Why Rent Control Might Be A Bad Idea
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- Опубликовано: 14 мар 2023
- $1,981 is the typical monthly rent in the United States based on most recent data. More than 19 million renters are considered ‘rent-burdened’, spending more than 30% of their income on housing costs. As concerns over rent affordability mounts, support for rent control policies have also gained traction. So can policy make rent more affordable in the United States? And if so, what would it look like?
Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States.
America already suffers from a deficit of 3.8 million homes, especially at low-income price points, according to Habitat for Humanity.
“We have not invested as a nation in building the supply of housing in a variety of communities, in a variety of different price points. We’ve instead relied on the private sector to do so,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “But unless that money comes into the market and investors see that as a better investment than some other kind of equity or some other kind of investment, they’re not going to come.”
Watch the video to find out why so many economists are against the idea of widespread rent control.
Chapters:
01:45 - Rent control
04:37 - Implications
08:38 - Federal policies
Produced by: Juhohn Lee
Additional Camera: Charlotte Morabito
Supervising Producer: Lindsey Jacobson
Graphics: Jason Reginato & Alex Wood
Special thanks to: Communities Resist
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Why Rent Control Might Be A Bad Idea
People sometimes forget that there are the corporations who own multiple buildings with multiple units, and there is the little old lady who has a duplex and rents out half to supplement her social security. We need to make housing affordable without bankrupting the smaller players. We can't let the corporations have a monopoly, or what has happened to the price of insulin will also happen to the cost of housing.
A lot of the little old ladies are miserable and overbearing
Graduated property tax. The more property owned the higher the property tax. We do this with income. Also add bonus tax for vacant units.
@@jefflane617 Too easy to dodge, and easier to dodge the bigger you are. Multiple LLCs, offshoring, all the stuff corporations already do to avoid taxes.
During the 1950s Greeks did an *antiparochi* system that gave property owners a slice of the apartment that would be built on their former property so that they would not lose a home.
@@jefflane617 Why would landlords want to have vacant units for any length of time? Aren't landlords greedy and trying to make a profit? How do they make a profit with vacant units?
Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a CFP or other professional for advice.
@@bernisejedeon5888 Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
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@@yolanderiche7476 You can easily look him up. he has years of financial market experience and he is also FINRA & SEC verifiable.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
The one effective technique I'm confident nobody admits to using, is staying in touch with an Investment-Adviser. Based on firsthand encounter, I can say for certain their skillsets are topnotch, I've raised over $700k since 2017. Just bought my 3rd property for rental. Credit to ‘’Christine Jane Mclean.. my Investment-Adviser.
@@HarrietBemish Thank you for this tip. it was easy to find your advisor. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé
I thought the whole name-drop dialogue, SPAM racket trend had petered out but alas, here we are. Still going strong.
You should take this act to tiktok. I'm sure there's 2 or 3 gen z's that haven't seen this show yet......
I rent out a house and my tenant has not seen a rent increase for the past 4 years since he moved in. He’s an excellent tenant and I want to keep him.
Yup, I agree with you, If I get good tenant, I will not raise rest too, I also don't want good tenants to leave my house. But I will hike the rent if its a trouble maker to kick them out
Raise it 3% a year at least so they expect it.
My greedy landlord just purchased the house I live in. She said to me when she met me “ my husband and I need to make out money back. We are raising your rent $200”. I’ve lived here for 7 years. Previous landlord was great. This landlord increase my rent and no upgrades and get annoyed if I have an issue. She doesn’t appreciate me as a good tenant. I’m leaving soon. I deserve better.
Good plan Bunny and we have often done the same these past 30 years.
@@NycBeauty The moment your new landlord bought the house is the moment the property tax went by the new market value of the property 7 years after, which is usually much more expensive. Makes sense. Blame the state property taxes that you prob voted for.
Currently, I live in a small one bedroom apartment in a rural area of a state that is ranked the fourth cheapest for living costs. Even then, I still pay almost $900 in rent, no utilities included. I moved here in October, and was just told by the maintenance man that I will be paying $1065 a month or more when I renew my lease. This may sound affordable depending on where you live, but the minimum wage in my state is still $7.25, and as a server, I make $5 an hour. I hold two jobs just to pay for living expenses, and I still spend over 50% of my monthly income on rent. Something has to give, or we’re going to be dealing with an entire generation that’s stuck living with their parents.
EDIT: Since this got over 300 responses, I feel the need to clarify some things. Im not sure whether anyone will actually see this but oh well.
1. I am a 20 year old female. A lot of people were speaking as if I were older, and referred to me as male for some reason.
2. I am currently in college. I have 2 years to go. I also have zero student loans/debt because my first 2 years of college were paid for by two scholarships and a pell grant. I recently transferred to a large state school that is renowned for my particular major.
3. I will not disclose the city or area but I live in a bedroom community near one of the two major cities in Oklahoma. According to Google, my rent payment is about average.
4. I do not plan on buying property here because I do not wish to stay in this state. I might even move out of the country once I finish my degree. I would not like to be tied down by property at 20 years old. My credit is very good for my age (700+), so I could probably buy property, but it really wouldn’t make a lot of sense to do that.
5. As some people mentioned in the comments, I am a server, and make $5 an hour PLUS TIPS. I work different days of the week and the tips vary so I could not state an exact amount. Some people also correctly pointed out that servers are allowed to be paid under the federal minimum wage, which is true. Servers can be paid as little as $2.13 an hour, in fact, it’s very common.
That's crazy. It's kinda the same here in Greece and because I have family in the US ppl tell me to move there because it's better but honestly I don't think so!
Sorry but the biggest crime I see here is that your employer thinks it’s ok to pay you $5 an hour.
I’d say live where my sister is her rent is $300 a month.
You could do better working at a McDonald’s or being a self employed groundskeeper or delivering pizzas. Are you deliberately keeping your income low to qualify for Medicaid and SNAP benefits? Why don’t you qualify to buy a home? Why don’t you have roommates to offset the rent?
Hi Savannah. I don't mean to sound callous. But, I wasn't born here. Migrated here on a boat like the oscar winner for best supporting actor the other night. I now live in the same city (newport beach) and near the neighborhood as the late Kobe Bryant. It took me years. But I made it. Life is about making sound choices. The fact of the matter is. Not everyone will live the American dream. It all comes down to numbers. The laws of probability and statistics.
A two bed/bath apartment in Arizona went from $1300 in 2017 to $1900 in 2021, a change in management added fancy electronic door locks, Amazon lockers, and picked up trash as extra charges which were not optional
Normal jobs are not giving $500/month increases, it's just sad
I’m in az and I have a one bed and my rent has gone from $1200-1700 in two years. We have valet trash I never use and they even charge us for package delivery service but all my packages are delivered to my door.
