I just want to say I appreciate that you have posted the archive link instead of the original link. Cut out the paywall, thanks.
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My rent’s going up $275/mo in September, so I sure hope this gets under control soon.
No they won’t. Rental rates may flatten out or even fall slightly, but it will not be some sort of benefit for renters. The vacancy rates are still far too low for that in most cities.
Yeah, with vacancy rates being so low the rates flattening seems to be an indication that landlords have squeezed almost as much rent as tenants can bear.
If milk shot up to $15/g before flatlining I wouldn’t think that the cost would soon decrease, but rather that nobody would buy $16 milk.
Nope, not until we have social housing making it’s return. There are a lot more vacant homes than there are homeless people.
Would like to buy, but many properties are over priced, interest rates aren’t favorable, and don’t have the money for the required down payment, so stuck renting, and landlords/leasing agents are taking advantage. We need rent control.
Unfortunately, rent control does have issues in the long run. Less profit for landlords does mean less money invested in new construction by people looking to make a profit. Less new construction eventually leads to shortages. It’s great for those who already have housing, but those searching for a place to live have it more difficult under strict rent control. Though with how long construction projects take from planning to opening, this effect takes decades for any change to be noticeable.
Hypothetically, could a city or other regional government, or even larger scale one, create a state run development company, under mandate to build up the housing supply in a given area even if investors won’t do it?
Yes, but without money from investors they’d have to cover the construction costs from taxes, so it’s not free either.
And government run initiatives have to be very careful with how they set their goals. If the legal mandate is to maximize the number of apartments constructed, and the people in charge are rewarded based on the number of apartments they created on paper, then the result will likely be the bare minimum of what counts as “apartment”, even if it’s not something most people would want to live in. That means that government initiatives need to specify in high detail what the quality of the apartments should be.
Investors have the goal of getting their money back through rent, so they will usually ensure that what they pay to build is something people will actually want to live in and pay money for. If the housing shortage is severe enough they too can get away with pretty crappy places, but if there’s enough housing available that renters can be a little picky, any investor who built bare minimum apartments would regret their choice.
We need more housing.
We need landlord control. Y’know, like pest control.
Duluth, Minnesota, tried to do some control for absent landlords, requiring that landlords live within or have a representative within X miles of the rental. Unfortunately, all that did was make management companies more overbearing when owners turned to them to be the local contact.
Typical WSJ. Rents stopped skyrocketing, so renters have the upper hand. Like it’s a surprise that there is a limit to what people can afford to pay?
Classic gaslighting.
Remember that article about how “millenials aren’t drinking as much and killing beer sales at festivals”? How about you look at alcohol prices and average wages?
Oh, thank goodness, if this is the actual trend. We’ve been debating moving, but rental markets have been ludicrous everywhere.
Interesting article. I appreciate that it included the example of a couple in Jersey City, NJ being forced to move because of increasingly exorbitant rent. That article could have been about me personally. I lived in a shitty overpriced 1br apartment that overlooked the Holland Tunnel. Rent was around $2200/year, but they wanted $2700/year for us upon renewal, and after we said no, they upped it to $2900/year when offered to the general public. This was June 2022, and a quick look on their website suggests similar units sell for $3300/month now. I make a decent living, but that increase was way too much for me. That was the final straw to get me to move out of NJ entirely and down to the relatively more affordable DC area. It was similar for many of my neighbors. The NYC area will always have a special place in my heart, but there’s only so much you can take before you begin looking to alternatives.
