Why rents went up, supply and demand (Pittsburg: leasing, insurance)

[jm1982]

Originally Posted by CaliRestoration

This.

If I'm a developer, and it's going to cost me $20,000,000 to build a 20-30 unit apartment in an area where they require 25% of my units to be "rent controlled", and "tenants rights" allows a bum to squat in my unit for 4-6 months without paying while I await an eviction from the Sheriff's department who doesn't want this to turn into a social media fiasco so they drag their butt even slower, why the **** would I build that rental property in that city?

So in turn you get constrained supply, and a "surplus" demand, which in turn raises the price equillibrium. This is BASIC market theory, yet most Democrats will read something like "surplus of demand" and have a glazed look over their face as they DEMAND "rent control and $22 an hour minimum wage".

Heard an investor mention recently how CA is the worst as the tenant has all the power .
They said how in Texas the sheriff shows up with their gun and gets the tenant out puts their stuff on the curb
It sounds like night and day difference from CA .

[CaliRestoration]

Originally Posted by jm1982

Heard an investor mention recently how CA is the worst as the tenant has all the power .
They said how in Texas the sheriff shows up with their gun and gets the tenant out puts their stuff on the curb
It sounds like night and day difference from CA .

Wait until California passes the "you can't evict an illegal alien" law. Watch how many illegals will actually lose housing due to this law. I'm actually tacitly in support of it.

[asdfer]

Originally Posted by CaliRestoration

I can see you've never tried to develop a rental property before. Why don't you "pretend" some time, and call the city planning office and find out the cost associated with building a large rental property? The reason rents are so high is not just about constrained supply but also because the cost of regulation is passed right back to the renter.

Most people with the capital to build rentals (such as myself) won't build them in LA because of regulation, and therefore you will always have constrained supply. There's a reason why places like San Francisco and Los Angeles never have enough rentals for poor or middle class people (they have plenty for rich people).

How many new apartment units have come online in DTLA in the last 5 years?

[pittsflyer]

Why do people stay there if their income is not rising proprortiate to their costs?

[pittsflyer]

Originally Posted by jm1982

Heard an investor mention recently how CA is the worst as the tenant has all the power .
They said how in Texas the sheriff shows up with their gun and gets the tenant out puts their stuff on the curb
It sounds like night and day difference from CA .

Texas is in a race to the bottom, I would not live in or take a job in Texas unless I had an employment contract reviewed by a lawyer and a lease that had specific language that I wanted even then the courts are so corrupt that I would not even trust that contract law would be enforced in Texas.


You can be replaced by an H1B visa holder at any moment or be fired by some some immigrant that was put in charge. Texas is a mess and I would need middle east mid 90's engineering pay to go there. I don't think I would go there for less than 250k a year with a contract that I line itemed to protect me for at least 5 years so that I could walk away with over a mil and leave that cesspool.


Outside of that they can have it.

[jm1982]

Originally Posted by pittsflyer

Why do people stay there if their income is not rising proprortiate to their costs?

Usually why people stay in any high cost area . Their friends and family are already there is a big one . They like the weather . They like the beach . They like where they work . Etc

[jm1982]

Originally Posted by CaliRestoration

Wait until California passes the "you can't evict an illegal alien" law. Watch how many illegals will actually lose housing due to this law. I'm actually tacitly in support of it.

How will they lose it ?

This law is dumb because most landlords probably don't even care if the tenant is illegal as long as they pay rent on time and don't trash place .

Another stupid "symbolic" law

[asdfer]

Originally Posted by jm1982

How will they lose it ?

This law is dumb because most landlords probably don't even care if the tenant is illegal as long as they pay rent on time and don't trash place .

Another stupid "symbolic" law

Because a smart landlord will not rent to someone they don't have the option to evict if he breaks the lease terms.

[CaliRestoration]

Originally Posted by asdfer

Because a smart landlord will not rent to someone they don't have the option to evict if he breaks the lease terms.

Bingo.

[jm1982]

Originally Posted by asdfer

Because a smart landlord will not rent to someone they don't have the option to evict if he breaks the lease terms.

I'm guessing the law would be that you can't use their "immigration status " as a reason to evict them .

Not that they can do anything they want like not pay rent or destroy the place and not get evicted .

Good point though that it might still make landlords cautious about evicting illegals

But then will they make a law saying you can't ask or even verify if a potential tenant is legal or not when they apply.

L.A already has made it illegal for employers to ask about criminal background on job applications .
I could see that being the next move .

A "Fair Housing for the Undocumented Act" type BS