I’m so over luxury apartments what happened to the $1200 rents
I think those who build apartments too nice are expecting to bank off the rent they charge just to live there anytime. so i think they purposely make the places look too nice so u feel u living in luxury when it just a basic place that looks nice in any way. so i dont think apartments will ever be decent cause any new are all gonna be too nice that u cant afford to live ther unless u get help with rent anytime.
I am starting to see rent going down a couple hundreds compared to the peak in my area so hopefully it continues!
Condo reconversion has already come of age and is forcing the affordable owner out onto the streets as well.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above 750k in net profit within 2 years across high dividend yield stocks, ETF and bonds.
@@maiadazz I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
@@richardhudson1243 I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy Nicole Joi Anderson, a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy.I recommend researching her credentials further.
What happened to the people that build housing for the middle class and the people that have 150 thousand to buy a house no one having 8 kids no more the house they are building now u can have 3 family living in one house build small house for the masses not the 10% rehab stuff we have already don't build more we got enough adandon building around don't waste presicous material for new use the old stuff fix it up don't knock it down turn it around!!! Why is American great ? We get it done!!!
If you don’t want to force your people into moving somewhere else, rent should be no more than 30% of what your tenant’s income would be on the local minimum wage. The only solution is to risk high murder rates by living in the northern border zone of Mexico and commuting to the U.S. for work, but that is not a real solution, leaving no solution as it doesn’t matter how cheap somewhere is if there’s a good chance you’re going to get killed.
I'm in Tokyo, living on the East side. By law, my rent never increases. Once you're in your unit, you're rents are grandfathered in. Here, it's tenants who have the power, not the landlords. Also, units are well maintained. My rent today is exactly what it was nearly 20 years ago, and I'm paying 75000 yen (with today's dollar and the yen is rather weak, so I'm paying around $550). I have friends of mine from Australia, and they state that their rent increases are tied to inflation. So, if inflation is say officially 8%, then their landlord can increase rents a maximum of 8%. I'll quickly add that it's not that my salary is very high, but I am able to say a lot of money due to 1. the low rents here, as well as 2. Japan socialized healthcare and 3. not needing to purchase a car since Japan's trains are so very efficient and cheap.Using public trains I can travel from the East side to the West side of Tokyo for under $2.00. The money one is able to save without these three expenses is phenomenal !
Hear Ye Hear Ye.....Everyone complaining about rents and how expensive things are heed Jon's advice and Move to Japan or OZ...your problems are now solved and we turn off the comments! thank you Jon
Now that’s what I’m talking about. I wish it was like that here in the states.😢
@@petrobull2560 ahhhh Utopia at someone else's expense.
Tokyo has a shrinking Japanese population. That doesn't apply in the US.
wow 20 years ago your rent was 75k yen (550). that is a extremely high rent for 20years ago.
I don’t usually comment but US housing is almost impossible to obtain for people with disabilities. Also, there are no affordable housing options and a lot of people who who work every single day still cannot afford housing. This is not a presidential problem. This is American Problem.
The government assumes a disabled person is someone’s dependent or should be. To get section 8 housing you’d have to be put on the waiting list the day you were born.
Not sure where you live, but there are definitely programs for lower income people.
@pepperonis Another problem is connectivity. Americans keep assuming everyone can drive but in reality not everyone can.
@@pepperonish which are great except there are a lot of low income people all vying for the few resources available. There is definitely not enough and many live in deplorable conditions (I work with low in come individuals)
@@arkzyFn8 hmmmm solution....don't be poor!
Welcome to another episode of "Life Sucks as Millennial/Gen Z"!
And let's face it, if you look closely, some of these new/higher-end places are cheaply built/maintained. It takes a lot of work to even find a quality place let alone one that's affordable!
It's not a generational thing. It's a wealth gap issue. Don't get it twisted, That's how they stay in power by deflecting blame. Plenty of "boomers" are also feeling the squeeze too. The only thing that makes the politics misalign so much with the public perception is the massive wealth gap.
Agree. Cheap material and charging us out the ying yang
I just read somewhere that some cities are creating 3D printed hotels. I’m sure houses are next… God help us all.
@@raythe9264 I won't say boomers are not suffering right now, they are, but they will suffer for 20 years. We will suffer for 60 years as things only get worse and worse, so yes, it is a generational thing. Because we can't get started. We can't buy a house because we can't save. Houses were 70% cheaper in the boomer generation accounting for wages and inflation. My boss told me how he walked out of high school into a furniture store manager job and made enough for a 3 bedroom apartment in one of the nicest parts of San Francisco driving a brand new jaguar with money to save to invest into realestate. Today, that same apartment goes for $6500 a month, or $78,000 a year in rent. So over 100k in income before taxes, just for rent. So to have his life style, I would need to make over $250,000 a year, which ain't happening with a high school diploma and a furniture store manage job. Things are so much harder for millennials and gen z, which is why 48% of gen z have mental health issues, 10% of gen z has tried to commit suicide, and 28% of gen z has thought about committing suicide. Not to mention the cost of college has ballooned out of control. It costs over 16 times as much for college today as it did in the boomer generation. You used to be able to work part time to pay for college, but no part time job pays you $60,000 a year...
@@heyaisdabombright
Housing prices can drop 50% and I still couldn't afford one. It's insane. Everyone thinks that the homeless somehow choose it.
Sounds like a income issue. Since foreigners are able to come and end up the highest paid and millionaires it is hard to feel sorry for you being lazy lol.
@Mental Chores no it isn’t. Wealth is based on savings and sacrifice. If you aren’t wealthy and no one in your family is then why are you telling me what makes wealth? 85k is like 40k in many areas that is just a numbers without a locations and childish to use it like that. That childish outlook is why. Imagine thinking immiagrants who learn the right skills were “lucky” lol.
Poor baby a whole 35? And if you had a partner it would be like 30. Sorry if you except sympathy for that that is really sad you parents failed you badly
@Mental Chores so? You grew up in America. The wealthiest people in America are immigrants. The problem is you lack morals form having no parents so will never succeed since you will always be a victim to yourself. Outgrow that and you can succeed. That is why most end up homeless. No one can fix your morals but you. Good luck.
Who's fault is it that you can't afford it? Who made all of the decisions that got you to where you are now? Hmm. Maybe you should change something if you want a different result.
Prices are insane. It’s unaffordable and unattainable. I’m tired of the greed. To pay for an average rental you have to make $85k to live comfortably. It’s crazy. Something needs to be done or we are going to be in big trouble.
As a landlord why not fight for for better insurance.
I agree. I wish voters and politicians wouldn't be so greedy making laws, taxes, and regulations that make housing more expensive.
