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Rising Rents Are Pushing More Tenants Past the Breaking Point

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Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#301
post #201

Earlier quoted context omitted.

Mental health is one reason why people are homeless but it's not the only one. The reasons you're bringing up are strawmen at best. The people who are homeless or on the brink of homelessness are not complaining about artisanal food stuffs. In Oakland, a family of 4 has been living in a single family home for 15 years. This year, after new owners purchased the property, the rent went up 100% in one year. Needless to…

"If you want to understand the severity of the situation, I suggest just literally googling "homelessness housing crisis bay area" and read all the both qualitative and quantitive reporting done on the issue." As a resident of the bay area I assure you that I read about this topic every single day - and consume a wide range of reporting and editorial.[1] "... the rent went up 100% in one year. Needless to say, they a…

> I am open-minded about the notion of housing as a human right. I completely reject the notion of housing wherever one most prefers[2] as a basic human right (or any kind of right whatsoever).

I won't make the overly broad claim that nobody ever demands housing in popular districts, but I don't think this reflects the reality of many housing decisions; usually it's about convenience; convenient commute to work, convenient access to schools and hospitals, convenient shopping for necessities (food, etc), convenient utilities. I know that some people get a thrill out of living in hip areas (my brother lived in a popular section of Chicago for years and paid outrageous prices for a hole in the wall), but more often than naught people just want a convenient location with the ability to perform their daily tasks without undue stress.

Living abroad, it's possible for me to have an hour commute because the public transportation is reliable and cheap and there are ample options for shopping at virtually every transit stop. This was not the case when I was in the US and my car was destroyed by a drunk driver; having lived in Tacoma, I enjoyed their transit system, but it was not convenient, as missing your bus even slightly after peak hours meant a 45 minute wait in the rain just for an hour commute and then another 15-30 minutes walking.

The cost of living in the US isn't just reflected in the rental price on the apartment or the cost of the house/condo; it's also with how livable the area actually is and what you need to live well in an area.

My experience is that typically this is what people are frustrated with and concerned about, not so much having fantastic apartment or homes at the coolest place. Bringing up such a concern just seems like focusing on an edge case and diluting the main concerns when it comes to difficulties with housing. I was lucky enough that the worst rent increases I had were to the tune of $30 every other year - that was as simple as deciding not to get takeout once or twice a month when I may otherwise had done so. This was in Tacoma in a relatively stable part of the city; but as Tacoma continues to try and shake off it's former reputation, many of the neighborhoods at the time were being bought up and rebuilt, and I had friends who lived near such areas whose rent shot up much more, and what was a place where they could live rapidly became beyond their means and they had to seek new housing. It's easy (relatively) to move when you have even a small amount of financial freedom, but when you are restricted financially, adjusting to rapidly increasing rental prices is very difficult. It has long reaching effects and leaves an already trouble part of the population without options as they are forced to move further and further away from the things they depend on into situations which aren't good for their situation.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#302
post #107

Earlier quoted context omitted.

Yeah, it's a stupid situation. There's a property transaction tax, "stamp duty", which can be surprisingly high ( http://www.knightfrank.co.uk/stamp-duty-calculator ) but of course that really ends up protecting incumbents rather than taxing them.

Why would you want to tax sales of property? That just makes the market more illiquid, as well as making it more expensive to increase density (because you now to pay an extra a fee if you want to buy a single family house to replace with an taller building).

Yes, it's a bad idea. It used to be a small tax on high-value transactions only, but just recently it has been greatly increased.

The UK could do with a proper property tax, but since homeownership is the national religion that's not going to happen.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#303
post #222

Earlier quoted context omitted.

It's not "housing where one most prefers" in this instance, it's "housing where you're already lived for years, and where your children go to school".

Honestly, counting on being able to rent a single family home for an extended period of time is insane. That they were able to live there for over a decade makes them an outlier. Most single family homes are owned by individuals. Individuals and/or their heirs often need liquidity, so rental houses are way more likely to change hands than apartment buildings.

Who said they were counting on it? The point is that this is a problem that could be ameliorated by simple regulations. In NYC, for example, it would not be possible to increase someone's rent by 100%.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#304
post #70

Earlier quoted context omitted.

The core issue is real estate as investment regardless of where it's coming from. Right now the most visible are overseas Chinese people with money buying property, but REITs have been picking up rental property for ages, and there are also PEREs (private equity real estate firms). If governments are to serve their people, then they should curtail this speculation. Of course in America, corporations are people.

In English common law corporations are people, hence the name. They are a synthetic "body" for business purposes. This isn't a new concept created by Citizens United.

It's usually better to say that they have "legal personality". They're not people, but like people, or charities, incorporated associations etc, they have an attribute that gives them legal existence a court will recognise.

What Citizens United established was that free speech applied to legal personality generally, not humans in particular. Folk forget that this includes organisations they like, as well as the many they don't. It's easy to dislike the situation (as I do), but trickier to explain how to define a way out of it.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#305
post #36

In large cities across the US (and probably most of the world), there is some very large scale foreign speculation in the housing market going on. This is leading to rising rents and rising home prices. In Seattle, for example, many (newly) wealthy Chinese people are buying houses purely for investment purposes. I know some of them. One of them has purchased 10 houses, and lives in only one of them (when they are in…

>To me, this is absurd. This is a human rights issue (homelessness is growing by a large amount).

