Subsidy boosts don’t mean rent hikes

The housing market may have cooled down in recent months but affordability concerns continue to dominate public discourse.

These have been heightened by the recent release of this year’s Demographia Housing Affordability Survey which ranked Auckland as the fourth least affordable housing market of 92 surveyed.

It follows hot on the heels of Statistics New Zealand data which revealed that home ownership is at its lowest level since 1951.

Meanwhile, Trade Me Property’s latest rental price data has showed median weekly rents are up nationwide.

These factors prompted Monte Cecilia Housing Trust chief executive Bernie Smith to tell the media of his anger at property speculators who flip houses, bump prices up and lock people out of home ownership.

Smith also said that some long-term landlords were not much better as they increased their rents when the government increases housing subsidies.