Latest news with #rentalmarket
New York Times
10 hours ago
- Business
- New York Times
Is a Law on Brokers' Fees Giving Renters a Break?
Good morning. It's Tuesday. Today we'll look at whether a new local law has transformed the market for apartment rentals. We'll also get a look inside the newly renovated Waldorf Astoria hotel in Manhattan. This was supposed to be the summer when a new law on broker fees would change the rental market in New York City. The law, called the FARE Act, all but ended a longstanding practice requiring apartment-hunting renters to pay thousands of dollars to brokers. My colleague Mihir Zaveri says the premise of the FARE Act was simple but transformative: Whoever enlisted a broker's help would pay the broker's fee. If a landlord gave a listing to a broker, the landlord would pay. A broker can show someone an apartment, but it isn't the would-be renter's responsibility to pay the broker — unless they had agreed to a fee arrangement in advance. Some brokers are showing apartments and, afterward, claiming there was a de facto payment agreement. The Fare ACT went into effect on June 11. I asked Mihir to discuss whether the law has made things better or worse for renters so far. You write that the results have been mixed. How so? The intention of the FARE Act was to lower the sometimes staggering upfront cost of moving and make it less confusing and more transparent. In many ways, it has done that. Most renters can avoid broker fees when searching for apartments through online platforms like StreetEasy. Want all of The Times? Subscribe.
CBC
a day ago
- Business
- CBC
Rent and housing prices send Thunder Bay's inflation rate to 7th highest in Canada
Social Sharing Thunder Bay, Ont., has the seventh highest rate of inflation in Canada, according to Statistics Canada. This week, the national data agency released its report for June. Overall, the country experienced an annual inflation rate of 1.9 per cent, an increase from 1.7 per cent in May. The report, broken down by cities and regions, indicates Thunder Bay's inflation rate has more than doubled, from 0.9 per cent to 2.1 per cent. Mehdi Arzandeh, an assistant professor at Lakehead University's faculty of business administration, said Thunder Bay's inflation situation stands apart from other major cities in the country. "There are some underlying factors that make things that we consume everywhere in Canada more expensive... the price of cars went up, price of footwear [and] furniture," Arzandeh said. But, Arzandeh noted, what sets Thunder Bay apart from other cities in Canada is the state of its rental market. "In the last month, to put it in perspective, the rent on average in Canada went up by about 0.3 per cent, [and] in Toronto 0.9 per cent — in Thunder Bay it went up by 3.8 per cent." Unsteady atmosphere Nationwide, the continuing rise in inflation is in line with current trade disputes with the United States. Doug Porter, chief economist at BMO Financial Group, said inflation showed no real improvement in June, in part because the trade war is pushing up some prices. The high cost of housing is also a contributing factor that's keeping inflation up, Porter said. Feeling the pinch from high grocery bills? A group in Thunder Bay has an interesting way to help 2 years ago The Boreal Museum in Thunder Bay is doing foragers walks until the end of September. The goal is to teach people how to search for wild vegetation in and around the city's forests and elevate your cooking to new heights. CBC's Taylor O'Brien trekked through Thunder Bay trails with founder and creative director, Jason Feller, to learn how to forage. However, Thunder Bay stands in contrast to the rest of the country in its resilience to the impacts of the current trade dispute, Arzandeh argued. "Part of a good thing about the Thunder Bay economy is the fact that it proves to be resilient actually in the face of some of the trade disputes," he said. Because of our location, because of the port of Thunder Bay, we see more activity in our economy due to some of these trade disputes - Mehdi Arzandeh, Lakehead University, assistant professor But if the increase in the price of housing in Thunder Bay persists, Arzandeh argued, it could have some long-term consequences on the city's affordability. "Thunder Bay has become more popular with international students and newcomer international students," he said. "If you see newcomers because we have a growing economy, in the face of trade issues and geopolitical risk, you might not be ready to accommodate all those rental unit demands in Thunder Bay." Growing economy Thunder Bay has the potential for economic growth in the near future, according to Arzandeh. As exports to the U.S. begin to dwindle due to ongoing trade disputes, companies may be looking toward Thunder Bay. "Consumer goods are going to go up unfortunately due to the tariffs," he said. "Because of our location, because of the port of Thunder Bay, we see more activity in our economy due to some of these trade disputes." According to Arzandeh, as Canadian companies look for markets in Europe and South America in the wake of tariffs, Thunder Bay is primed to facilitate those changes. "If chemicals and minerals are to be exported to new European markets and Latin American markets, they're going to happen through the port of Thunder Bay."
