Tenants are calling for rent controls, but the Government says it has no plans to implement them for now.
Advocates say they need a quick fix to prevent the imbalance between demand and supply - because it takes such a long time for new houses to be built. But economist Brad Olsen told RNZ it encourages renters to stay in houses far longer than they needed to and makes the rental market more problematic in the long run.
Recent legislative changes only target buyers, so rent is likely to rise steadily due to the increasing costs for landlords. It’s likely we’ll see more conversations about rent controls as rents rise, but hopefully, as construction catches up with demand we’ll see rents even out.
For central Auckland, rents have been more subdued due to a lack of international students and travellers; once our borders open up and these people start coming back in big numbers, apartment rents will almost certainly jump. Those who do hold onto their rentals over this time are likely to reap the rewards in 2022 and beyond.