Olly Newland’s Column, April 2010
The latest statistics make interesting reading indeed. What they show is there has been a huge surge in people choosing to rent. There will be serious consequences if this trends continues … which I am sure it will.
Many have come to realise that renting is still far cheaper than owning especially while capital growth remains so elusive.
The last surge in renting was in 2008 but for different reasons. The rise in house prices and the higher interest rates prevalent at the time forced people into renting. Now the picture and the reasons have completely changed.
The following article by Mr B Hickey of interest.co.nz demonstrates what is happening in the market. (Although he and I draw different conclusions.)
Rents unchanged for 2 years despite surge in numbers renting
April 9th, 2010
New Zealand’s median weekly rent was unchanged at NZ$300 in March from NZ$300 in both March 2009 and March 2008, but the number of New Zealanders lodging bond rentals has surged in the month by more than 54% to 19,683 in the last two years as many opt to rent rather than own. …