@Merican Modi that is not a long-term solution
Agreed get roommates or move to a cheaper part of the city if you refuse to get a roommate. It's simple, you can't afford it. Don't burden yourself and instead save that 6 month emergency fund. If you want all these niceties then earn it.
@@djm2189 you’re just contributing to the problem with your comments. It seems like you don’t realize the generations before us were able to buy homes without having advanced degrees. Did you know: 2-bedroom apartments in Bronx, NY in the 1950’s averaged $45 a month. Families were able to purchase a home and a car with a single income. City colleges didn’t charge tuition just a $50-60 registration fee. Health insurance was a tiny fraction of today’s prices.
A third of my apartment complex is purposefully empty here in Charlotte, NC. Not because there aren’t people looking, but because they can’t find enough people willing to pay close to 2k for a 1 bedroom apartment. The supply is so far off from the demand, it is either submit to a massive rent cost, or be homeless/have 3+ roommates
Lies again? RP Education
I hope it stays that way, the more time a unit is not filled by a tenant paying that price the more the complex/investors loose money on, until they are forced to lower their prices. 😒 But one can only hope. 🤞
Now imagine a landlord who had to do the math to determine the annual cost to maintain those units... Increased property taxes (higher for multi unit properties), utilities, insurance, repairs, and crisis repairs.
It's not the Landlords fault the Market and inflation of upkeep put the rents this high. Blame a wide system of failing to pay fair wages and the government for over taxing families. And for creating an unrealistic Social Security Pension that isn't keeping up with high prices.
@@kevinedens8551 Almost as if they would rather lose money than to admit they were wrong. Do you know how many clothing/accessories were set on fire by namebrand manufactures only because they don't want consumers to know they can buy at a discount if they wait a little? They literally rather burn their own merchandise than sell at a discount. Let's not even get in to the grocery branch, you can find that on Second Thought
@@ee4life623 They can write that off as a loss on taxes. So, for larger corporations, there isn't an huge incentive to lower prices to fill vacancies
It’s crazy & our politicians are doing nothing about it. A two bedroom apartment in Atlanta shouldn’t be 2000 a month smh 🤦🏾
Who do you think is invested in these national corporate rental property management and property investment companies are?
Preach! 🙏🏾
How do you raise a kid with that kind of burden.
@@SwiftySanders You don`t, you struggle. Then your kids do the same thing as they did.
The politicians created the problem. How do you think they are going to fix it? Any attempt will make it worse.
I live in NYC, I get emails for “affordable housing” all the time. Todays email was for an apartment building in Brooklyn where the minimum income to qualify for the lottery was $91k a year…… let’s just let that sink in
I’m » hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days
You're not doing anything wrong; you simply lack the knowledge required to make money in a terrible market. Only highly skilled professionals who were compelled to observe the 2008 financial crisis could hope to earn a high income under these challenging conditions.
@@Igorstravinsky788 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
@@patrickperez7387 They are true professionals at the top of their game; I had the pleasure of dealing with one, and it turned out to be really helpful as they assisted me in restructuring my complete portfolio. "Ruth Loralann Brennan , a well-known professional in her field who you may be familiar with, is none other than my advisor.
@@Igorstravinsky788 I must add that Ruth's profile appears to be quite knowledgeable, so I appreciate the suggestion. I thoroughly studied through her resume, school history, and qualifications after discovering her online, and I must say, they were outstanding. She responded to my message, and we set up a meeting.
If they are going to cap the rents they should cap the mortgages as well. People should be able to afford to own a home not just rent one.
So make it where the literal prices of housing cannot go up too high? Probably not the best idea. The true path forward is to build a crap ton of market rate housing, to ease the supply side of the issue.
@@bluekkid even if that happens it would depend on who can afford to build them. Price of materials and cost of land alone would make that extremely unlikely. If you can't afford what's currently available no way you can afford to build. Those that can afford to build aren't going to sell them cheap either.
It's not exactly the same as a homeowner can sell their house whereas a renter can not. That's the big difference.
@@gentlemans.guidance365 you’re imagining that everyone in this scenario buys a new home. The old stock still exists, and that is what ends up getting cheaper. There’s simply enough new housing ( not just Single family homes ) being built that demand gets sufficiently met.
@@BobthePointer That sort of artificial limitation might create problems down the line. Families with means will still find ways to game the system if it is profitable, as will corporations. The truest way out is to make housing a less profitable investment.
Yes rent should be capped. Job wages are not keeping up with rent prices. 2-3% pay increases just isn't cutting it in today's world it needs to be at least in the 20-30% range pay increase every year, maybe more. The government needs to do something about it now.
Completely agree with you! Why are rent increases so many multiples higher than wage increases?! Great point!
Please look up a supply and demand graph with a price ceiling. You'll see that a rent cap or price ceiling below the equilibrium price causes a shortage. There are good economics videos on this topic on youtube as well. Rent cap is not the solution although I agree this is a huge problem. Rent cap just makes it much worse.
my daughter lives in Charlotte NC, and she pays over $1400 for rent which is higher than my mortgage, this is crazy
Build more rental units in the areas where people work and do business.
It's higher than your mortgage until you include taxes, repairs and insurance. I pay 10k in taxes alone
Charlotte is a large city. You likely live, comparatively, in the middle of no where.
Damn. That is rough
Next to Charlotte is Columbia SC much cheaper but a smaller city and a 1hr 10min from Charlotte
If prices keep climbing, people will eventually have enough and take matters into their hands.
Lol. What does that mean?
@@RM-jb2bv Civil unrest will happen
@@eligreg99 civil unrest? You mean BLM is going to burn down more property across America ? Yea that should fix it
@@RM-jb2bv No more like the good ol’ boys are going to storm the capitol and plot to overthrow the government again. Yea that’ll work
@@eligreg99 they said on tv it was the most deadly insurrection of all time and we need to put Trump voter on the fbi list. But you sound like it was a joke. Which is it?
My rents up 15.5% from last year, it's wild
So are costs of everything. You think housing wouldnt be affected as well??
Better performance than the S&P 500
Thank your local liberal for this, stopping people from paying rents for over a year now has landlords adding a risk premium to rent and inflation increases rent too, landlords know the gov can stop people from paying their rent again so they will charge more now to make up from potential non rent payments
And is your pay up more or less?
I raised rent up on my tenant by 30% once I heard inflation I was like time to make some cash he had no where to go so he had to take the increase
Rent is going up but some of these jobs don't even come close to paying you a reasonable pay to be able to cover the costs that rent is being charged. Then these apartments wants you to bring in 3 times the rent based off of your gross pay. It should be if you could afford to pay the rent you pay it and if not then kick the person out. Even senior citizen buildings are charging ridiculous amounts. Some of these houses and apartments are not up to date and needs some major renovation for the prices they are charging. Especially when most of these places are infested with mices, mold on the walls, and water damage. Some of these places do a terrible job trying to patch up and cover up the mold, cracks in the walls and floor, and water damage.
