Read this article at the NZ Herald:
I predicted this 6 months ago and it is coming true.
You can put the blame on two things:
(1) The Government’s discouragement of property in investment by changing tax laws in last years budget to dampen investment and remove tax beaks.
(2) The huge slow down in building consents partly caused by over anxious lending by banks, higher deposits required, and the effects of (1) above.
As fewer investors buy into the rental market (and more investors get out of the rental market)
the situation will only get worse — much worse — for renters.
The inevitable result will be higher rents, and unfortunate stories of squalor and over-crowding.