New Zealand among the most expensive places to rent in the world
As rents have pushed up in recent years on the back of high migration, New Zealand’s rental market has achieved a record that tenants would rather not set, and global distinction the country would probably prefer not to achieve.
Kelvin Davidson, chief economist at property research firm Corelogic, said average rent as a share of average household income had reached a record high of 22%.
But he said that could conceal the full extent of the impact on tenants.
“The average renter might be paying the average rent, but they might not have the average income, so for them rent will be absorbing a much higher share of their budgets.
“The 22% is not the most important point. Whatever it is, It’s at a record high. Renting is very expensive.”
Meanwhile, an OECD report released in April said that New Zealand was among the most expensive places to rent in the world, on a number of measures.
More than 25% of disposable income was going on rent for renting households, it calculated, ninth in the world.
The country was one of only eight in which median housing costs used up more than 40% of disposable income for the lowest-income tenants.
New Zealand also had a big difference by international standards in the housing cost burden for the lowest-income tenants versus higher-income earners.
“In Colombia, Chile, Finland, Israel, New Zealand, more than half of tenants in the private rental market are overburdened by housing costs. By contrast, in many Central and Eastern European countries, less than 20% of tenants are overburdened by housing costs,” the OECD report said.
This is literally a Government of Landlords, for Landlords in the interests of Landlords.
Real Estate Pimps donated millions to National and in return National have reopened tax loopholes and have given landlords the right to kick tenants for no reason.
There is a class war on renters but we don’t have the political vocabulary to articulate it.
Let’s remind ourselves just how vested the Landlord class is..
…there is an unspoken promise between the neoliberal State and the untaxed capital gains private landlord class that the neoliberal State never builds enough State Houses to alleviate housing desperation so that the untaxed capital gains private landlord class can exploit that housing desperation ON TOP OF getting a $1.5Billion annual subsidy in the form of the Accommodation Allowance EVERY SINGLE YEAR!
We are not interested in solutions to poverty and inequality, we only believe in making any welfare as difficult and toxic as possible so the poor give up turning to the State in the first place.
We have short changed our own people in terms of housing and safety nets so we can feel superior and smug in the tiny lounge rooms of our lonely bitterness on these shaky isles.
We would prefer harm to our fellow citizen just in case we don’t get something they might.
30 years of downward deunionised wage pressure has created a working people who are so poorly paid they look at welfare with envy.
Meanwhile the megalandlords and property speculators laugh all the way to the bank as homeownership continues to fall.
Cant see how 600 per week is only 20% of the renters income .If some one is earning $30 per hour that is 50% of their income before tax .
So we will see that all the tax breaks won’t reduce rents at all. Just a big con job for a bunch free loading a’holes.
Rent is directly related to cost of a house, if they ever get out of sync, the market fixes it.
Hence, how to reduce average cost of a house? Reduce demand vs increase supply.
Rents will not go down anytime soon after huge price increases of 2021/22.
Rather than house prices driving rent, it’s more related to the income of tenants and, importantly – how much landlords reckon they can get away with charging.
The unscrupulous will try to get blood out of a stone.
Yes, you are right, Benny forgot to factor in greed, the market, the false narrative that it is, won’t fix greed.
Crazy levels of immigration over the last 30 years at least are the root cause of our housing problems.
The absence of any requirement to contribute to infrastructure is one of the main causes of related cost blowouts.
You’d think this would be a major concern for most political parties rather than a thing to be swept quietly under the carpet.
Immigration created the demand for housing and stopped wages increasing so you can see why it was continued. The system is broken and anyone hoping for a fix from the politicians will be disappointed.
Rents went up due to Labour taking away the tax break as it effected if the home was making money or needed a top up .Once up it is hard to come down .The only way they will come down is if there is an over supply of homes to rent which is unlikely any time soon. National have made a start by allowing more competition in building materials which will bring the cost to build down but with increase in population this will be swallowed up.
Fucken bullshit Trevor, rents went up because not enough houses got built under national, they sold state houses and land on a bullshit whim, and they brought in thousands of immigrants to dumb down labour costs for the crybaby business owners many now getting there come up ins. Its supply and demand and greed. Rents continue to go up for the same reasons.
God you talk shit Trevor
So all that donor money was to force rent and real estate price down? Good one Trev
It would be an interesting country if you 3 were in charge I wonder how long it would stay solvent.
Trevor and his lies-how much did you donate to NACT? Immigration is at the root of the problem and remember when John Key allowed chinese buyers (who weren’t NZ citizens and lived in China) to buy up large in NZ? The real estate pimps were actually advertising property in China, Singapore etc. Of course NACT wanted to do this again but NZ First got in the way.
There is an empty house around the corner from where I live, recently a sign went up saying ‘FOR RENT’ $825 a week. So far, no takers and it doesn’t surprise me, this house has been siting empty for over a year before whoever owns it put it up for rent. I’m hoping no one rents it, fuck them greedy bastards.
For as long as the ignorant keep voting in landlord politicians (97% of all politicians benefit from the Accom Suppl through trusts) the housing crisis won’t stop in NZ. It can be fixed by three measures.
1. Full CGT on all property except the family home and one other, with absolutely zero tax breaks permitted. Penalty for infringement – confiscation of property without compensation.
2. Compulsory limits on rent at 25% of income (nett) with income inquries forbidden under same confiscation penalty.
3. No owner of residential property permitted to stand for parliament until rental properties sold.
Until this happens, NZ can have as much housing problems as it voted for. And no amount of breast beating will change that.
The renter class (Bankers, financiers and property speculators) have us by the balls.
We need a 10 year immigration moratorium rahui.
For a housing and infrastructure build catch up.
For the removal of wage suppression by immigration so real wages increase and fix housing affordability.
For increased productivity if you employers can’t get immigrants they will make productivity enhancing capital investment.
At the end of 10 years gdp per capita will have risen.
Pay the accomodation supplement direct to landlords so they will be ones deemed bludgers and when govt spending is cut rents will be directly reduced.
Accomodation supplement = bludger landlords.
yep accomodation subsidy and no tax double dip of welfare for landlords .Every time wages or subsidies increase rents go up as well .Gouge gouge gouge .
Trev your right on most things. But sorry the rents need Switzerland type regulations. So basically rents get reduced each year. So renters can save a deposit.
What u have now is over priced rents for s#hit house s.
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