Housing and poverty advocates are drawing attention to the urgent need for more housing in New Zealand, as landlords take advantage of the low supply
Housing and poverty advocates are drawing attention to the urgent need for more housing in New Zealand, as landlords take advantage of the low supply to charge higher rents. A report by the Treasury, the Reserve Bank, and the Ministry of Housing and Urban Development emphasized the link between tenants’ wages and rising rental costs. With low supply and high demand, landlords are setting rent prices at the maximum amount tenants can pay, resulting in a situation where any pay increases are immediately offset by increased rental costs. The report also indicated that rent prices were increasing at a faster rate than inflation, suggesting that landlords are benefiting from the lack of housing supply. Some advocates are calling for tighter tenancy laws to address the power imbalance between landlords and tenants.
