Remember you are competing with many other things - utility bill increases, childcare increases, rego increases, etc. This stuff is already squeezing people. If people are squeezed enough that they can't buy things, how will they find the extra money to pay more rent? And note that you can at least buy Christmas presents on credit. You can't pay rent on credit.
This may be where the key difference between now and in the past is coming in. At the same time you might be seeking rent increases (because interest rates are going up and CG is not happening), renters are being confronted with a whole heap of other increases which hadn't appeared in the past. Another prospect in the future (besides the utility increases etc.) is China exporting inflation via price increases. In the past couple of decades China has been exporting deflation. Of course the landlords are also being faced with similar price increases so now it becomes a bit of a fight over which increases have the priority with the losing group having to wear more of the cost.
If the money isn't there, the money isn't there. Something will simply have to give.
The thing is demand for housing is actually quite elastic. The key options people have are: increasing household size (share house, moving in with parents) or leaving the area. This is especially true if jobs do not actually exist in the area itself.
This may be where the key difference between now and in the past is coming in. At the same time you might be seeking rent increases (because interest rates are going up and CG is not happening), renters are being confronted with a whole heap of other increases which hadn't appeared in the past. Another prospect in the future (besides the utility increases etc.) is China exporting inflation via price increases. In the past couple of decades China has been exporting deflation. Of course the landlords are also being faced with similar price increases so now it becomes a bit of a fight over which increases have the priority with the losing group having to wear more of the cost.
If the money isn't there, the money isn't there. Something will simply have to give.
The thing is demand for housing is actually quite elastic. The key options people have are: increasing household size (share house, moving in with parents) or leaving the area. This is especially true if jobs do not actually exist in the area itself.
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