According to this property report by economist Tony Alexander, there has been an easing of demand for rental properties. This is something we have been experiencing since March and that we mentioned in our recent newsletter.
We have been struggling to find tenants for vacant properties lately. It is my view that the upward pressure on rents due to higher interest costs is at odds with tenants being able to afford higher rents. This is why we are unable to find tenants at higher rents and have to drop rents to last year’s level, to fill vacant properties.
You can read the full report here.