Matt Ball: Property Investors Federation advocacy manager on whether New Zealand renters are better off

A new report has found New Zealand renters are better off than a year ago.

The Regional Rental Affordability Index found affordability improved in most of the country over the past 12 months, as rents ease and incomes rise.

Property Investors Federation Advocacy Manager Matt Ball says it's not the same story in every region, but renting is definitely more affordable.

"If you look at Auckland - rents have been flat in Auckland for a number of years now, so renters are in a much better position now than they have been in previous years." 

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Episode Transcript

Speaker 1 (00:00):
The past five or so years have seen kiwis flocking
to Australia in search of better wages, rent and lifestyle.
But we're now spending thirty nine percent of a monthly
earnings on rent, down five percent in a year. The Aussies, however,
trending in the other direction. Probably Investors Federation Advocacy manager
is Matt Ball and joins us. Now how am that.

Speaker 2 (00:19):
Andrew? Thanks for having me on.

Speaker 1 (00:20):
So these rents going down? Is this happening? Is it
continuing or is my producer being hopeful about getting a
lower rent.

Speaker 2 (00:28):
Rents are definitely coming down. It's not exactly the same
all across the country. Some parts like Queenstown that's still
not enough supply and higher demand. But if you look
at Auckland, I mean rents have been flat and Auckland
for a number of years now. So yes, rents are
in a much better position now than they have been
in previous years.

Speaker 1 (00:46):
And what's causing the change?

Speaker 2 (00:49):
I think in this case it's really a supply and
demand thing. So demand has slackened off a bit as
our migration numbers have dropped out, but also supply so
actions that the previous government labor coom an underfeldweifet took
to increase the ability, the planning ability to build more houses.
And then this government has just pulled out all the

(01:12):
stops to try and increase housing supply, to make it easier,
faster and cheaper to build houses, and we're seeing the
effect of that. So if you have more supply, I.

Speaker 1 (01:20):
Mean there's an overhang of apartments. I got to notice
the other day from an investor bulletin has said there's
nine hundred excess apartments right now. So the apartment market's
bottomed out, townhouses bottomed out, So this is a great
time to buy, and people are buying low and if
they're buying low, well then the rent's low one.

Speaker 2 (01:38):
Percent, So that's an interesting dynamic in the market too.
So first time buyers are doing really well at the moment.
But also if you're an investor buying now, your return
is better than say, if you're an investor who brought
it the peak of the market for a very high
price and that's now dropped, then yeah, things aren't so
good for you. But for renters, it's a really good

(01:59):
time to be a renter, so you know, take advantage
of back rental property.

Speaker 1 (02:04):
Is this a passing statistic or something that will stick.

Speaker 2 (02:08):
I don't think it's a passing statistic. As I said,
this government is pulling all the leaders in terms of
trying to increase the number of houses that are built
and to reduce the cost of building those houses. That's
a really important thing. We need people to have good quality,
affordable homes. If supply and demand is imbalanced, then rents
will be reasonable. It kind of doesn't matter to investors.

(02:29):
You know, you can buy that property that needs renovation,
put in the work and you make your money that way.
Also you make your money through cash flow. You buy cheaper,
you rent cheaper.

Speaker 1 (02:38):
It's all good good.

Speaker 2 (02:39):
So no, there's a positive thing long term.

Speaker 1 (02:41):
All right, Matt Ball, I think you for your turn.
Property Investors Federation Advocacy Manager. The text of flying in
right now about the wriggling like an eel, I think
is one thing. Others saying that was softball interview Dickens.
Was it really other people saying I was a really
way too hard? Don't you love this job? There's sixteen
minutes a half.

Speaker 2 (02:59):
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