ABC News
2 days ago
- Business
- ABC News
Interstate investors swarm NT homes, shutting out local buyers and raising rent prices
Interstate investors are targeting properties across the Northern Territory and buying them up hours before they hit the market, as Darwin's rental market firms as the tightest in the country. Local doctor Nicolas Darmanthe moved to Darwin at the beginning of the year with his partner, and thinking they would be able to afford to rent a "fairly nice" three-bedroom home. But, after a few months of looking in a city where the vacancy rate is just 0.3 per cent, they realised that wouldn't be the case. "Even though Darwin is very far away and [like] a small country town, it turns out the rentals are just as expensive — if not more expensive — than down south in Canberra and Sydney," he said. Over the past year, interstate investors have increasingly turned their focus to the NT, where houses and units remain among the most affordable to buy in the country and rental yields are among the highest. Real estate agents have told the ABC they can sell homes to interstate investors "within hours", often before they are publicly advertised, with some saying the fierce competition to sell properties fast has left them no choice but to play along. Nick Mousellis, an independent real estate agent in Darwin, first started getting calls from interstate investors about a year ago and now fields numerous requests a week. "Almost every two to three days, we have an inquiry or an e-mail from a buyer agent," he said. Over the past year he's seen an increase between 3 and 10 per cent in Darwin property prices, and soaring competition for local homes. Mr Mousellis said interstate investors were targeting homes priced between $500,000 and $650,000, spending a small amount on renovations, and then leasing them at a higher price. Nicola Powell, chief of research and economics at Domain, said the sudden flood of interstate buyers had positioned the NT as an investment hotspot — second only to New South Wales. "[Rental] house yields are sitting at around 6 per cent, and [rental] unit yields are anywhere between 7 and 8 per cent," she said. "Compare that to a market like Sydney — where rental yields are sitting at 3 per cent — you can understand why investors are looking towards those cash positive locations like Darwin." Darwin's 0.3 per cent vacancy rate compares with a national rate of between 2 and 3 per cent, according to Domain's June Quarter Rent Report. Unit rents are at record highs across all capital cities including Darwin and, while house rents remain at record highs in all capitals, prices in Darwin dropped $20 in June. Dr Powell said interstate investors had the ability to revitalise stagnant markets but, in this case, they were likely "nudging first home buyers" out of the market and making it harder for people to secure an affordable rental. "We do have a rental crisis," she said. "When you've got a vacancy rate that is very tight at 0.3 per cent … it means it is very competitive for tenants — to have a balanced rental market, you need that vacancy rate to be between 2 and 3 per cent. "You tend to find that investors and first-time buyers go for similar priced properties. Ruth Palmer has been the executive director of the Property Council of Australia's NT division for over a decade and said she hadn't seen a "shift" quite like this before. She said Alice Springs had seen a "significant jump" in median house prices and improvement in the volume of sales. Ms Palmer said, with both sales and building approvals up, many NT real estate agents now had "a bunch of investors on their books who are chasing properties". "Sometimes the properties don't even get to market before they're snapped up by an investor, and this can occur within about 24 to 48 hours," she said. "What this can do is put a bit of an imbalance into the market, so while our volume sales are up and while we're seeing a lot of transaction, it doesn't exactly mean that it's growing the population. Ms Palmer said, as the NT continued to face high construction costs and a shortage of tradies, more needed to be done to "stimulate new builds". "Without more supply, affordability will remain a challenge," she said. In the March 2025 quarter, building approvals rose over 50 per cent compared with the previous quarter, according to the Property Council's latest report.
South China Morning Post
3 days ago
- Politics
- South China Morning Post
‘Avoid harsh labels for Hong Kong homes certified under subdivided flat regime'
Hong Kong should avoid negative labels for certified subdivided flats as they provide accommodation to people from all walks of life, the housing minister has said, while stressing that a planned shake-up of standards will not drive up rents. In an exclusive interview with the Post, Secretary for Housing Winnie Ho Wing-yin also said temporary flats were likely to continue serving residents in the future and form part of the city's housing ladder, but ruled out plans to further create a supply of starter homes for first-time buyers. Proposals to regulate the city's subdivided housing, which are notorious for their hygiene, safety and security hazards, are currently being scrutinised by the Legislative Council. Under the coming policy, subdivided flats that meet the official standards and are accredited as 'basic housing units' are allowed to remain on the rental market. 'We are giving a certification to basic housing units, which meet basic standards and are no longer inferior. I will not label them. They are simply choices made by different people at different times,' Ho said. She gave the reply to a question about whether authorities would prefer residents to leave such flats and move up the housing ladder.
