Rent caps could shrink rental supply and push rents higher
As calls for rent controls gain momentum, REIWA argues the policy could discourage investment, reduce rental supply and ultimately make life harder for future tenants.
The rental market is tough but there is wide division about how rental inflation should be tackled. (Image source: Dmytro Sheremeta/Shutterstock.com)
Tenant advocacy groups have recently renewed their call for rent caps in Western Australia, a measure that is strongly opposed by peak real estate body REIWA.
Frustrations with the rental market are justified. WA rent prices have risen significantly over the past few years and rental affordability is at the lowest level in decades. Rent caps, however, are one of those policies that sound far better in theory than they work in practice.
They may…