Especially in downtown LA, where you see a homeless person doing crack in front of your high-luxury building apartments.
They use the 3x salary to rent figure to order to see if a tenant has the funds in order to be able to afford the place. If they have less, they likely don't have enough money to afford the unit
Tell that politicians they keep printing money
@@andreycham4797🤣🤣🤣🤣🤣🤣
In theory, the labor market can just refuse to take jobs that don't pay enough. In reality, finding better paying jobs is easier said than done, and our economy is not at all kind to workers who refuse to work, even when their reason is because the places that are hiring don't pay enough to live on.
They keep telling us "why why why why" for everything and no fix . Dont give af why things are high. How can we solve it
we can't, our representatives sold us out for the corporations, and private equity firms
Rent control make sure to vote for it. If landlords didn't want the government capping prices they wouldn't have raised rents so high that it creates more homeless.
Vienna, Austria is a marvelous model of how to fix this housing crisis, with public housing. I recommend looking up a video called "Affordable Housing in Vienna" from wohnfonds_wien. It's very enlightening.
@@saagisharon8595 Pessimism of the Intellect, Optimism of the Will, my friend. We are reaching an impasse and they are playing the role of Marie Antoinette. I recommend you read up on politics of France between 1789 and 1799.
Love this energy get em
I own rental properties and I've been trying to keep rents as close to the same as possible, but everything has gotten out of control expensive. Property taxes, new taxes on rentals, crazy high water bills, HOA increases, repairing anything, or buying new appliances. Everything is literally double. If people can't afford to rent, they definitely can't afford to own
why not sell then? Don't have anything else to invest in? If owning is becoming unaffordable for you
@@TyWerks We've discussed it, but between gains taxes, recooping depreciation and real estate commission you are taking a pretty big hit.
@@TyWerks thousands of landlords sold when prices skyrocketed. This means less rentals available with the same demand. This results in rent increases.
politicians: "printing money and debasing money will have no effect on the economy!"
the economy: ......
politicians: "its not our fault, its some, its "other people" fault, absolutely not the result of our policies/actions! society need to give us more power to fix things"
the media: "trust the system, it mean well and knows better"
Yup basically true
I pay $1400 for a one bedroom apartment in Dallas. I paid $1300 for a 2 bedroom in Dallas in 2018...
Exactly!! The same here.
Rent price cap and house purchase price cap would need to go hand in hand.
In NYC, you can't get an apartment in a decent neighborhood that isn't a tiny roach-infested studio for under $2,300, and the prices are only increasing. Something's gotta give.
that's no correct. you can find an apartment in bayridge under $2000
Yes it needs to be capped. Young adults like myself (18-25 years) are struggling to move out because rent is outrageous along with the cost of groceries and everything else and wages aren’t keeping up. There are enough apartments the problem is nobody can afford it
So dear Elijah.....what skillset do you possess that will pay you enough money to move out and get a place of your own. I can take one look at zillow and find all kinds of properties for rent.....put some effort in and get out of mommy and daddy's house and become an adult.
@@bsmiddy236 I graduated from college 2 years ago, make 50k and still struggle to afford rent here in Chicago. I also paid for my own education and car but good try assuming I’m leeching off my parents instead of acknowledging the problem I brought up.
@@eligreg99 PLEASE ASK FOR A REFUND IT DIDN'T TAKE! You said move out...move out from where? A quick 20 second search online brings up over 6800 rentals in Chicago as well as several in the 700-800 range so if you are at 50k you can find plenty of units for rent affordably in the Chicago area.
@@bsmiddy236 Did you account for the area that $700-$800 apartment is in? I’m not going to move in the hood for a cheaper price. That called hustling backwards. Also, some areas pop up as Chicago but in actuality are in the suburbs of Chicago. It’s more than just plugging in a low number and picking the cheapest price. I know you that. Why would I pay $800 for a tiny studio that has barely been renovated in the last century and is also in a bad area? Does that make sense to you? Do you live in Chicago or are you just talking from an outsider’s perspective looking in and thought you’d be able to give me a solution by taking a quick glance on Zillow? Lol.
@@eligreg99 Because that is what you can afford...it is called upward mobility. I don't like or think it should come at someone else's expense. So just looking at the area of Rush & Elm plenty of Rentals within your range.
The strange thing is that despite the post-covid exodus, massive tech layoffs and tons of empty rentals, rents in SF are not going down.
almost no supply and still a constant demand
@@moomie1634 Is there though? Like I said, there are _tons_ of empty units. The building I just moved out of in December _still_ has 40 units listed on Zillow, for instance. 🤷
@@ropro9817 living in Cali I can assure you, if those buildings are empty it's because the renter just hasn't chosen a rentee
Most lays off are of non us citizens
Temporary visa ppl from 3rd world
These corporates hiring cheap labor should be penalized with big amount of dollars
This is most horrible thing
Same in Portland, Oregon.
Yes rent should be capped and should be based on income apartments/ housing.
What about the landlords increasing costs? My homeowners insurance went from 2000 a year to 6000 a year. My taxes also went up. Who is going going to pay these increased cost?
WE DO NOT WANT TO RENT FOREVER!
Try cutting OUT foreign investors and raising taxes for out of state buyers / corporations before rent control.
How about just having everyone pay taxes on what they make. Not giving tax breaks to the rich.
@@mermaydekathryn1695 you mean like making "negative cash flow SFH" actually being negative cash flow instead of a tax offset?
Sounds like a pretty good deal if you let SFH 1-home owners keep the benefit so they can catch up.
@@Kevin-eq9qo that would be ideal yes. But the rich need to pay their share, greed has done serious damage to this planet. Especially this country.
I live in Chicago. Recently I found out the management company that runs my building wants to increase my rent by 15%! This rent would leave me nothing to live on, so I'm forced to move after 17 years of living in this building, which is not ideal for a woman my age (82). So I am looking. At least I have 5 months' notice, but rents everywhere in Chicago are increasingly prohibitive. Waiting lists for affordable housing are anything from 10 to 25 years (per Chicago Housing Authority). No rent control, no rent stabilization. We tried to vote for rent control a couple of years ago, but the real estate concerns managed to get it rejected. Stupid people live in Chicago, in my opinion. As an ex-New Yorker, I know how rent control and rent stabilization help people be able to afford to live where they work. Not so in Chicago. Here you have to wait for years for affordable housing, get on waiting lists, and wait, and wait and wait.
Why did you not sign for subsided housing program 20 years ago? First thing I did after moved to the US I signed for that program. Second thing I went to the US army to get free medical treatment to the rest of my life
@@andreycham4797 I did, ages ago. The wait times are 10 to 25 years at present.
