Latest / Best of Business / Brad Olsen: Infometrics Principal Economist on the new deals set to lure in Auckland renters

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Brad Olsen: Infometrics Principal Economist on the new deals set to lure in Auckland renters · Best of Business

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  Speaker 1: for renters.
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  Speaker 2: We're hearing reports that landlords are trying to secure new
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  Speaker 2: tenants by offering them grocery vouchers or a week's free
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  Speaker 2: rent to lure them in. This comes as trade me
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  Speaker 2: stats show the number of new rental listings in Auckland
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  Speaker 2: was up thirty four percent in February compared to a
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  Speaker 2: year ago. Last week on Friday, actually we told you
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  Speaker 2: about rents coming down in the main centers in Auckland
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  Speaker 2: and in Wellington in particular. Brad Olsen is the Informetric's
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  Speaker 2: principal economist. Brad. Hello, good evening. So it sounds like
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  Speaker 2: affordability potentially getting a bit better for renters. We had
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  Speaker 2: that seek data out last week and now we've got
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  Speaker 2: this story about incentives being offered.
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  Speaker 3: Yeah, it does certainly seem like there's a bit more
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  Speaker 3: opportunity out there when it comes to the rental market.
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  Speaker 3: People who are still in their rents that you know
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  Speaker 3: they signed up a while ago. It's not like you
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  Speaker 3: can easily negotiate your rent to go low with your
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  Speaker 3: existing land but for people who are casting about for
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  Speaker 3: a rental. At the moment, there does seem to be
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  Speaker 3: generally a fair bit more choice going on and a
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  Speaker 3: bit of downward pressure in some areas on rend prices,
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  Speaker 3: because well, there's just not quite as much demand and
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  Speaker 3: there's now more people who are offering a house to
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  Speaker 3: rent than there are people who are looking to rent,
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  Speaker 3: at least in the short term.
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  Speaker 2: Why has it gone up so much? In Auckland in particular,
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  Speaker 2: Trade me reckons that listings up thirty four percent in
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  Speaker 2: February compared to a year ago. I mean, is that
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  Speaker 2: just seasonal stuff or is this something going on here?
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  Speaker 3: I think there's some underlying trends coming through because you're
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  Speaker 3: seeing not quite the same degree, but you're seeing that
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  Speaker 3: sort of similar trend emerging in Wellington. I know that
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  Speaker 3: the flat that I currently rent, you know, if it
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  Speaker 3: was relisted today, we wouldn't be paying nearly as much
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  Speaker 3: as we currently are. So there's definitely a feeling that
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  Speaker 3: there's both a bit of supply and demand going on here.
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  Speaker 3: You've got a few more people that are going Look,
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  Speaker 3: I'm obviously wanting to list my house on the market
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  Speaker 3: to try and get some people in and that's probably
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  Speaker 3: because of where more rates and similar have been. But
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  Speaker 3: I think it's just as important that you've got again
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  Speaker 3: the fact that when it comes to New Zealand is
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  Speaker 3: having left the country in similar again, that level of
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  Speaker 3: demand is just not quite as there as it was before.
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  Speaker 3: You've got more people now who are not looking to
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  Speaker 3: rent for whatever reason, and all of a sudden there's
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  Speaker 3: more rentals on the market. Both of those I think
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  Speaker 3: are linked, but overall they mean that there are a
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  Speaker 3: few more deals to be done and a lot of
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  Speaker 3: landlords who are going Actually, I need to figure out
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  Speaker 3: how to fill the space, because it's not like before
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  Speaker 3: when as a landlord, people walked into your house and said,
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  Speaker 3: you know, please pick me and you had a bidding war.
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  Speaker 3: Now it's more of a how do I make sure
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  Speaker 3: I've got a renter that can fit in?
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  Speaker 2: Yeah? Interesting, Brad, Thank you very much for that. Brad
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  Speaker 2: Alsen on the Renters.
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