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Rents fall in most U.S. metros since 2023, demand struggles to match supply
31–40 of 57 posts
Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#32what's a good way to reconcile this with the common narrative that there's a big housing shortage?
Rents are still too damn high. The shortage will be over when rent is less than 10% of take home pay for a lower class laborer in NYC.
If there wasn't anyone renting at the high prices, then they would sit empty, but someone must be renting them. Otherwise the price would have to come down or they stay empty.
Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#33what's a good way to reconcile this with the common narrative that there's a big housing shortage?
This is a fantastic question, and sparked a lot of thought.
The story shows 28/44 metro areas had decreasing rents last year, so 64%. That still means that the other 16 had rising rents.
My guess is that rents lag inflation quite a bit, so the (slight) decrease is basically reflecting the drop in inflation over the past couple years. So, yes rents dropped 1% last year but they’re up 20% over 5 years.
I do believe that the US has a significant shortage of housing that is high quality in city centers. Families don’t want to live in apartments in this country so they end up living 20+ miles from their work and spending a huge amount on transportation.
Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#34Earlier quoted context omitted.
By 1933 [Social Democrats in Vienna] had built almost 60,000 dwellings, mostly in huge apartment houses... These were built so efficiently that the average cost per apartment was only about $1,650 each; since rent was expected to cover only upkeep and not construction cost (which came from taxes), the average rent was less than $2.00 a month. Thus the poor of Vienna spend only a fraction of their income for rent, les…
> rent was expected to cover only upkeep and not construction cost (which came from taxes) I think he meant non-subsidized rents.
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Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
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Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#36[deleted]
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Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#37what's a good way to reconcile this with the common narrative that there's a big housing shortage?
There's a housing shortage in places like California where people aren't allowed to build. There's no housing shortage in places like Austin, Texas where people are allowed to build.
https://www.newsweek.com/austin-housing-market-trouble-20625...
"Just because home prices are coming down and there are more listings, doesn't mean that prices are affordable. So there's still a supply problem in cities like Austin," Turner said. "I think only 25 percent of Austinites can afford to purchase a home at the median home price."
Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#38Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#39Earlier quoted context omitted.
That's... the definition of shortage
Much of the narrative has been that the problem is because nimby boomers won’t allow apartment complexes in single family neighborhoods, there are simply not enough apartments.
We've been rewarding voices who want to lock the gate behind them. They want their area frozen at the moment they moved into their home.
What we learned is that those voices are catastrophic for entire classes of people - like new families.
Re: Rents fall in most U.S. metros since 2023, demand struggles to match supply
#40Considering the precipitous fall in border crossings since Trump took office, I wonder how the fall in immigration is tied to the fall in rent. Illegal immigrants still have to live somewhere, they increase the demand for rental housing, boosting rent prices.