Residential - Boom or Bust

Started by Shareguy, Jul 02, 2022, 06:18 AM

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BlackPeter

Quote from: Shareguy on Dec 19, 2024, 12:31 PMThe rental market in Auckland is the hardest I have seen it in 20 odd years.

https://www.interest.co.nz/property/131338/trade-me-property-says-residential-landlords-may-need-reduce-their-asking-rents-due

Good - real estate (no matter whether you buy or rent) is still ways too expensive based on a market producing upmarket housing and ignoring that way the bulk of the market which needs housing but can't afford to pay upmarket housing.

Looks like we haven't learned a lot since the French revolution with the famous "Why don't they eat cake" citation of the last French Queen. We produce too much cake (upmarket housing) many can't afford and neglect to produce as well bread (affordable housing) people could afford to buy.

We live in an area with generally high quality (and high price) housing. Not a typical rent out area, but too many of the houses unoccupied and for sale - at prices unaffordable to most people. Owners prefer to leave them unoccupied for months (and some for years) rather than dropping the sales price.

On the other hand - number of rent-out caravans increasing. This situation is neither good for the people who have to live there on a permanent basis, nor for the community as a whole.
 
Will be interesting whether our politicians have the brains to resolve this issue ... if not - the French people found during the revolution an alternative use for them ...