Why Are Rents Soaring Faster Than Wages? | DW Business
HTML-код
- Опубликовано: 26 сен 2024
- Rents are rising rapidly around the world, outpacing wage growth and creating a significant affordability crisis. This alarming trend is driven by several factors, including pandemic-related disruptions to construction, leading to a shortage of rental housing. Rent control measures often discourage investment, worsening supply problems, while central banks' interest rate adjustments impact housing markets. Proposed solutions focus on encouraging development and expanding the build-to-rent sector to increase housing availability. DW Business' Rob Watts speaks to Liam Bailey, global Head of Research at Knight Frank, to explore the reasons behind this trend.
Subscribe: www.youtube.co...
For more news go to: www.dw.com/en/
Follow DW on social media:
►Facebook: / deutschewellenews
►Twitter: / dwnews
►Instagram: / dwnews
►Twitch: / dwnews_hangout
Für Videos in deutscher Sprache besuchen Sie: / dwdeutsch
#business #rent #wages
There has been a priority for building only expensive units, and middle class needs have been depleted. Comes down to prioritizing profit over people, which is why government needs to regulate and penalize this practice.
It’s not a “priority”. It’s a market solution that does not require taking public money needed for services.
How many affordable rental units have you produced? You need to stop prioritizing blame.
This video is quite clear how rent control becomes counterproductive.
,< which is why government needs to regulate and penalize this practice.>
They already did that. And these are the results. Renovictions, properties sold off to corporations as ordinary owners are driven out, fewer rentals available let alone affordable.
@@shauncameron8390 That hasn't been done. Living in a fantasy world are you???? Too much Fox news and Newsmax?
Too many ultra-rich speculating, which is why politicians won't do anything about it.
what can they do? , its the same in all countries. But its true that Politicians don´t want house prices to go down, since that would mean lower property taxes, could give Banks big looses on loan and angry home owners. So prices should be stabil and slowly rise
Plus, most of their constituents and voters are home-owners.
Answer is simple greed.
It is mot simple geed,it the enormous uncontrolled greed
BS.. it is an excess of demand over supply.. ever heard of the term "economics".. ???
This guy: Rents are too high, but not high enough to foster development.
The mental gymnastics he does not to admit that leaving it to the market doesn't work.
Landlord Pensioners are hooked on gaming the system. It's time for everyone else to strip them of their pensions when they later on put hands out for taxpayer funded pensions once they screamed through their super account balances. Taxpayers aren't saving money by subsidising landlords in the myth landlords don't ever become a taxpayer liability on a pension later. They are. So it's now necessary to strip out the billions wasted on trying to keep them off welfare in old age as landlords now. Nobody holds a 🔫 to their 👫 and say go on go buy another investment property every year. It's greed pure and simple. And it's now killing young people and those not breeding due to being in this transient housing market full of speculators. Speculators are just tomorrow's aged pensions so let's be having their 🦰🦱🦳🦲 tax haircuts eh?
There is no free market. The state decides, who is allowed to build, where, what, who gets a loan, what interest rates one pays, who gets a road and a kindergarden, how thick are your walls and how many cars you will have.
Do you really think a couple of cubic meters of concrete would cost a million EUR in a free market?
@@urbansenicar81 Benefits of free market as a system that accurately price assets is a long debunked fallacy.
Pushing for a free market created the feudal system we now live in, where big money sets the prices not the market. The population as not increased, there are houses for everyone, so why the price spike?
@@presbiteroo It's not a free market. Let people build, where they choose. Bricks cost nothing. (Regular) land costs nothing.
Old flats are worth zero, but are off the charts, because the state prohibts people to build their own.
People have built hoses for thousands of years. How can it possibly be out of reach in this day and age?
The state is "solving" a problem it has created in the first place.
And I've got no time for "investors". People will build the thing themselves. And I mean themselves, brick by brick, old school.
(I don't care about center, center, center of London or a beachhouse.)
@@urbansenicar81 ok. I see what you mean. I live in a capital so its a different story. But yeah, can't wait to get out of here to somewhere less crowded and start a brick work :D
The Social Houses are Abandoned with intention... Those who decided to finance these Cartels organized by these Landlords should be held accountable, They have a sure aim to enrich themselves from the poverty of the Workers!!!
You are clueless. MOST BTL's now in the UK make a loss.