The US has traditionally put free markets above human rights.

(In lip service, that is -- the US had plenty of protective taxes and tariffs early on).

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#306
post #179
post #36

In large cities across the US (and probably most of the world), there is some very large scale foreign speculation in the housing market going on. This is leading to rising rents and rising home prices. In Seattle, for example, many (newly) wealthy Chinese people are buying houses purely for investment purposes. I know some of them. One of them has purchased 10 houses, and lives in only one of them (when they are in…

I sincerely doubt foreign purchases are the main driver of rent increase, and no study has ever demonstrated as much. The anti-foreigner mindset is extremely dangerous. Rising rents are almost entirely because of local restrictions on creating more housing. The beneficiaries of restricted supply are existing owners and landlords.

>Rising rents are almost entirely because of local restrictions on creating more housing.

If those restrictions are a constant, then foreign purchases can still play a huge role in pent up demand.

Plus, there are limits to how much you can (and want to) built. You don't want to cover every inch of land with buildings, or grow into sprawling third-world style megacities...

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#307

Earlier quoted context omitted.

Because the community has agreed to honor their exclusive real property claim, even if another person might have made better use of it . Property owners do occasionally have their property seized by the community that it may be used more appropriately to the community's desires. It may be by eminent domain, or civil forfeiture, or adverse possession, or by regulatory taking, or some other means, but it is more likely…

I'm having trouble understanding your comment. The entire principle of private property ownership on which (arguably) our entire civil society and economy is based is that one may use said property as one wishes. It doesn't really matter if another person might have made "better use of it". The only opinion that matters on how the property might best be used is the person who owns it. It's not a community decision, e…

Private individual ownership has never been absolute for anyone, except for those despots and monarchs with a large and loyal military. There have always been ways for a large group of people to strip an intransigent and selfish person of his property, and some of those ways don't involve murdering him in a public and humiliating way. If nothing else, a series of successful civil suits can force the transfer of real property to the plaintiffs.

Eminent domain is one establishment-sanctioned way in the US, wherein the owner is forced to sell to the government. The purpose is supposedly to enable construction of public infrastructure such that private owners cannot obstruct for personal profit, but the controversial Kelo v. New London case involved the use of eminent domain to transfer property from one private party to another.

If your style of ownership is a clear burden on the surrounding community, they will eventually strip you of your property. But the bar is set rather low, even for the minorities in a racist community. As long as you pay your property taxes, obey the most literal interpretation of the law, and don't allow the property to look too bad from the curb, people will generally leave you alone.

So the duty of the landlord is to not be such an enormous ass that the community notices it, and comes after them. It isn't difficult, let some people can't even manage that.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#308
post #178

Earlier quoted context omitted.

The monthly mandatory payment on my mortgage is now a lot lower then typical rent (I have freedom to pay more if I wish to). It was roughly same as rent for few years, but it went down as I paid the debt. If my salary would go down to half and my husband would got unemployed, we would still be able to pay it. You don't have to buy the most expensive flat there is in the city. And if we were not, that would still be n…

What I'm describing is a generalization since you asked about the differences in risk between renting and ownership. It sounds like you have taken a series of (wise) steps to significantly limit your exposure to the risk involved with property ownership. This doesn't make the rule invalid though it makes you the exception to the rule. > In really really the worst case, you move to that lower cost flat and have bank t…

You can in the US - most mortgages are written in a way that let's you walk away from them if they are underwater.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#309

Earlier quoted context omitted.

Funny, I had an airbnb(I hosted) in nashville's downtown that made that rate look dirt cheap. Reason? Outdated zoning laws and hotels were slow to catch up with the tourist industry. It was crazy watching my nearby competitors(the major hotels) adjust prices like the stock market..... $1800 a night for the last suite at the sheraton up from $250-500 normally. Bonoroo and Country Music festival held the same week is w…

Why did you sell or stop hosting?

I moved.... Plus the hotels caught up as did the housing shortage.

2 massive hotels went up downtown and another third is coming online soon.

Sank my new years and March madness profits.... It was a good run.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#310

Earlier quoted context omitted.

Eh.. I saw it more as a symptom of humans breeding. Human population has always been bound by some constraint, and now it seems that shelter is more of a limiting factor than food supply, in western countries at least. That, and a cultural shift toward wanting to live in cities, even though many of these financially struggling millennials would do just fine financially in more distant suburbs.

It's restrictive zoning laws. Home and property owners have a zeal for politics unmatched when it comes to keeping values up. The movement away from cities had a lot of reasons that have been solved(jobs came back, riots, red lining, less pollution, less crime) so I'd say the cultural shift was justified to return. Commuting sucks too.

High density zoning is only a short term solution, and it seems with current policy enactment speed, technology (and especially building regulations), demand will always outpace supply for the foreseeable future.
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