A new research paper has found that wage inflation and the number of dwellings available are the two biggest factors in the cost of renting a home.  Like most economics papers, this latest publication from Treasury, the Reserve Bank, and the Ministry of Housing could easily be headlined: laws of supply and demand still apply.  It found that an increase in nominal wages leads directly into a 1-to-1 ratio increase in rents—all else being equal—and that a 1% increase in people per dwelling resulted in a 1.

https://www.interest.co.nz/property/123505/new-paper-treasury-reserve-bank-and-ministry-housing-says-housing-supply-and-wage

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