Free up the land

The HoS reports:

Forty per cent of landlords have increased their rents in the past six months, and many by up to 10 per cent, a survey shows.

The survey, run by Landlords.co.nz and Mike Pero Mortgages, found 26.2 per cent of the 614 investors surveyed who had increased their rent had done so by 6-10 per cent.

Another 42.5 per cent of those who had increased rents had done so by up to 5 per cent.

Sixty per cent had increased rents in the past year. …

He said a supply-and-demand equation was pushing up rents. A shortage of housing stock was prompting competition for rentals, which in turn made rents rise.

The only sustainable solution is to free up more land, increasing supply, which will reduce prices.