Yes, you are clueless, my family owns 5 small aprtments in Cologne and last year they make only 85k Euros, that is split between 2 people (mum+dad). Yes they are in their 60s, but do you know how much work they put in planning/organising/cleaning / fixing..etc If they work in Mcdonalds. they will get more money. A lot of People who struggle to pay their rent is ussually not good with money management. I work in an investment banking outside london and a lot of colleagues in my work have 1/kids driving BMs and Mercs AMG..etc. Their payment for their mortgage and their car finance is almost the same. How is that making sense? I am german, i dont drive german car, i drive Kia and i am on £70k living alone. Open your eyes and look at yourself in the mirror before blaming other people.
@@ghosthdel3098 Well said. Private rental sector is a cheap 'Pinata' for clueless voters and political class.
In simple terms. It's called Artificial Scarcity.
"We have all this equipment and technology to fix this. But we won't."
@@eksbocks9438 not much Artificial about it, Its because People have way to many Children, so now we are over 8 Billion people that all wants housing,education,food,cars,phones ect everything. So with extra 75 million people every year ? it not supprising that we don´t have enough Houses,food and all other.
In the old days: Being a landlord meant having a spare building in the yard to rent-out.
Now it's a "Get rich quick" scheme. Instead of turning to regular investments like normal people do.
Too many wannabe rich people owning "Investment" properties.
And almost nothing set aside for Working Class people. With the only exception being Helsinki, Finland.
And their low rate of homelessness is so obvious. Compared to other countries.
there will allways be smart people, that moves faster than "ordinary" people that might have other goals in life. People that work hard, dare to take a chance/risk sometimes it goes wrong, but sometimes it realy pays off, but then a lot would be envious. If it was a "get rich quick" scheme?? Then why would not all people do it ? If nobody would start to buy/build houses for rent ? Then there would be absolutly No Flats for rent, and people would be worsh off. I don´t think you have thought much about this problem.
Get rich quick scheme? Sounds like you don't know how real estate investment works
@@pauljiltsov9950 Sounds like you don´t know, its very easy to understand. You buy a property or more? and then Rent it out, you then ofcause have some expences like intrest on loan,water,power,uppkeep,taxes ect. and then you set a fair rent (in leavel with that area/standard) and hopefully turn a profit. That was easy when intrest was low, but now it can be hard to get your expences covered. So now you know more. (i don´t charge you for this)😀
@@mabuhayproductionltd3627 dude, I was making fun of the first guy who said "investing in real estate is a get rich quick scheme".
I am an investor myself and I know it is very hard to turn a good profit on renting out real estate.
I think you misread my comment.
@@pauljiltsov9950 sorry, no offence
How about the AI tool ( RealPage ) helps landlords collude to keep rents high?
Using ai to collude on prices (illegal) using a legal loophole
If the market isn't working to build what society needs, tax the rich (on their assets, not income) and build social housing.
who pays for the social housing and do you think that taxing the rich would provide enough funds for this.. also.. do you think the rich stuff their money into a mattress ?.... some education for you, they invest their money into productive industry... get an education
That's not a viable long-term solution. Plus, there are not that many rich to begin with and inevitably the middle class and anyone unfortunate enough to own anything of value through years of saving and hard work will be targeted.
@@shauncameron8390 exactly.. 100%... but too many people want someone to vent their anger at and are not interest in facts and figures..
@@milesinnz
Pretty much. And also they're not interested in the history of places that actually did what they're calling for.
@@shauncameron8390 There are no bases for the the second argument, just speculation. From the first its just not true, hyper rich hold a massive amount of assets, which are barely (or not at all) taxed. The maths has been done my many independent groups.
This guy never even mentions that massive industry groups of landlords have started using an A.I. driven algorithm for anti-competitive price-fixing. Oh no, don't talk about that.
He just goes on about how government intervention is counterproductive and how lower rents for folk take away the incentive for developers. Totally supply-side point-of-view.
They aren’t price fixing, they are “rent optimizing”. As long as there are cities with rental shortages LL will raise rents -software or no software.
Civilization has entered late-stage capitalism.
Capitalism is an insatiable hunger, one which is inherently incapable of expressing the concept of "enough" - it's a system that must chronically engorge (without pause).
Poverty is the mother of necessity; the comfort of the rich, depends upon an abundant supply of the poor.
the Alchemist
-Ø1
Yes. It's a concept known as "Tragedy of the Commons."
Greedy people who won't share. Which ends-up taking away something important from everyone.
Hence why we have limits on how much fish or game we can take from Mother Nature.
I think that renting appartments/houses should be illegal. Either you use it, or you sell it. Simple as that.
No it shouldn't especially in the city where most people tend to move a lot.