@@andreycham4797 As I said above, wait times are 10 to 25 years. I will be a moldering corpse by either of those times most likely. I am on waiting lists for two buildings with no guarantee I will get an apartment in either building. I have only lived here for 17 years and didn't move here until 2005. Before that, I owned a house in Western Massachusetts but could not afford to maintain it after my husband abandoned me to run off with another woman. I lost every penny of my slender savings trying to get the house to a place where I could sell it. In other words, I was screwed and betrayed. Castigating me for lack of forethought is not at all helpful.
Property taxes in Chicago have gone up 50 % in the past 5 years.......and that's your 15 % increase in rent......Get mad at the local government and not the Owner.....!!!!
@@bogdan78pop I'm well aware of the property tax issue. One of my friends here in Chicago inherited an apartment building in Andersonville from her mother and had to scrape up nearly $10K for property taxes several times a year. She, however, only raised her tenants' rent $25 a year. This year's increase here is $170, way more than the management company needs. And frankly, this company has a citywide reputation as a bad company. For my own perspective, they are slow to respond to requests for help and when it comes, it is the bare minimum. My building is over 100 years old-Arts and Crafts design in fact. They show no appreciation for that so when they remove something, they replace it with tacky stuff that doesn't last. And they replace rather than repair. Greed is not hidden, and high real estate taxes are simply an excuse to gouge tenants.
Working full time in a corporate job, it doesn’t make sense that you can’t afford an apartment. Texas is supposed to be one of the lowest prices to rent but my rent is over 40% of my monthly income not including utilities. That is not sustainable. Jobs are not increasing pay to match rent prices.
I’ve been taught since I was a kid “save your money and budget”.
However, I always end up using the money I save to makeup for rising costs/rent and other unforeseen expenses. It seems like an unending cycle and I’m already tired.
So sorry to hear this... hang in there! There needs to be more reporting telling stories like yours on how rent increases affect people's savings as well.
Im a landlord that has rent control. I always raise the rent to the allowed maximum to cover my expenses to operate my units. Property taxes, water and insurance are few items that continue to go up consistently.
and if the tenants trash your properties what will you do? If they do $20K damage how will you repair it?
@@eckankar7756 you can sue for the damages, take the security deposit, and/or raise the rent.
@@epicunicat20 Lawsuits rarely net anything, if there is rent control you can't change the rent, the landlord has to eat the repairs. I'm still out $80K from the moratorium and some of the tenants were retired, so it's not like they lost their jobs. Few are going to be in the rental business soon, and then where will tenants move if there no apartments or rental homes?
@@eckankar7756 That's what the insurance is for I'm pretty sure.
@@epicunicat20 Wrong, insurance may not cover the cost and would definitely increase insurance premiums , and if there is rent control you can't increase the rent. You have no idea what you're talking about.
'Funny you think we're so dumb that you have to tell us people are greedy.
It absolutely should be capped. We desperately need to create a proper formula.
That's not how supply and demand works. Suggesting otherwise is straight up against how this country works.
Well, ok then they should also cap property taxes, insurance costs, sewer fees, inspection fees, landscaping and snow removal costs, and while we are at it, the plumbers shouldn't be allowed to raise their rates.
The issue is if you support capping this you need to support capping a lot of other stuff like property taxes, insurance, and just general things like labor and materials. Which is just saying cap inflation, which is easier said than done. Well it can be done but then we bump into the crossroad of going communist or having massive layoffs and unemployment in a spiraling economy.
As a landlord, I don't mind rent control as long as there is tax control. Only reason I had to raise the rent so much the last 3 years is the taxes went up in a manner I've never seen before. Things are finally stabilizing this year, and I don't forsee needing to increase rent for next year.
Exactly
This right here, I wish the video had gone into the inputs of why rents mainly have to be raised and it’s property taxes.
A large part of the problem is the speculative excess on the housing market from large Wall Street entities, all thanks to cheap credit and easy money. Their logic is, if money is cheap, then we should borrow the hell out of it, buy up all the properties, price everyone out, and make people perpetual tenants to generate perpetual passive income, i.e. modern slavery. When they do that, they make housing unaffordable for young families and also raise property taxes, due to increased property prices, for every other normal landlord.
because rent control ensures no more are built until the system crashes and big investors come in and swallow up the ruins.
We wouldn’t need as much rent control if we had looser zoning that allows even market rate building. And even rental assistance would go further if there was more housing supply.
R1 Zoning is certainly the mother of all evil.
GTFOH w your YIMBY fairytales!
it took me scrolling 30 comments to find a good one that offers some type of solution, and isnt "the government should step and lower my personal rent!!"
Well the government came up with the zoning laws. Also, changing zoning laws is still "government steps in and does something to my rent". It's just not as direct as rent control or other ideas. But it is still govt.
@@felixpuscasu5625 yes. Changing zoning making it laxer to allow infill development of homes to add supply and businesses so residents can walk places reducing traffic overall are steps the government should take. And in the end we would have looser laws which would be a little less government control and more market adaptation allowed.
I love how economist only job is to justify a system that screws over the middle class.
Get out of the middle. Stop crying. Do something different. Nobody owes you anything.
@Jinchuricki27...there are no more middle class citizens. There are the rich and there is everyone else.
Concur, there is something wonky with the economists they use for these stories... something is amiss here.
On Long Island in New York you'll be lucky if you find a 1 bedroom or even a studio for $1500 a month. Even people making nearly $30 an hour struggle with that after taxes and other expenses.
Westchester, NY has gotten even worse
Lon Gisland sucks...
It started with Condo buying and rental owners watching what they were paying monthly and they wanted in on it and jacked rents up to monthly condo prices.
70% of the U.S. economy runs on consumer spending. If more is spent on rents, less will be spent on local businesses that results in more people losing their jobs and more reliance on government programs. The higher cost of housing is hurting the economy. Governments need to find solutions!
Wrong. People are spending more on everything, including rent. Consumers are just shifting spending. Like some jobs die off and need to change to different industries.
@@LA_Home_Deals_Texas they were due future inflation fears.
Now that is desinflating. (Not rents).
Ratios of income/spending will be set.
You can see that some places already like in the border.
This is a nice comment love the whole factor point I dig it cause if that’s all people spending on them sounds like people need options to save or at least make other ways of having money and nobody checking in on that or getting in the way they want money right!? Then don’t question what one goes threw to pay your bills. I’m sure everyone wants to save and do different things with they money if allowed to
I personally prefer softer levers. I think breaking up some of the landlord monopolies, and providing some public housing at slightly below market prices would go a long way. Zoning reform would also encourage lots of small-scale building of density, as opposed to how currently only big devs can build anything that's not a detached single family house.
see now you are entertaining socialist policies.....as well as asking me to pay for someones rent. NO Thanks I am busy enough paying my own!
