The government will just import more tenant, and increase handouts.
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If rents have really reached a limit in some cities, what's going to happen when the Reserve Bank increases interest rates in response to inflation? Are we going to see some property investors being forced to sell up?
I really don't think the limit has been discovered yet. People will skip all sorts of necessities to stay housed. Lots of investors have family to lean on, move back into the family home etc. Shit is gonna get really bad in the coming years.