Is it wrong of me to be sad that it's rent and not home prices?
Denver rent is back to 2022 prices after 20k new units hit the market
21–30 of 391 posts
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#22Earlier quoted context omitted.
Someone should try this with medicine. Instead of subsidizing insurance (demand side), let’s spend the money to bring doctors to the USA from all over the world and have them work in free clinics (supply side).
we also could just stop having the federal government limit the number of residency slots so we could have enough doctors trained in the US.
Good luck getting the federal government to stop doing what the unio..., I mean, what the American Medical Association and representatives of the nation's medical schools ask for.
https://web.archive.org/web/20200501175120/https://www.balti...
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#23Lets keep the trend going. Lets get them back to 2019 levels! It would be a real feat if they can keep the cost going down instead of up .
that's unlikely. the pipeline of new units will be slowing, it's just that a bunch of projects that got spun up at the peak are finally delivering, but new starts have been down so we're probably approaching the bottom of a trough
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#24It's a nice victory story for the YIMBYs hoping to win over the upper-/middle class trying to retain the narrative that the market will provide "affordable" housing (not what this even demonstrates, but anyway), but this isn't going to get people off the street. We need a public housing sector to appropriately meet everyone's needs. Otherwise this is just a game of justifying "who deserves housing", a discussion over…
0.2% of Americans are homeless.
Why is housing always about the homeless? Yes, getting people off the street is important. But there's few other topics where a solution that helps 99.8% of people is dismissed because it doesn't help 0.2% of people (I don't even agree that it doesn't help them, but I'll be charitable for the sake of making my point).
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#25Supply and demand 101 continues to work.
Someone should try this with medicine. Instead of subsidizing insurance (demand side), let’s spend the money to bring doctors to the USA from all over the world and have them work in free clinics (supply side).
You basically can’t or it won't have the same effects because medicine doesn’t really follow the same dynamics as most other markets: the supplier (doctor) has an information asymmetry and thus makes most of the decisions, while the buyer (patient) is not usually the payer (insurance) so aren’t really incentivized to save.
Kenneth Arrow famously analyzed the healthcare market and made the above insight: https://assets.aeaweb.org/asset-server/files/9442.pdf
I know he was a Nobel Laureate but not sure if this is the work that won him the Nobel.
Updated: I should qualify my statement by pointing out this is for the US healthcare system.
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#26Doesn’t rent need to keep going up so the top-heavy segment of retirees can have a steady stream of inflation adjusted income and capital gains for their remaining years? This doesn’t seem sustainable, politically
Well, if they own their home and have a diversified portfolio, then they should be able to weather a small hit to income.
If they rent, well, this directly helps their budget.
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#27It will just go back up 3% next year to match inflation. 20k apartments and the rent only lowers 3%? What a joke. Only the real estate industry is celebrating this.
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#28Is it wrong of me to be sad that it's rent and not home prices?
> wrong of me to be sad that it's rent and not home prices?
Rents are higher frequency than home prices. Ceteris paribus, prices follow yields.
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#29It's a nice victory story for the YIMBYs hoping to win over the upper-/middle class trying to retain the narrative that the market will provide "affordable" housing (not what this even demonstrates, but anyway), but this isn't going to get people off the street. We need a public housing sector to appropriately meet everyone's needs. Otherwise this is just a game of justifying "who deserves housing", a discussion over…
So you're telling me if an additional, say, 100k units came on the market in Denver in the next year, housing prices wouldn't fall dramatically such that all working people could afford housing?
Working people should be able to afford housing near where they work. So let's press the gas pedal on building. The mentally ill and drug addicted should be subject to mandatory treatment or jail until such time as their underlying condition is mitigated to the extent that they can work and afford housing. Free housing doesn't work. In fact, it exacerbates individual dysfunction. It is cruelty masquerading as kindness.
Re: Denver rent is back to 2022 prices after 20k new units hit the market
#30It will just go back up 3% next year to match inflation. 20k apartments and the rent only lowers 3%? What a joke. Only the real estate industry is celebrating this.
> 20k apartments and the rent only lowers 3%?
20k is about 5% of Denver's housing stock [1]. Given the backlog of demand, you'd expect to see inelasticity at the entrance.
[1] http://censusreporter.org/profiles/16000US0820000-denver-co/