@@bsmiddy236 Oh no not the scary word! 😱😱😱
@@beback_ No not scary just stupid
there is no landlord monopoly.....you can go purchase whatever property you would like.
@@bsmiddy236 So you prefer working 16+ hours _every single day_ and still be homeless just to OWN THE LIBS.
Feel free to call me some sort of WOKE SOCIALIST, for I've got a bridge in Alaska I'd love to sell you.
I think there should be rent caps, or rent hike restrictions. Like you can't raise rent more than once in a calendar year or 12 month period with the same tenant. Or you can't raise rent without some kind of verfied improvement (like an appraisal almost),specific square footage requirements for certain price points, no way like 750 sq ft should cost 2k. Just something to stop the corprate greed. Many raised rent because they could not because of any actual increase to maintain the property, stating " the market demands it".... which is bs, cuz who sets "the market", there are alot of vacant apartments due to the rent hikes so it's not a demand issue, atleast not anymore and rents still aren't going down
@1pink1blue there absolutely should be a cap on property taxes. Homes that are 30 plus years old should not be appraised so much that they constantly raise the price. I can understand nice houses but no reason an old beat up building with apartments for rent the rent shouldnt be 1000 plus dollars that’s ridiculous.
We have to understand exactly what landlords and renters are paying for with that money the renting have to pay them.
From conversing with various landlords. Their taxes tend to be crippling. They rarely have enough surplus money to evict troublesome people legally, let alone pay for repairs to damage or decay.
In my city. Landlords also have to take partial responsibility for people on disability coverage.
Granted the ones i talked to could not be representative of the majority of landlords...
Unless you are living under a month to month agreement if you have a lease then these are usually set for a year, so the rent would be the same during the period the lease is in effect. You can have a lease for a different period, for example, six months, or 24 months, and that period would also be spelled out in a lease. Usually in the USA the lease period is for a year. Sometimes the tenant can save money if they sign a lease for two years. Sometimes students sign 3 month or nine month leases while they are in college, if the owner will agree to it. You pay more for shorter terms because when a unit turns over it's an expensive event for the owner.
Completely agree with you! In LA, there are paid lobbyists who are called "Community Activists" who actually meet with building owners and advocate for them to raise rents. Why is there no reporting on these individuals?
@@jeremytalbot8915 refs please. i need to check this out for myself. Where to start first?
I deal with this on the daily in Phoenix. People are coming together as families again, due to high rent. Multi-generational homes are making a come back.
Which is a good thing in a way.
Good
I’m a landlord and haven’t raised the rent on my tenants; however, I do understand why some landlords would need to raise it. Both insurance and property taxes have gone up drastically the past two years on my rentals, so and I can see why some landlords might make up those costs with raising the rent.
Cap those too
Cap property tax increases at 1% every 5 years
@@jonathanjones3126 So you want the government to cap their income........to pass a law to cap their very own governmental income......what are you a comedian...???
@@bogdan78pop Yes, either that or they can build more homes and apartments.
Based on this line of thinking the real issue here is to many people so we should cap population growth and population in cities to a number low enough so rents can be affordable. This is obviously a dumb way to think.
'THE RENT IS TOO DAMN HIGH" - Jimmy McMillan
Things behind the rent also matters as the price of the buildings is insane in places like New York city not to mention property taxes. Necessity apartments for low income jobs should be paying zero property tax. This will drop rent prices significantly. Of course we need to build more apartments too.
Good information. Makes us more aware of how others are also going through life.
Rent control is always a good idea and anyone who says otherwise has a stake in the rental market and is only looking for ways to squeeze more money out of their captive customers.
It’s not because someone making millions of dollars a year could be in a rent stabilized apartment for 40 years in NYC paying $500 for an apartment that is $4000 fair market rent. There should be more section 8 vouchers but the broad rent control/stabilization does not work
rent control is fine. The problem is some 90yo landlord kept rent at $700 for a 3 bed house x 20yrs and then dies. Landlord tries to buy said house, but has to pay 400K at 7% interest. At 20% down the basic payment is $2,200/month not including taxes, repairs, etc. So a 5% rent increase would be $735. It would take a lifetime to reach $2,200 at 5% increases.......... So no one would buy the house if the laws makes it hard to kick the tenant out. HOWEVER, owner occupied would likely be allowed to kick tenant out very easily, which promotes home ownership/a good thing/less rentals... BUT the tenant now has to go into the real rental market and pay say $2000 for a similar property. Decreasing building codes and incentivizing low income housing is a much better strategy. Where I live, you have to pay $5,000 permit fee just to add a bathroom/toilet if you want to add a rental unit to your property. If the fee was say $500, that would encourage people to turn their sunroom, etc into a little efficiency and rent for $700/month - thus creating affordable housing.
@@zacharyfair6738 Unfortunately in New York since 2019 it is extremely difficult if not impossible to evict for owner occupation. Can't do it if tenant is there for 15 years, has any disability (or claims one), or is over 65.
I agree fewer regulations/fees would spur more housing, NYC has the opposite- nobody wants to build because you have to make 35%+ of the units affordable housing.
There's got to be a better system than rent stabilization- its a lottery and the low rents aren't targeted to people who need them. In fact, section 8 waitlist is a mile long and we can't house enough migrants
Renter in a rent stabilized unit: I feel protected and can afford to live in my community
Experts: Rent control actually hurts renters and marginalized communities!
Hmm, right.
Rent control reduces the supply of available housing. It’s good for her because she’s already in a unit. Not so good for the people who are trying to find homes
@@privacyplease1556 It doesn't reduce supply because new building can charge w/e they want since they haven't had tenants yet.
They can charge what they want initially, however why would you invest into something that is locked at x% growth when you cannot control and reflect the rate of real inflation, not that nonsense the fed is pretending inflation is at. This will theoretically lead to less housing projects from developers.
They want rent control but don't want property tax control or insurance control. If the cost of property tax and insurance increases where do you think these cost will be past on?
Exactly....moratorium on rent/evictions but none on mortgage/insurance/taxes. Only the morons in the government could come up with that scheme
Your right
The property tax issue is entirely based on the state. It's not market driven, but government driven. Look at NJ for example. You'll pay $10k/yr in property taxes for a small bit of property but pay very little somewhere like Colorado. Insurance is definitely something that can be lumped in with Rent Control as it is market driven and has the same "money hungry capitalists take more money cuz they can" issue that rent has at the moment. Housing prices..... well let's not even start lol.
To get the rent control, the amount of money that tradesmen can charge for repair must be controlled as well. Yeah that sounds as ridiculous as rent control.
This is why RV living is so popular on RUclips lmao. I mean some RVs and vans are literally bigger than the shoebox apartments in NYC yet cost far less per month.
