More on the rental crisis hype

One of my pet hates is the “research” turned out by real estate industry groups which is always, shall we say, very optimistic whether talking about rental increases or price increases. So I was amused when a friend pointed out this article in the paper on the weekend.

Rather than showing a surge in rents, data from the New South Wales Government shows there was no growth in apartment rental bonds in the three months to December.
In Sydney’s inner suburbs, three-bedroom houses recorded growth of 3.6 per cent but two-bedroom houses also showed zero growth.

Of course this is for the end of last year rather than the start of this year, but it puts the predictions in perspective. As I stated before its not surprising that the real estate industry publishes favourable research to their interests. What is disappointing is that the media outlets, papers, television, radio commercial as well as ABC and SBS almost uniformly regurgitate this uncritically.

Media watch has a more comprehensive hosing down of media gullibility in the face of real estate industry “research”. A fine collection of misquoted tenants, and exagerated stories some being pushed by political parties.

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One Response to More on the rental crisis hype

  1. steve munn says:

    Yes, I saw that Media Watch story Steve and it made me think of one of your earlier posts. This issue is a very good example of Market Failure as well as media manipulation. Market worshipers take note.

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