Wages in america are extremely high, its just property prices are even higher.
Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
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Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#52Earlier quoted context omitted.
It’s that wages have not risen with inflation.
Aside from less than a quarter point (0.24) from Covid, wages have in fact risen with inflation and that small difference is also likely to disppear soon. https://usafacts.org/answers/are-wages-keeping-up-with-infla... It is in fact rents, especially with mandatory add-ons. The actual cost of renting a place is a lot more than the direct rent payment.
Frankly the statistics do not feel right - I remember jobs that were easily found at $15 per hour in 2012 and cost of everything was insanely low. One bedroom / 750, McDonald burger, $1, McDonald soda $1, a pack of beer $7. Now eveything is easily double or triple and the basic jobs are still at $15.
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#53Henry George was right about everything
Always has been. You have to suck the money out of inefficient real estate to compress their margins and make it a commodity (=Georgism) or you let real estate bleed your economy dry (=what every Western country is doing today).
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#54Landlords are the least productive class in society, and it's not even close in terms of ranking.
I guess it's time to abolish apartment buildings then. And how dare someone want to rent a house/condo/apartment when they only expect to live in a city for a couple years.
Landlords do not create apartment buildings. Developers do that. Developers should get more reward for developing things and landlords should get less.
Landlords do not manage properties. Property managers do that. Property managers should get more reward for managing properties and landlords should get less.
Sometimes these are the same individuals and they lump their fees into a single check, but these are not the same jobs and they should not be treated the same.
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#55Earlier quoted context omitted.
In 1970 a $300/month apartment would be ~$2000/month in today dollars. I do think rents are too high as productivity and supply chains are much more efficient. I think in the 70s we were still using black pipe for gas, iron septic lines, and copper pipes for water. But, I don't think new builds or renovations are cheaper inflation adjusted (harder to estimate). Cost of money (inflation), building, and maintenance is…
How many apartments were $300/m in 1970?
Probably not many. The median rent reported in the census was 108.
Per state breakouts: https://www2.census.gov/programs-surveys/decennial/tables/ti...
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#56Wages in america are extremely high, its just property prices are even higher.
Go tell that to Oklahomans and others still making a minimum wage of $7.25 an hour
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#57Earlier quoted context omitted.
In 1970 a $300/month apartment would be ~$2000/month in today dollars. I do think rents are too high as productivity and supply chains are much more efficient. I think in the 70s we were still using black pipe for gas, iron septic lines, and copper pipes for water. But, I don't think new builds or renovations are cheaper inflation adjusted (harder to estimate). Cost of money (inflation), building, and maintenance is…
How many apartments were $300/m in 1970?
Very few, 300 USD was considered rather high in my area back then, maybe a house would be 300. That area is now in the top 5 expensive areas to rent.
In the late 80s early 90s I was paying 350 USD for a 2 bedroom.
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#58I think right now, the only place I can afford a house (in a place I would actually like to live in), is in some derelict, abandoned Italian town in Sicily, or something like that.
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#59Wages in america are extremely high, its just property prices are even higher.
Hint: property prices are set by wage levels
Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore
#60Again seeing some blaming poor immigrants for this in the very first answers. Meanwhile, where do the money for OpenAI and the SpaceX IPO comes from? Who got hold of so much money? How did they got hold of it? And here's the killer question: would they, and the rules and system supporting them, change in any way if there were less immigrants?
What do you mean? Trillions move through the stock market every day from pensions, mutual funds, foreign governments, 401ks. And professional trading.
I’m sure many immigrants had money on the IPO as well?