Cap the rents with different limits depending on area and then tax multiple home owners and foreign buyers who are simply parking their money overseas. This will eventually stop the buy to Let home buyers and restore the Normal Supply and Demand for homes.
Rent should never be more than 30% of your income. If not, legally there should never be more than a 3-5% increase in rent annually.
It should have never been LEGAL to let people go for years not paying too.
But no one had an issue there. So STFU now.
Notice how every state in yellow with rent control also has the highest incidence of rent burden.
I think the high rent caused the rent control laws, not the opposite.
That said I do agree that rent control is not a solution the rent cost crisis.
She's right about homogenous neighborhoods being bad. I wouldn't live in South Chicago (too poor, too dangerous) but I wouldn't live in Lincoln Park either (too uniformly rich, something phony and bland about it) even if I could afford it.
I would live in the Little Italy. Good food. Fun folks.
Yes. This shouldn't even be a question.
Rents are ridiculously high these days and something needs to be done about it.
Fake RUclips user accounts get unreasonably offended at the slightest passing mention of SOCIALISM, WOKENESS and EAT THE RICH.
All three are _required_ to put any dent in the issue, because the free market has already failed in providing the solution.
When we have HOAs, single family zoning, lot size minimums, etc that effectively act as supply caps, one of the main arguments against a rent cap (it discourages the market from increasing supply) becomes irrelevant
It doesn't help that developers don't see any money in lower income or apartment complexes. Why build apartments that will net you 2 million as a developer when you could put 6 $500,000 houses on the same land at a lower cost?
If you're gonna raise rent they should be required to check out salaries and credits to support it and improve the unit or complex. You can't justify raising rents and not giving tenants a return I their payments. And if it's taxes then it needs to be legally controlled
You have to be careful what you wish for, cause if they did that then they can justify placing the rent at more than what you can afford, making your own idea backfire against you
or people are free to move where ever they like and take demand away from any units that are "too high"
@Jason W easier said then done with almost every unit is charging in the same range
@@Blaze6432 negative. I can find you 15 states that have nice 1 bedroom apartments for 650. 550 for not nice.
Can afford that on any wage.
@@jasonw8497 if everyone did that then those prices would raise up and we would be back at square one. it also shouldnt be an option that millions of people need to move and be uprooted to solve people over charging on an essential commodity to survive in the world.
It’s tough being a renter. Luckily, my dad has two rent properties in GA and he charges below average because he knows the price hikes.
Government needs to build government owned housing like Singapore, Venice, etc. Private business will always do what they do and seek to maximize profit over people.
Capping rent would be bad for investors. There is still high demand for housing. Everyone is waiting for a recession, but we should accept that the economy is still great compare to 2020.
Landlord laws currently favor the most irresponsible and unskilled landlords, even to the point of being able to use the police as their private army to evict tenants. It is clear that the industry needs to be price controlled at the very least and needs regulations and way more licensing to prevent slumlords from amassing properties by taking away their power to rent them out if they cannot maintain them properly. Most landlords pass on the cost of repairs they never properly conduct to tenants, it is only right to treat them as fraudulent business owners.
Give ‘em he’ll sell it and own that!!! Let it our love if 🎉
Rents in Middle Tennessee are GOING UP not down
We need rent control in Miami fl BIG TIME $2500 dollars for a apartment unbelievable
you can find places elsewhere for 75% less.
@Jason W in miami where?
@@letit023 Not in Miami. Get out of there! Go elsewhere.
Nah no rent control lols, otherwise they would convert rental properties into expensive for sale properties leaving renters who can’t afford to get into that market no options 😢
Only works if they don’t raise property taxes
my lease is up next month and I’m actually excited 😅
If you cap rents - you're going have to get in line and wait for an available apartment.
Rent should be illegal. Landlording is just limited resource hoarding and hostage taking. If you don't live in or work a property, you don't own it.
What a lot of renters don't realize is when you vote for things like a 15 year bond for a school, that increases property taxes, which means it impacts your rent. Home owners perceive this more since they get the property tax statement each year and see exactly what part of their mortgage is going towards property taxes. Maybe part of the solution for rent control is to be more transparent about how that rent payment is being used so people realize their rent may be increasing for a reason.
Even so, as a home owner, I don’t mind the school bonds to a degree. If we let our schools fall apart that’s no good for our children and also no good for our property values. It’s a fine line to balance.
@@thisisbenji90 property tax is just part of the equation, maintenance is a huge cost. Recently spent $17k to reside and paint my house, along with replacing a leaning fence and deck that was falling apart. Now if I wanted to replace my aging furnace/water heater/air conditioning, that would be another $17k. Not to mention I still have the original roof on my 2005 house, so that is another large expense I can look forward to.
Renting is a huge convenience, and just like Starbucks, that convenience has a cost.
@@Tialian yeah I feel like renters often overlook maintenance cost. My mortgage, tax, and insurance bills are relatively affordable compared to local rents. However, I’ve paid a small fortune in maintenance bills over the last ten years. The monthly cash outlay is really kind of a wash or even in renters favor once you factor in repairs.
@@thisisbenji90 they need to get rid of public school. If people choose to have children then they should fund their education.
@@meep2253 hell no. That will bring more degenerates into this world. As someone who pays taxes. Absolutely not.
Yes, let's explore these rent control options. But a 5% limit just means 3 years down the line rent is still going to be up the same 15%. We could be building 20X the amount of homes around areas where prices are high to dramatically increase supply to meet demand and lower prices by building vertically. But we're not, and have made it ILLEGAL to do so in nearly all places in this country with single-family zoning, building setback laws, and minimum parking laws.
I sincerely hope you've actually used a *calculator* here, because your maths are off. 5% every year for 3 years means a 15.7625% increase. 10% over the same time period isn't 30%, but 33.1%.
@@johnnycheung5536 Lol thank you, yes the math was simplified to show that we'll still see at *least* a 15% increase.
Well people attempting to buy houses don’t want that. They want to live in these HOA regulated suburban culdesacs after turning 30 despite the fact doing so makes it harder for everyone else to do the same.
Rents are going down,but they make up the money with the damn fees that they charge. And in places with no fee controls/ rent control, damn it’s a bloodbath. You get taxed all this money but they give more money to Ukraine than to you.
I stay with family. Am I happy? Not really… I would love my own space.. someone is always home!!!!
I’m in school and I work full time. I only make 32k a year… it’s not enough to rent a place.
Supply will never catch up with demand when you have corporations buying up all the supplies..
It would if we made it harder for real estate investors.
I agree, we need to nationalize housing. Clearly the free market is unable to meet the need.
More housing. More density. We absolutely need more duplexes, triplexes, and apartment buildings
Rent control isn't going to fix the problem. The problem isn't the demand, its the supply. People will always pay what must to find a home. More homes will automatically lower the average rent.