Daily Mail
5 days ago
- Business
- Daily Mail
Househunter compares renting in London to 'the Hunger Games' after revealing bizarre list of 'tips' for tenants from letting agent
A woman revealed the bizarre email she received from an estate agent while looking for a flat - as she compared the London rental market to the 'Hunger Games'. Taking to TikTok, Harriet shared the message a friend got after doing viewings in the capital, which included a series of baffling 'tips' on how to get the landlord to accept an offer - such as paying a year's worth of fees upfront or pledging to increase the price each year. She hit out at the 'out of control' demands being placed on tenants, in a clip that has now racked up more than 288,000 views. The letter also stated they would need a 'bio' about each of the housemates and encouraged offering 'above the asking price'. 'Do you think I would be viewing a flat at this price if I could afford a flat over,' she quipped in the video. 'Anyway, moving along, "long contract length". Fine. Okay, whatever. Both things actually aren't really going to matter once the renters' right bill comes in.' Harriet was then appalled by the third piece of advice, which was to 'stick to the moving date or sooner'. 'Right. So, do you want me to stick to the moving date, or do you want an earlier one?' she questioned. 'Because if you wanted an earlier moving date, why didn't you just put an earlier moving date? I don't really understand this.' She continued: 'This one really got me paying up front from three to six to 12 months if possible. Oh, yes, sorry. Let me just get this £27,000 that sitting in my bank account and give it to you up front for a rental. 'Why didn't I think of that sooner? Oh, my goodness. I'm so glad you gave me these tips and tricks because now, I just feel like I'm going to get every flat I've ever wanted. F***ing idiots. The fifth was to 'offer a rent increase each year if possible'. 'Again, where is this money coming from?' Harriet questioned. 'Rent increase, absolutely fine,' she added. 'I'm not going to offer that. Why the f*** would I offer a rent increase? Landlords grab it from us already. I don't need to be offering that sh**.' She continued: 'These tips were hilarious on their own, but let's carry on. Lastly, "if your offer would be accepted, we will contact you first to give you the good news and then take the holding deposit, which is equivalent to first week's rent". 'First week's rent. Fine. Standard. You're ready for the Ending.' The email concluded: 'Thanks and good luck.' 'Is this The Hunger Games?' Harriet asked, referencing the dystopian fantasy novel series which sees poor people forced to kill each other in an arena for the wealthy to be entertained. 'I mean; to be honest, the rental market does feel quite like The Hunger Games, but this whole thing really made me laugh. 'And I just thought, this person has typed out or copied and pasted or got this email from somewhere and thought, these renters are going to love all of this. 'These tips and tricks are going to be exceptional. They're going to take all of them on board. It's just really made me laugh. God bless estate agents and the rental market in London.' Many rushed to the comments suggesting the 'tips' were 'appalling', with some saying it is 'gangster behaviour'. One person wrote: 'Who in their right SANE mind would OFFER a rent increase?!?!???' 'Estate agents are responsible for all the problems with house prices, price gauging, pitching people against each other,' another added. 'It's all gangster behaviour and seems unregulated.' A third penned: 'Literally if I had 27k I'd get a mortgage.' Many rushed to the comments suggesting the 'tips' were 'appalling', with some saying it is 'gangster behaviour' Elsewhere someone joked: 'They left off point 7 which is actually to kneel at a landlords' feet to kiss them, whilst throwing around £50 notes (which you may not keep).' Meanwhile some estate agents took to the comments to try and explain some of the 'tips'. 'It's obviously not the agents, it's the rental market,' one defended. 'Agents are only the messengers, if landlords weren't selling up there wouldn't be this level of demand.' Another suggested: 'As an estate agent most of the time we are actually instructed by our clients on what to say, sometimes we don't always agree but we must act on the clients' instructions! 'In my opinion I think this email is managing the viewers expectations and making sure that no one's time is wasted on both parties' side. Just remember it's not always the agent's fault!' 'In defence of the estate agent here, they're actually doing what many renters wish agents did: giving fair warning about existing interest before a viewing,' another advised. 'It might not be what you want to hear, but at least you know the situation upfront. 'Agents often get backlash when people view a flat and are later told their offer was too low in a competitive market. This heads that off. 'Yes, the spelling errors are a fair criticism, especially if it's a professional template. But a lot of these roles are filled by younger or less-experienced staff. You ask, "would I be viewing a flat at this price if I could afford more?" 'But yes, people often do. Some are downsizing, relocating, or going through breakups, they might have savings or sale proceeds and want to rent short-term rather than buy. 'As for the request to "offer more if possible" that's not a demand. If it's not possible, don't. But if someone else can and does, at least you know why they got it. Even the "good luck" sign-off, I think that's just human. 'There might be several viewings lined up. Would you rather they wrote "regards" instead? I know plenty of renters who complain when they lose out and say, "I would've offered more if I'd known" but this agent's giving you that chance in advance?' The Renters' Rights Bill is expected to come into effect from Autumn 2025. The bill proposes significant changes to the private rented sector in England, aiming to improve security and fairness for tenants. Key changes include ending 'no-fault' evictions (Section 21), strengthening tenants' rights, and improving property standards. The bill also seeks to ban rental bidding wars, introduce a landlord ombudsman, and create a private rented sector database.
