It's pretty bizarre how many people simply don't believe that supply and demand are relevant to housing
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4266459
https://www.theatlantic.com/ideas/archive/2022/11/us-housing...
Apartment rent growth is declining, shifting the market to the tenant’s favor
51–60 of 93 posts
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#52https://archive.is/y28IG I've been looking for a decent 1BR in Manhattan. For something clean and decent, the floor is $4,500. The 40x rent annual income requirement by many landlords, one needs to be making $180,000. sigh.
Cheaper rentals are often not posted online because of the time and cost required. Irrespective of that, plenty of Manhattan 1 bedrooms are well below $4,500, including this one in a building with a 24-hour concierge, air conditioning, stainless steel appliances, and in-unit laundry: https://www.relatedrentals.com/apartment-rentals/new-york-ci... ($4,150)
Thanks... though the listing confirmed what I said. :-(
https://www.relatedrentals.com/search?city=46&field_line_spe...
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#53I wish the government would do more to control this terrible situation. If you can't afford a home with a 40 hour job, something is sick in this country. Even an apartment is beyond reach. Blackrock and Vanguard are blights on this planet.
Big investors are not helping the housing market. But after years of telling people that 'housing is a great investment' and enacting all kinds of policies to jack up prices... are we surprised they piled in?
They're kind of scapegoats though: https://www.theatlantic.com/ideas/archive/2023/01/housing-cr...
They even come right out and say this stuff in their SEC filings, that if markets stop being supply constrained it'll negatively impact their investments.
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#54Earlier quoted context omitted.
Are you sure? Restaurant labor usually works out to a small percentage of the price of the food. Besides that, people could afford pizza back when minimum wage was much higher adjusted for inflation.
I think the GP meant that their pizza job paid so poorly, if their wage had been increased enough for them to be able to buy a home, the cost of the pizza itself would have to be increased quite a bit in order for the pizza shop to stay afloat.
But then how much would you pay people in the skilled trades (plumber, electrician, framer, architect, civil engineers)? What would be the cost of housing after the dust settle?
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#55The opposite news from Boston... https://www.boston.com/real-estate/the-boston-globe/2023/06/...
Having lived in Boston, I can say that the city is way overpriced. You may argue that rent is in line with what people are willing to pay for it and that may be true. However, the city is failing its residents who have no protection against unreasonable increases (due to a state law) and new development is nowhere near strong enough. At least in cities like SF, Honolulu, and NYC you trade affordability for hire wages, natural beauty, and nightlife. Boston is nothing special in comparison.
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#56Earlier quoted context omitted.
Why would that affect anything? Reduced demand for house purchases should result in higher supply for rental housing as owners rent it out instead of sell.
Because reduced demand for home purchases presumably means increased demand for renting. People have to live one way or another.
Additionally the driver of rent is ultimately an arbitrage argument. If I can buy a home and rent it out for more than the prevailing mortgage costs then rents must drop and home prices must rise, otherwise people will buy more property to rent out. Likewise the opposite is true. Home prices are dropping, so rent should drop too. Except for the fact that leveraged home costs are rising due to interest rates rising quickly. The article mentions some regions are seeing lots of new supply on the market so they can definitely impact the dynamic - but I don’t think coastal cities are seeing any new supply to speak of, so I doubt seriously rents are dropping in those cities. I would expect as costs to buy go up, rents will also rise assuming supply stays constant.
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#57Earlier quoted context omitted.
Why would that affect anything? Reduced demand for house purchases should result in higher supply for rental housing as owners rent it out instead of sell.
Because reduced demand for home purchases presumably means increased demand for renting. People have to live one way or another.
I assume it sort of balances out, if properties don’t sell, they may go on the rental market. Another thing is that the renters pool has some elasticity built-in: renters may move with relatives or roommates/significant other.
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#58I wish the government would do more to control this terrible situation. If you can't afford a home with a 40 hour job, something is sick in this country. Even an apartment is beyond reach. Blackrock and Vanguard are blights on this planet.
1031 exchange Capital gains exemption Mortgage interest deduction 30 year fixed rate mortgages Depreciation deduction Opportunity zones The list seems to go on forever. The government uses tax cuts to juice real estate investment at everyone else's expense.
If all these goes away, would there be more supplies of housing or less?
Does the person who take advantage of all these more likely to leave a housing unit vacant or make it available for other to rent?
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#59https://archive.is/y28IG I've been looking for a decent 1BR in Manhattan. For something clean and decent, the floor is $4,500. The 40x rent annual income requirement by many landlords, one needs to be making $180,000. sigh.
Come live in Brooklyn Heights. You can be in Manhattan in 5 minutes. I just moved out of a rent stabilized apartment that was $2450 a month for 11 years. There are many similar apartments and they can't raise the rent to "market rate" without making major improvements.
Thanks! I do like that area. :)
Re: Apartment rent growth is declining, shifting the market to the tenant’s favor
#60Could someone please forward the memo to Vancouver? https://www.zumper.com/rent-research/vancouver-bc
Just wait. In 2025, all the five year terms for those ultra cheap pandemic mortgages will reset.
When that starts to happen the Bank of Canada will just lower interest rates to 1% again. The Canadian economy relies heavily on the real estate shell game; they're not going to risk blowing it up. (Maybe they should, and weather the pain so that the economy can go back to producing tangible value again, but that's not how politics works.)