Rents moved very slightly in favour of tenants in most New Zealand regions during July

I'm not sure they were. My assumption is that they (or maybe more correctly, their property manager) failed to consider how quickly and significantly the rental market has shifted. Similar to the market for sales, they would have been wise to get ahead of the pack and save themselves 10's of thousands by dropping the rent (for those selling, this could be 100's of thousands saved, and the difference between a selling and not).

Well thats a myopic boomer view.

First year was free in 2021. Of course they had an elevated amount of enrolments when it was free.

I don't think being woke has much to do with them going broke. More likely because they shifted focus from education to property investment. They've now found themselves at the pointy end of this correction.

Judging by a few Wellington FB pages, it's ironic that the people who complained the most are the ones that could be bothered going to vote on their local election day!

I think you will find it's 100% tax deductablity. Labours influence on rent increases. 

Agreed. It's amazing the effect of even a small increase in supply has to rental competitiveness.

(Re-zoning for higher densities in Wellington happened way later than 2016 when Auckland did it. But the effects will be exactly the same.)

And when interest rates kept dropping,they lowered their rents....yea right. 

That's not how it works.  It works by bringing more landlords in to the market through them buying the much cheaper older properties, thereby increasing rental supply, offering lower cost houses instead of expensive brand new ones, at lower rents.  Eventually the supply pressure means existing landlords are forced to lower rents to compete with the new landlords, and to retain tenants. 

See the massive increase in rental supply since National took office.   https://johnbutt.substack.com/p/inventory-charts

So you've bought one of those cheap, imported Chinese crystal balls, then Zwifter?

I'd recommend spending a bit more next time.

My crystal ball shows we're in the same situation as we were in back in the 70s and house prices stood still for 10+ years. Actually, in the 70s central government forced local governments to free up more land but this time they've done that AND forced higher density zoning changes.

You can't live in a landlord. Where have these 'spare' houses magically appeared from?

Nothing to do with young people fleeing in droves KW as our spluttering economy nose dives (worse than the GFC)...?

"War On Landlords policies"

That is political rhetoric of certain political parties to get a certain category of voters to vote in a popularity contest.

Another way of describing the policies of the previous government is "pro owner occupier buyer" in the existing dwelling market".  The previous government prioritised owner occupier buyers over non owner occupier buyers in the existing dwelling market.

Yep my landlord literally told me that with a straight face. Said they wanted an extra $50 a week, because another house nearby was listed for that.

If they can get more they will at any opportunity, and the agents stoke the fire even further. 

Their market won't be booming for long, then we'll be hearing the same stories from across the ditch as we've heard here since prices started dropping.

"while they are missing out on buying in the booming Aussie market"

As market prices rise, there is fear of missing out in the ownership market. Not a good reason if house prices are at elevated risks. 

Yeah, its an absolute coincidence that at the exact same time as National changed the tax laws back, rental inventory shot up.  Prior to March, rental inventory was normal - and yet there was no change to interest rates, building rates, unemployment, or anything else leading up to (and after) March. 

You must think its a miracle sent by God? 

haha yea because people will move houses to save $5-20 per week..

Landlords do not pass on any savings they make though reinstatement of interest deductibility or lower interest rates to existing tenants

True, and interest deductibility gives them room to lower them more, especially with rates and insurance increasing. 

Lower rents come from new landlords offering cheaper properties.  I can buy a $720k brand new townhouse and it would rent for $550 a week - a 4% gross yield.  Or I can buy a $450k older unit and rent it for $450 a week - a 5.2% yield.  As a new investor to the market, which one would I buy?  As a tenant, which one would I prefer to rent?  Reinstatement of tax deductibility equalised the choice between old and new properties, and landlords are now going with the one that actually makes sense for both the owner and the renter.

Labour's policies did absolutely nothing to lower house prices for buyers, and all it achieved was to make renting far more expensive, and forced tens of thousands of families into public housing.