A house/Flat/Apartment does not get more expensive to own once purchased because of low stock. Landlords are increasing rents because they can and because they are greedy. I agree that NZ needs to tidy up its laws and processes concerning consents but even that does not help those caught in the rent trap due to rising rents and diminishing ability to save to meet the deposit of housing market out of control. Renters are not the problem home owners/sellers, landlords and agents are the problem.
The rental price increases are also due to the high capital cost to buy the house, and it's value on paper.. If a house was worth 500k 5 years ago, and is now worth 1 million, then the rent for that property would also likely have to raise significantly over that time. My understanding is because if someone was starting out buying a rental property today, they would be buying that property at 1 million dollars, so the rent they need to get that amount, would need to reflect that. People who already own rentals, therefore can raise their prices to match this. If they didn't rise, then noone would be able to buy an investment property to rent out, as they need to get a certain amount of rent to cover cost such as the mortgage. If they aren't at least covering the mortgage, then the landlord is essentially paying to have someone else live in their house, and therefore solely relying on potential capital gains, which may or may not occur. I don't know how some people can rent their houses out and make any profit, when you take into consideration all the costs, and hassles. Insurance, rates, maintenance and big ticket replacement costs are all very high.