Problem is the only homes being built have 5 bathrooms, living rooms next to family rooms, powder rooms and parlors. Affordable housing has been regulated out of existence
I guess a lot of high priced units will remain empty. Who will fold first?
@@pinacolada1393 And they say it's what the people want, but what about what most people can afford. There must be something we're not being told
Ban airbnbs & limit real estate investor purchases.
Rents are up purely out of greed, that's it. A massive amount (the majority, I'd say) of rental properties have been owned by their owners for well over 10 years, which means their mortgages have been the same low rate for at least that long, but yet they continue raising the rents even tho their costs are more or less the same. I used to live in an apartment building that had been owned by the same person for over 30 years, meaning his mortgage was either fully paid, or just a few hundred dollars a month. Their property tax was only a couple grand a year. So there was no need for them to raise everyone's rents by 10% the last couple years I was there, they were already making a LOT of money, they just got greedy.
Who's funding the studies that say that rent control is bad? 🤔
Basic economic, price control doesn't work. You don't need studies to understand this.
When property taxes are capped I'll support rental prices being capped.
You say rent is going down. I don't see it but ok. Income on the other hand has been stagnant for years. Minimum wage is years behind our economy. Unless wages go way up and housing prices drop dramatically, there will always be a housing affordability crises. That's one very big reason why there is so many homeless. If things don't change, there will be many many more homeless.
Back in the seventies I rented a place in South Lake Tahoe for $150 a month. Right now I know people in their thirties, all who have full time jobs, and their best option was to rent a four bedroom house in Tempe. Its crazy out there.
If rents are too high, cities, counties and states should build properties themselves. They have the big advantage that they usually own a lot of land. So they do not need not buy land like a private developer. That is not communism. Cities would still make a profit.
they already do. it's called the projects.
This is exactly how Vienna, Austria handles their housing. The average rent is €500 a month.
Me in a small town in the Midwest have never complained of prices 😂🤯
Here in Tampa🗣 invitational homes owns thousands of homes for rent . They literally reset the market and apartments are now pushing 2k for a 2 bedroom and a studio is squeezing 1700 rn . It’s beyond bad
I live near a city that has a lot of section 8 properties. The city is filled with high crime and parts of it are where you don’t venture because of it. The stigma of poor brings crime needs to be addressed before the large majority of people would support this. I live in an upper middle class town that is a suburb and I’m sure they are doing everything they can to keep people out. Even the city that has a lot of section 8 apartments are demolishing them and making way for expensive houses and condos which is sad because they are going to get pushed to the next town that doesn’t have the resources. I don’t know what a proper solution would be that could address this.
A big reason why the US just can't have nice things is because of our culture of "crime and cool." The US has very high rates of single motherhood and drug use.
@@ValisFan3 I’m not sure if you live in another part of the world other than the United States, but where I live, we are 2 hours from a major city. Our main city you can get somewhat affordable housing. A suburban town is trying to mimic places like dc with having everything at your fingertips within 10 min or less and all on one main road. This has town homes going for half a million where the surrounding areas you can get an actual house for around 300k.
@@thegothicgodfather Not the poor. The poor have subsidies that keep them dependent, especially the unemployed poor. The working middle class is getting squeezed.
ask why isn't buying a house cheaper if rent is so high
Because it isn’t.
In Colorado, houses that used to be $250k about 7-8 years ago are now $550k-$600k, no joke! It’s gonna crash cause there’s already a ton of ppl on the brink from buying at the peak and over their budget
Their lying about rent going down I rented a nice 3bed house last year for 1400$ a month I can’t find one bed apartments for that this year a3bed house I can’t find under 2600$ that’s almost double
Why would having rent going up to any amount be a good idea from a basic common sense standpoint? Especially since we know wages rarely go up. I don't get why people are so slow
We tried rent control already in the 70s during the last inflation crisis. We repealed that law for a reason.
As a born and raised NYer, I'm all about the neighborhood but I'm dealing with this from both sides now, as a reluctant landlord and as someone who can barely afford the rent in NYC. I rented out my Brooklyn apartment to take care of my parents for the past 2 years, not to make a profit. The tenants act like I'm destroying the neighborhood, even though I charged only $1,800 for a 1BR and didn't raise rents during the pandemic because it didn't feel right to me. Similar units in the building go for over $3k, for reference. If I moved back to NY today, I wouldn't even be able to afford the rent. I'm basically waiting for the new tenants to finish their lease before I move back.
I do think there is room for small landlords who charge reasonable rents that cover mortgage, maintenance, plus a margin to cover the risks associated with ownership. Unfortunately, I think the combination of lack of supply and large corporations hoarding properties exacerbates "us vs. them" dynamics where all renters are lumped into one category and are pitted against all landlords in another, when there is much larger spectrum within both groups.
I hope your tenants leave peacefully when their lease is over.
Ny landlord is risky. You can't ask the tenant to move out despite the lease expiring or tenants don't pay rent.
Because of my job, I had talked to people who paid $500/$750 a month rent due to being long term tenants under rent control in Los Angeles. Most of them weren’t putting extra aside for raining days or were content to work low wage jobs. When aging mom and pop landlord sells apartment to investors, the tenants were forced to move out under the reason of rehab (they can move back but must pay market rent to live in a technically brand new modern unit).
Yup they were being idiots. Not living below their means even though they were so lucky to have it. They can't budget and understand the difference between needs vs wants. Their own problem.
Yes, this is allowed under "The Ellis Act" and its a real problem. Someone makes a huge amount of money off those deals and then there are elderly tenants who are displaced. What happens to them? There is no reporting on this either.
As long as lobbying is part of the system, don't bother convincing the politicians to put the people first over greedy corporations.
This is stupid. People with college education, working full-time, at an hourly wage, cannot afford rent anymore. If yall don't slow down the rental increases, you're gonna have to develop welfare programs for full-time school teachers, librarians, daycare workers, and veterinary technicians because wages are not increasing at the same rate as rent. I have a friend who makes more money each month than I do, working full-time in a lawyer's office(obviously not a lawyer) and she's homeless because she can't find a decent place within her budget. I got kicked out of my last two apartments because they both raised the rent by $400/month and I couldn't afford the increase. I was almost homeless, but I managed to find a brand new development that was desperate for new tenants so they cut me a break. This is a very serious problem for hourly wage workers and it's the reason that many businesses are short staffed. Nobody pays enough to afford rent.
I don’t know where we all are going with this. At this point, more people will be living in the streets. For the most powerful and richest country in the world, it’s just sad! The elite doesn’t think of the rest. Capitalism at its finest!
There are plenty of places that are affordable, even at minimum wage.
Ex $650 month 1br 750sq ft apartment available in 15 US states.
@@jasonw8497 Liar.