies to drive down wages and standards/conditions in the workplace and replace kiwi’s with migrant workers. Increased unemployment is also necessary to achieve this, hence the new RB remit.
Where have I seen this again…..Oh yes, the 9 years of John Key!!
You are quite wrong about the Churches not caring. Yes their numbers have gone down, but they are doing a huge amount to help people in the community. Church social services carry out all sorts of programmes for those in need, and then there are many local programmes such as playgroups, mainly music, messy church and others that help with social cohesion for families.
You may be thinking of some Churches that concentrate on political identity rather than following Jesus’ teaching of healing and helping, but I have personally seen many people helped by work carried out by local Churches, as well as by national social work arms of the Church.
Of course we need government moderation of extreme capitalism, to help people cope.
Do not expect the truth to get in the way of criticism of religion or this new government
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