Love it when economists write fiction.

“ Rentals, in economic terms, are a product. To make a quality product for the market, the producer – the landlord – invests substantial sums of money in construction and maintenance to meet legislated minimum standards for rental properties. They also have to cover land and income tax, insurance and mortgage costs.

The rent from a property is expected to cover these expenses with an average return on investment between 3% and 7%. As soon as there is a rent freeze and the return on investment starts falling – in some cases into the negative – landlords will cut back on what they consider discretionary spending.”

#HousingCrisis #rentalIncrease

https://theconversation.com/rent-freezes-and-rent-caps-will-only-worsen-not-solve-australias-rental-crisis-208099

It’s not a market sorting itself out, it’s a feeding frenzy. #HousingCrisis #rentalIncrease
—
The Real Estate Institute of NSW’s chief executive, Tim McKibbin, told the inquiry the plan would not deal with what he believed was the underlying problem causing the rental crisis – a lack of supply – and urged the government to let the market sort itself out.

“It’s an old saying that says the market never lies and the market does what the market will do. If we interfere with that then there will be adverse outcomes,” he said.

https://www.theguardian.com/australia-news/2023/jun/07/nsw-government-shelves-controversial-secret-rent-bidding-ban-after-warnings-of-price-increases

Oh fun, my #landlord has issued me a #rentalIncrease notification. They want to raise my #rent by 11%.

Literally the only thing that has changed is the market. There has been zero improvement to the apartment. In fact, at one point during this lease year, we went more than 3 months waiting for a basic repair.

Sure could do with better tenant protections and a sensible cap on rent increases.

#Sydney #AusPol #NSWPol