Why is the Rent so Darn High?

[San Lumen]

I often wonder why in so many cities across the United States the rent is so high and keeps going up? It doesn;t make sense to me. Part of the problem is landlords are getting greedy. In addition wages are not keeping up with cost of living and higher wages are needed like what that wonderful CEO in Seattle did. Secondly it seems all developers build is luxury housing for the rich who don't even live there full time, and not enough affordable housing and they wonder why there is a housing shortage and income inequality is growing. Luxury Housing development should cease and only affordable housing built. There should also be rent control laws that apply to everyone. Don't get me wrong i don't mind rich people living in cities but they shouldn't get special penthouses built just for them. Is it greed rent prices are so high? And developers care more about the rich then the average person? Your thoughts?

[Souseiseki]

because they want to make as much money as possible and a lot of people have no choice except pay or be homeless

[Mysterious Stranger]

*damn

[San Lumen]

because they want to make as much money as possible and a lot of people have no choice except pay or be homeless

Then that is greed and there should be rent control for everyone

[New Werpland]

Rent control kind of made the Bronx the way it was in the 70s, just being the devil's advocate.

[San Lumen]

Rent control kind of made the Bronx the way it was in the 70s, just being the devil's advocate.

In what way?

[Diopolis]

Capitalism

[Idzequitch]

Inflation is a factor. Far from the only factor, and we mustn't discount greed, but it's one of many factors.

[San Lumen]

Inflation is a factor. Far from the only factor, and we mustn't discount greed, but it's one of many factors.

How is inflation a factor?

[Aquitayne]

The reason you see rent being so high in certain areas, especially cities like New York and Los Angeles, is because there's nowhere else to put apartment buildings. Especially New York, where every inch of land is at a premium, and there is only limited space for an almost unlimited demand for apartments. The reason you see the rich getting more apartment buildings and luxury condos everywhere is because they can afford them. "Affordable housing" is a myth. Affordable housing equates to whatever anyone at a given price is willing and able to pay at that price for a product, in this case an apartment.

Simple supply and demand, economics at its core.

[San Lumen]

The reason you see rent being so high in certain areas, especially cities like New York and Los Angeles, is because there's nowhere else to put apartment buildings. Especially New York, where every inch of land is at a premium, and there is only limited space for an almost unlimited demand for apartments. The reason you see the rich getting more apartment buildings and luxury condos everywhere is because they can afford them. "Affordable housing" is a myth. Affordable housing equates to whatever anyone at a given price is willing and able to pay at that price for a product, in this case an apartment.

Simple supply and demand, economics at its core.

Who cares if they can afford it? Why are are building just for them and then they don;t even live there full time? Seems rather selfish. Why not have rent control laws that apply to everyone?

[BK117B2]

Rent prices are at the intersection of where people are willing to build/manage rental properties and where people are willing to rent them.

Rent control is the notion by some people that the government should help them get freebies

[BK117B2]

because they want to make as much money as possible and a lot of people have no choice except pay or be homeless

Then that is greed and there should be rent control for everyone

Um, the entire concept of rental price controls is seeking government support for personal greed.

[BK117B2]

The reason you see rent being so high in certain areas, especially cities like New York and Los Angeles, is because there's nowhere else to put apartment buildings. Especially New York, where every inch of land is at a premium, and there is only limited space for an almost unlimited demand for apartments. The reason you see the rich getting more apartment buildings and luxury condos everywhere is because they can afford them. "Affordable housing" is a myth. Affordable housing equates to whatever anyone at a given price is willing and able to pay at that price for a product, in this case an apartment.

Simple supply and demand, economics at its core.

Who cares if they can afford it? Why are are building just for them and then they don;t even live there full time? Seems rather selfish. Why not have rent control laws that apply to everyone?

Seems selfish for people to build the properties they want rather than building things for charity? How many apartments have YOU built and managed in New York offering below market rents?

[Llamalandia]

Mortgage crisis has banks afraid to lend and people afraid to move from renting to buying a home. Once the housing market rebounds rents should come back down. In larger cities they are always fairly high though. Limited space and you have to pay for the privelege of city living. Move out to more suburban rural lower population parts of the country (Ie fly over country) and you will find the rents are largely more reasonable. Still slightly elevated but Nebraska for instance is much cheaper than say NYC

[Idzequitch]

Inflation is a factor. Far from the only factor, and we mustn't discount greed, but it's one of many factors.

How is inflation a factor?

If the value of the dollar goes down, the number of dollars you have to use to buy something goes up. Thus why you can no longer buy a hamburger for a dime, like you see advertised on signs from the early 20th century.

[Pope Joan]

Land is a good investment because it never goes away, it never diminishes (except for shore damage).

Our legal systems are more designed to protect the sanctity of property than that of human life itself.

NYC looks attractive with many jobs paying well; then you have to find an affordable place to live. Good luck with that.

The rents are low in Hornell, but try finding a decent job there.

[Wallenburg]

Collective housing. Just fucking do it.

[Diopolis]

The solution is to have house-zeppelins the same way some people have houseboats. *nods*

[Saint Kitten]

This thread reminded me of this.

[Caninope]

It seems, the rent is not really as high as we might want to think that it is- I've prepared an imgur gallery with a few different transformations of the CPI-U, the CPI-U's rent component, and the Case-Shiller index, that can be found here. Also, I know it's bad policy to set the axises in the way I did, but let's overlook that for a minute, shall we? Mostly because I don't want to go through the process of uploading them again.

The big takeaway from this is that rent isn't really that high- it's following the CPI. What's far more interesting is the fact that houses (despite being considering fairly illiquid) seem to be far more liquid and less subject to price stickiness/nominal rigidity than rents do. That seems like something someone should look into (the reasons seem obvious, but I'd be particularly interested if it had any noticeable effect on consumer behavior), but besides that, instances of "high rent increases" seem predominantly limited to New York (especially Brooklyn and Manhattan) and the Pacific NW/California (especially San Francisco) in the US, which are likely connected to increased prestige and urban revival effects in those areas.

[Diopolis]

It seems, the rent is not really as high as we might want to think that it is- I've prepared an imgur gallery with a few different transformations of the CPI-U, the CPI-U's rent component, and the Case-Shiller index, that can be found here. Also, I know it's bad policy to set the axises in the way I did, but let's overlook that for a minute, shall we? Mostly because I don't want to go through the process of uploading them again.

The big takeaway from this is that rent isn't really that high- it's following the CPI. What's far more interesting is the fact that houses (despite being considering fairly illiquid) seem to be far more liquid and less subject to price stickiness/nominal rigidity than rents do. That seems like something someone should look into (the reasons seem obvious, but I'd be particularly interested if it had any noticeable effect on consumer behavior), but besides that, instances of "high rent increases" seem predominantly limited to New York (especially Brooklyn and Manhattan) and the Pacific NW/California (especially San Francisco) in the US, which are likely connected to increased prestige and urban revival effects in those areas.

So, gentrification and the limited effect of financial dickitry on apartment prices?
I'd hoped it was lack of zeppelins.

[Gauthier]

Jimmy McMillan, is that you?

[Communist Victoria]

Landlords are greedy. Mine just raised the rent by $10 for replacing a dishwasher that didn't work well before we got the house. It is currently $265. And that is quite high for my town.

[Llamalandia]

The solution is to have house-zeppelins the same way some people have houseboats. *nods*

That sounds freaking awesome actually. I mean minus the whole firey death potential aspects but I think the Hydrogen can just be replace with some He. Still, maybe not the best choice for anyone who sleeps walks.