Politics 🗳️ NZ Politics

[defensivebomb]

Also, the rental price is heavily linked to wages.

https://www.rbnz.govt.nz/hub/news/2023/08/what-drives-rents-in-new-zealand

Rents are driven by supply and demand

Those are the only two drivers

Sure, there are indirect factors driving rents, but ultimately those factors influence supply and demand

Rents aren’t cost plus, or anything else. Landlords have a commodity and take this to the market

 

[Bay39er]

Rents are driven by supply and demand

Those are the only two drivers

Sure, there are indirect factors driving rents, but ultimately those factors influence supply and demand

Rents aren’t cost plus, or anything else. Landlords have a commodity and take this to the market

Might be interesting to see how immigration has tracked over the same period

 

[MaybeTop8]

Rents are driven by supply and demand

Those are the only two drivers

Sure, there are indirect factors driving rents, but ultimately those factors influence supply and demand

Rents aren’t cost plus, or anything else. Landlords have a commodity and take this to the market

I can think of greed. That's a driver.

 

[MaybeTop8]

What we had.

 

[wizard of Tauranga]

Rents are driven by supply and demand

Those are the only two drivers

Sure, there are indirect factors driving rents, but ultimately those factors influence supply and demand

Rents aren’t cost plus, or anything else. Landlords have a commodity and take this to the market

But if you have costs like interest deductibility rules; tenant first rules, significant healthy homes cost, etc that make people not want to be landlords anymore (keep empty or switch to air B&B) then that reduces supply so those changes can push up rent.

Also if you have costs that affect all landlords equally (skyrocketing rates; insurance; mortgage) then if landlords react as a group the price can change without supply and demand as the tenants can’t simply switch to a cheaper option. Ie if costs rise by inflation generally rents will rise by inflation.

 

[MaybeTop8]

‘Didn’t look good’: Parents upset at ‘unidentifiable’ kids' lunches

Parents reported that school lunches were late to arrive and 'went into the rubbish'.

www.nzherald.co.nz

 

[defensivebomb]

But if you have costs like interest deductibility rules; tenant first rules, significant healthy homes cost, etc that make people not want to be landlords anymore (keep empty or switch to air B&B) then that reduces supply so those changes can push up rent.

agreed

Also if you have costs that affect all landlords equally (skyrocketing rates; insurance; mortgage) then if landlords react as a group the price can change without supply and demand as the tenants can’t simply switch to a cheaper option. Ie if costs rise by inflation generally rents will rise by inflation.

well, I agree if they act as a group. But in reality, mum and dad landlords don't act as a group. They just try to get the best price and minimise vacancies. It really is a commodity product, and landlords' abilities to influence the market (on their own) is limited and futile to try. Vacancies come up at different times and the best hope is to just get market rent

Fine theoretically if they all band together. But each is beholden to their own situation. If the numbers cease to stack up they either hold their breath for as long as they can with a desired rental rate (and hope not to suffocate) or just sell and find another investment. If they are cashed up and have no finance costs, they can just do a landbank. But these guys wouldn't be affected by interest deductibility anyway