Landlords fleeing the market leave rental shortage behind
New figures from Trade Me suggest there's a rental shortage, with available rentals down 49 percent between December and January across the country.
According to one expert, property owners are dropping from the market because of costs and tired of being “vilified”.
Andrew King of the Property Investors Federation joins The AM Show to discuss some of the causes behind the rental shortage.
Housing in general is a bit of a mess.
"People are getting out of the market - they'll be retiring, doing other things, but the people who are coming in to buy are simply not there,"
Wellington’s median rent has raised $30 since October, with one two-bedroom rental receiving 55 applications in a single day.
According to Mr King, private rental property owners make up 85 percent of the rental properties.
So when landlords decide to sell their property, for whatever reason, Mr King says that new buyers “are simply not there”.
Investing in property comes at a big cost these days, with factors like a big deposit, LVR limits, and talk of a capital gains tax often deterring new investors from making the plunge.
Watch the full interview with Andrew King above.
The AM Show with Duncan Garner, Amanda Gillies and Mark Richardson, weekdays 6-9am on RadioLIVE and streaming live to the rova app on Android and iPhone.
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