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Where are housing rents rising and why?
In 2022, restrictions have been rolled back in many cities and business districts are becoming busier, meaning that the appeal of living in central areas has returned. While demand has recovered, in most cities the supply of properties has not. On top of landlords selling their properties or moving them back onto the short-term rental market, we are also seeing fewer newly built properties being released since the pandemic caused a significant slowdown in construction. Global inflation, the highest it has been for decades, is exacerbating these supply side pressures; the cost of building materials is inhibiting the delivery of new properties and landlords are passing higher property maintenance costs onto tenants.
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