networkn:
Obviously yes, it is 20% better, or the market wouldn't bear it.
The huge number of people living in motels and cars in Auckland suggests the market cannot bear it and has not been able to for some time.
Low interest rates make it very easy to kick the can down the road for FHBs, but they are now committing 40% of two incomes for 30 years to a first home.
That's assuming there's no drop in income for kids, career setbacks, illnesses, or need to move into a bigger home at any point. But they can just borrow more.
The problem is the people who need to move rentals because a landlord sells to realise a tax free gain or their kids need to go to a school they're not in zone for face not only the rent, but massive moving costs, and they're competing with a bunch of FHBs who are in a holding pattern, who as young professionals, are far better prospects for landlords.
Like I say, the emergency accommodation list suggests this isn't working out well for the bulk of Kiwis and it needs to be fixed.


