61–70 of 147 posts
I don't get why it's not ok to steal food from a grocery store but it is ok to not pay rent. Both are basic necessities and in both cases you hurt someone else by not paying for service (food/shelter).
No one is saying that not paying rent is "okay". These people would continue to pay rent if they could.
Rents will have to come down or be waived. Almost by definition "rent" is simply extracting value from the productive economy through ownership. If the productive economy takes a dive or disappears, the amount you can extract must do likewise.
Semi related I read a detailed description what happened during the hyper inflation in Germany after WWI. A key thing is the inflation was not uniform. Food prices increased the most. And rents the least. At the end rents were effectively zero.
Earlier quoted context omitted.
Then should rents go up? It is now much riskier to be a landlord, risk that is going uncompensated...
Theoretically yes, although the demand curve also comes into play. In a parallel universe where the risks of a pandemic/lockdown was known and taken seriously, you would definitely expect rents to be higher.
Rents will have to come down or be waived. Almost by definition "rent" is simply extracting value from the productive economy through ownership. If the productive economy takes a dive or disappears, the amount you can extract must do likewise.
Rents will have to come down or be waived. Almost by definition "rent" is simply extracting value from the productive economy through ownership. If the productive economy takes a dive or disappears, the amount you can extract must do likewise.
>Almost by definition "rent" is simply extracting value from the productive economy through ownership. What? Do you define any profit margin as such? Housing rent is not the same thing as the term 'economic rent'. Housing is as much a liability as an asset. There is risk with owning it. Rent payments are compensation for said risk. All profit is just compensation for risk.
Equity residential collected 93% of rent for April 1. The difference in tenants is real. Equity residential tenants are higher end rentals in big to midsized cities with strong economies. http://investors.equityapartments.com/file/Index?KeyFile=403...
Corporate America will be culling the herd in a few weeks. Financial services are already purging.
Earlier quoted context omitted.
The article pointed out that a significant portion of renters spend over half their income on their rent. If they are not working, they will not be able to ever make up the difference.
Seems about par for the average New Yorker. Folks in NYC seem especially gullible to spend more than half their paychecks on rent, something even folks in SF would hesitate. This is not for lack of options - my colleagues who make the same as me would rather pay $1000 more a month to stay in Manhattan instead of (a very comfortable still) place in Brooklyn. The commute is still very tolerable by any modern city stand…
Earlier quoted context omitted.
>Almost by definition "rent" is simply extracting value from the productive economy through ownership. What? Do you define any profit margin as such? Housing rent is not the same thing as the term 'economic rent'. Housing is as much a liability as an asset. There is risk with owning it. Rent payments are compensation for said risk. All profit is just compensation for risk.
Lol. Not at any scale. Once you own about a dozen units the principal risk is not getting over your head in debt.
Now is the time for landlords to prove their value.
Many landlords still have to pay for their ownership of buildings and properties and maintenance, etc. They need to see relief first if tenants are to also see relief.