The growing demand of New Zealand is experiencing high revenue growth triggered by tourism besides farming, technology, IT sectors, and other industries tourism has accounted for billions and millions of dollars contributed to the country. When it comes to tourism different sectors and sub-sectors including food, accommodations, hotels, motels adventurous activities, transportation, hiring and rentals, restaurants, bars, clubs, casinos, tertiary education, and many more are likely to be encountered. The number of visitors has been rapidly increasing here in Queenstown prior to the pandemic year no wonder Queenstown has become a famous tourism spot of all time that includes a variety of adventurous activities such as ski, skydiving, bungee jumping, paragliding skyline Queenstown and many more. Short-term rentals are not only the reason why Queenstown is facing trouble in finding accommodation this is just one of it as there are several other reasons why housing has become the main problem in Queenstown for visitors travelers excursionists and backpackers possible reasons could be Queenstown is relatively smaller than other cities. Every town and the urban city has the capacity to hold a limited number of people due to the influx of tourism and the number of people in the same destination that brings in people in Queenstown could be a huge hassle causing increment of traffic congestion, rapid number of people in the same spot, overcrowding and several more. According to the census 2021 (June), the maximum population of Queenstown is 15,450. Due to the higher demand of visitors, people who'd love to visit Queenstown are now experiencing issues finding accommodation which is happening as most of the long-term rentals have been turned out into short-term rental properties allowing property owners to generate income more than they generate from long term tenants consequently, property owners are now taking advantage of their assets hence, they have switched from long term rentals to short term rentals earning more income than ever before.
Moreover, Interest rates can have a significant impact on both mortgages and the rental market.
When interest rates are low, it can make mortgages more affordable for homebuyers, as the cost of borrowing money is lower. This can lead to an increase in demand for homes and a rise in home prices. On the other hand, when interest rates are high, mortgages become more expensive, which can discourage some potential buyers from purchasing a home, leading to a slowdown in the housing market.
In the rental market, rising interest rates can lead to an increase in rental rates. Landlords may have to pay more to finance their properties, which can lead to higher rents to cover their costs. This can contribute to a rental crisis, particularly in areas where rental rates are already high, and can make it difficult for low-income households to find affordable housing.
Moreover, rising interest rates can also affect the ability of renters to purchase a home. If interest rates increase significantly, it can make it more difficult for renters to save for a down payment, as the cost of borrowing money becomes higher.
In conclusion, interest rates can have a significant impact on both the mortgage and rental markets, and rising interest rates can contribute to a rental crisis by making it difficult for low-income households to find affordable housing.
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