@shauncameron8390
That's a good point. But if the price would be 3 times lower, it wouldn't be a problem to buy and sell more frequently
demand is too high . consequence of open border
I live in Honolulu and work in banking. Prior to covid I had the 20% down payment in cash and credit history for my own condo but my income was not sufficient to meet the mortgage at very low rates which would have been the best time to buy. During Covid I was offered a better job with higher pay but now the prices for homes have increased, the mortgage rates have also increased and I am back to the same problem of not having sufficient income to cover the mortgage. I currently live with my Mom in the family home that is mortgage free. She told me not to worry about it because one day I will inherit one of the family properties anyway so there is no point in stressing to buy a home. I'm taking advantage of high yields on safe returns right now and using the monthly interest income as extra disposable income to enjoy spending on my mother, myself and the family dog.
Bro everywhere and everything is expensive bro So depressing
I want the government to support me
:))) NOT COMUNISM
@@crazylordbc3347 We pay the taxes that the governments are spending. That money is supposed to be spent for the benefit of the taxpayers as a whole and not used for corporate interests and profit. Everyone should want the taxpayer money spent on them. It is why it was paid to the government to begin with.
Rent rises, maybe Both European and UK Governments should make Laws to order Global Assets Managers to stop speculation of Rental Homes and get out of market. In UK Assets Managers are building their Rental Homes portfolio and give and take ten years both EU and UK Governments would have to use Taxpayers money to fund Assets Managers shareholders "rising yearly Dividends".
It is a give that high rental rates are one cheanism to price out certain tenants or make it unaffordable for residents to live within the city limits. High rental rates equates to gentrification.
@@thelastshallbefirst6531
And gentrification is the answer to blight and decay.
rent only rises
wrong. it did fall under Covid-19
Why?! They havent given us solar yet?! Why do I have to pay more?? Idk if they would let me have solar I wouldnt complain!!!
Lots of folks are gonna end up on the streets.
Banks, insurance,taxes.
Bureaucracy.
So many world wide even in Canada are having a hard time keeping up with the rise of living costs vs rent increases, so many are one rent increase away from being homeless.. it’s that serious in Canada 🇨🇦
Planned, executed, this is outcome . came about in all western nations, all staple foods high priced, low quality, rents/ mortgage doubled. gas holding high jumping jack tax daily.
Private/foreign fractional reserve banking of nations.
Plantation of private Corporations surviving off the people, with government regulations, policies.
Air b n B.
Like Uber for car sales.
The consequence of rent control.
Put a quota on how many big corporations can buy
Back in the 70's prices were lower for everything and it worked just fine. When technology came about and you could press a button on a phone to make a payment the greed started. ...
So were wages.
Greed has always been part of human history. Even squirrels hoard as many nuts as they can for the winter.
Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank 😊
Algorithm lol. Old fashioned price fixing
This guy is amazing at mental gymnastics. The laugh when he's asked if rent freeze works is telling.
He is exactly right. In all those desirable cities there are rent controled apartments sitting vacant because the rent would not cover the cost to bring them up to code.
Look at the list of US cities where rent is NOT a problem, where there has been a large volume of rental building -they are places without rent control.
The rent moratorium durring the pandemic depleted rental units. Small LL failed or sold.
Without landlords, there would be no housing!!!
Why is this guy talking that rising rents is a recent trend? It is not
very basic reasons, inflation, slow growing wage per capita, less appetites from Gen Z and Millenial to own a house and get a mortgage and live debt free and to top it all real estate new construction figures are in a slump. More tension on rental and not enough habitats available for rental.
Companies shouldn't be allowed to own residential houses for renting. That's the big problem.
Force them to sell and youll see the price go down to normal standards.
Companies buying homes are a consequence of rent control and taxing and regulating ordinary property-owners out of the market.
It's interesting how this economist tries to present himself as the voice of reason against those "irrational" rent caps but can't at the same time present one example of simply building more reducing rent, while price caps at least work for a part of the population.
Hamilton Ontario has higher rents than Vancouver? I find that difficult to believe.
Lower the the tax on consumption and labor, increase the tax on land
Market forces will have people work more, consume more, and use less land
Less land per capita allows for more construction
Maybe many landlords use an app that makes the rent go up independent of low demand as it is used in some places in the US. And how about all the new immigrants, they do need housing as well.
some must pay the rent, an empty apartment don´t earn any money. Landlords demand what they can (so they can pay cost). Dont rent if you don´t want to cover the cost
That does Rob Watts besides his own videos!
If your an Australian 🇦🇺 you no that answer this is for the out siders no doubt 😉🤔👍😁😉
China plenty of empty apartments.
