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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