Assistant governor Sarah Hunter says 'there's little to no evidence' that rate hikes are causing the nation's rental crisis.
'Little to no evidence' interest rate hikes are causing rent rises, no quick fix for housing crisis, RBA saysThirteen increases have pushed the cash rate up from 0.1 to 4.35 per cent in the last two years, which has been cited as a factor in weekly rents growing at a rapid pace.
There is no evidence to suggest landlords are directly passing on the rate hikes to their tenants, according to the RBA. "However, our preliminary analysis suggests that market conditions explain most of the movement in market rents, and there is little to no evidence of direct pass-through to rents from higher interest costs in the short term.
"The impact of the imbalance between new supply and new demand for dwellings can be seen in both the rental market and the established housing market," she said."And in the established housing market prices have risen significantly in recent years – demand versus supply fundamentals appear to be alive and kicking."In the rental market, our assessment is that the level of demand relative to the stock of properties available is the key driver for market rents...
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Can the Reserve Bank squash the last of inflation with just a threat?&x27;When the RBA speaks, households listen.&x27;
Read more »
Immigrant with cancer wins $1.9 billion Powerball jackpot in USCharlie Chao&x27;s &x27;billionaire&x27; joke before the draw comes true, and he now plans to &x27;find a good doctor for myself&x27;
Read more »
No 'quick fix' to housing crisis warns RBA assistant governor Sarah HunterThe Reserve Bank says there are early signs that developers are responding to rising prices and rents with plans for new housing supply, but it will take many years to solve the affordability crisis.
Read more »
China issues clapback over Australia's $50 billion defence boostBeijing repeated claims the federal government has a &x27;Cold War mentality&x27;.
Read more »
Construction begins on Adelaide's new $3.2 billion hospitalConstruction has officially commenced on South Australia&x27;s new Women&x27;s and Children&x27;s Hospital in a significant milestone for the state&x27;s healthcare system.
Read more »
'Shouses' are surging in popularity. But are they the answer to skyrocketing building costs?"People are amazed when they walk in, and it&x27;s just &x27;wow&x27;," NSW resident Jill Crocket says.
Read more »