The rise of 'accidental landlords'
A growing number of property owners in New Zealand are becoming 'accidental landlords' after failing to sell their homes at desired prices. Experts warn that these owners, often forced into the rental market by economic conditions, may face challenges in managing properties.
Why it matters
This trend reflects broader economic shifts in the housing market, where cooling demand forces property owners to pivot their investment strategies.
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Some would-be house sellers who have not been able to get the price they want are deciding instead to rent their properties out - but there is a warning they should take care.
Data from Cotality shows there was an increase in the number of properties that were listed for sale but did not sell, and were then rented, in both the market peak of 2021 and again in recent months.
Cotality chief property economist Kelvin Davidson said the 2021 peak could be because more people thought that being a property investor was an appealing prospect.
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