This is not a surprise

Newshub reports:

Tenants around the country are looking at rent increases of up to 30 percent as a freeze comes to an end, says a renters advocacy group.

The Government put a stop to rent increases from the start of the COVID-19 lockdown in March until Friday – meaning landlords can now increase rental prices for the first time since the initial lockdown.

On Parliament’s lawn today, a small group from Renters United chanted “rent freeze, please don’t go” and asked politicians to commit to supporting fairer rents and solutions to housing supply.

Renters United’s Ashok Jacob – who is facing a rent increase himself – said some tenants were now facing rises of $100 per week.

“People all over the country are saying that their rent is increasing by 20 or 30 percent as soon as the freeze is over – almost as if to make up the rent they could have increased [by] over the break.

I’m amazed anyone is surprised by this. If you legislate a price freeze, then of course prices shoot up when the price freeze ends.

We tried this with Muldoon in 1982. And after the freeze was lifted, inflation hit 17%.

The way you sustainably lower rents is increasing the supply of housing, which means allowing cities to build both out and up.