Renters ‘continue to suffer’ despite inflation dropping

Saturday, 19 October 2024

New Zealand's inflation rate has dropped to 2.2%, the lowest in more than three years. Although prices are still rising, the pace has slowed. Lower prices for air travel, petrol, and vegetables helped, but rent and insurance costs have increased.

Renters “continue to suffer” despite inflation dropping as rental prices continue to rise, an advocacy group says.

The consumers price index data showed rent had increased 4.5% from September 2023 to September 2024.

The Green Party was quick to single out rent rises as being the biggest contributor to the inflation rate and criticised the Government’s treatment of renters.

“Housing is a human right, but this Government is treating it like a game of Monopoly,” Green Party housing spokesperson Tamatha Paul said.

“The current landlord Government has only inflamed the situation by handing landlords $2.9 billion in tax cuts while punching down on renters with no cause evictions and allowing rents to spiral out of control.”

Data from 17,500 tenancies managed by Barfoot & Thompson in Auckland found the average weekly rent paid in the region was 4.81% higher in September 2024 than one year ago, rising by $31.44 to $685.47.

Rent rises were one of the biggest contributors to the inflation rate.

But there was some reprieve as this was the first time the annual increase dipped under 5% this year. The annual increases measured over the previous three quarters were: December 2023 up 5.27%; March 2024, 5.69%; and June, 5.59%.

Barfoot & Thompson general manager for property management Samantha Arnold said she anticipated a general settling in the pace of renter activity and rental pricing moving forward.

“There are existing factors, such as some renters holding off on moves to help manage pressure on their household budgets and landlords choosing to hold rents to retain steady tenancies,” she said.

Renters United spokesperson Zanian Steele said “while the government congratulates itself for constraining aspects of inflation, renters continue to suffer”.

“Rent increases often outstrip wage growth, meaning the plight of renters in Aotearoa gets progressively worse. While landlords may have felt the bite of the recent economic downturn, renters tend to be poorer, more vulnerable to job loss and thus more adversely impacted than many other groups in society,” he said.

“This is a Government of, and for landlords, out of touch with the concerns of ordinary working Kiwis.”

Renters United called for the Government to back track on its reforms to the tenancy law which would make it easier to evict renters.

“In this constrained economic environment, housing security is paramount, and it is time for Aotearoa to have a mature conversation about rent controls that would regulate price increases,” Steele said.