Govt study finds rent inflation 'directly linked' to wages

Sylvia Park's 295-unit residences could help stabilise nearby rental prices. (Image: Kiwi Property)

Thu, 10 Aug 2023

Increases to the minimum wage and ongoing salary hikes were a direct contributor to home rental hikes, according to a new report from the New Zealand Treasury, Ministry of Housing and Urban Development and the Reserve Bank.The paper, authored by the housing technical working group’s Alan Bentley, Enzo Cassino and Nam Ngo, found that wage inflation and housing supply and demand were more accurate barometers of rent inflation than house prices alone, which could be driven by supply restrictions and interest rates.While mortgage interest rat...

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