In Australia people bought four or five houses on mortgages and duh... they increase rents to keep up with mortgage repayments and compensate for net profits 📈..
too easy ... 😂😅... when Robinhood robb the poor and handling the loots to the rich..😜🤪😝...
The answer is capitalism. K thx bye.
Greed, next question.
no ignorance
Housing has become a casino.
yes
Rents are very high in California, but it's considered to be a very good thing, a sign of a healthy economy where people are making money and have more money to spend on rent. It means more profit for landlords, who can then invest in improvements and making more housing. And they pay more taxes. Building housing these days is very expensive and people need a strong incentive to invest in it.
Landlords in the UK are heading for the exit at record pace. It's a total waste of time and money investing in BTL now, over half make a loss already and Labour will just make it even worse.
tragic
@@Jack-e5t Tragic for 29 of the 30 people that wanted to rent the last flat I put in the market - went in 1 hour to the first viewing - AND I'm selling even that flat later this year beacause it makes a massive loss - I would only make it worthwhile by doubling in the rent.
Rent didn't go up, in previous years there has been inflation which included big rises in minimum wages. Rents don't ever out page wages because then nobody would rent your rental. The issues in German probably indicate minimum wage is too low, minimum wage in Germany is way lower than minimum wage in the New York city. That's a minimum wage issue for new workers, not a rent price issue. The cost of living is more in Germany than New York so the rent seems higher
Rent has outpaced wages in many cities.
the Mass Immigration Crisis is causing a lot of problems
But there is also increase in home prices in the home countries of those Immigrants themselves. How does your theory explain that?
Partially, only. Yes, it is causing problems as there isn't enough properties. But this is partially a fault of the government as well as they haven't made any steps to mitigate the need for housing. If you know your country population is going to increase, will you just not build new properties?
The problem isn't about more people, they can be very beneficial(especially if you have jobs in the location!). The problem is, you need to build to match. Not to say 'market will decide' and then few millionaires come over and build stuff to rent and nothing else. The common people just pay to get by, no chance of owning it. Long term, you do end up with a feeling you are a hamster on the wheel of a capitalist greed.
@@gidmanone pleanty of cheap housing in Iraq,Iran,Pakistan,Syria, ect. Maybe expensive in Large Citys (but thats mostly because the wages is low)
DW News. Best news source in the world.
Maybe adopt the Chinese model in Europe. Lots of empty apartments their, millions of them
but will you live in Mongolia or in Deserted West China ?
I guess Europe's population will plunge to less than half of what its now. Expensive rent is the final nail in the fertility rate's coffin. In my family 2 people out of 23 have kids. Just a small sample of what 's to come.
so just give people more money? and they will have more kids ? wrong. Many other reasons and the drop in Births is nothing new, it started over 50 years ago.
greed is the problem.
housing should not be commodified.
Real estate as a medium of investment should not be allowed. Vacant houses should not be used like stocks on the market. They should be occupied.
no ignorance is the problem, landlords have a lot of Expensen and taxes to be Paid, Intrest on Loans have gone upp many times last 2 years.
@@mabuhayproductionltd3627 .. um.. youre defending landlords?
maybe... just MAYBE... landlords shouldn't be using people need for shelter as a way to line their pockets.
unless you mean landlords are ignorant.. then i would agree with you. landlords do not understand the responsibility it is to hold someone's lives in their hands. if a landlord is in it for money... they need to simply not do that.
@@Andre-qo5ek ha ha, try to think a bit more. You are a socialist ? by that thinking then People should have anything for free or low price ? I accept Greed is a thing, but in most countries there is protection against Greed, fx if a Landlord have demanded to much in rent, you can take him to court and got the rent put down. Many places there is laws against empty houses, many countries Fx Spain and New York have protection for "renters" even if they dont have a contract or pay anything (they just break inn and occupy the place). Many landlords only have a few appartments they rent out for a living, and sometimes the don´t have a place to live, they don´t get rich by renting out.
@@Andre-qo5ek People has diffrent ways to earn a living?, we live in a free country so you or anybodyelse shouldn´t tell people what they should do, That is how Capitalism works, landlords offer you a Service and it cost Money. Then its up to you if you will pay it or not. If the rent is too High?, so nobody will accept it ? Then he/she will have to lower the rent to get an Income (a littel is better than nothing). I think a lot of the Problem in US, is Because a lot of People Earns a lot in High Tech (Microsoft,Google,Amazon,Nvida,ect) and so Rent has increased too. That gives a Problem for those that earns less.
Welcome to Australia. 😢
The inflation raised my rent too.
Stop eating your lattes and drinking your avocados!