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Old 12-29-2020, 01:54 AM
 
Location: CO/UT/AZ/NM Catch me if you can!
6,127 posts, read 5,556,488 times
Reputation: 13379

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Rent prices in the Springs have vanished off into the stratosphere as far as I'm concerned. Fifteen years ago I was living in Manitou Springs and I had a cute two bedroom cottage in a nice area for $500.00/month. I would love to return to my home town, but the high cost of rent in Colorado Springs these days prevents me from returning. A two bedroom in Manitou or Ivywild easily goes for $1200.00 or more. That's getting close to triple the rent I was paying before. I'm on a small fixed income, so I might as well be looking for homes on the moon as far as Colorado Springs is concerned.

I use padmapper to check out the rentals, and I notice that many rentals in the Springs are listed as "short term." I assume this means some sort of Air B&B setup? Whatever the story, I am amazed that so many places are listed as short term. What's up with that?

Even in Cortez where I now live, I am amazed at the way the cost of rentals has shot up. Prices have easily doubled in the 10 years or so that I have lived here, and I have no idea why. It's not as though Cortez is booming with new jobs and the typical worker's pay here is not much above minimum wage. Many people I know are working two, even three jobs just to get by.

It baffles me how the cost of housing has skyrocketed while wages have remained more or less stagnant.
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Old 12-29-2020, 08:41 AM
 
Location: Colorado Springs
3,816 posts, read 3,279,329 times
Reputation: 4786
Quote:
Originally Posted by Colorado Rambler View Post
It baffles me how the cost of housing has skyrocketed while wages have remained more or less stagnant.
Agreed. I have opinions about this, but this isn't the forum for them. Unfortunately, it likely won't turn around any time soon.
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Old 12-29-2020, 10:44 AM
Status: "had second shot, still being careful" (set 4 days ago)
 
Location: Manitou Springs
1,206 posts, read 1,409,124 times
Reputation: 1181
Quote:
Originally Posted by TCHP View Post
Agreed. I have opinions about this, but this isn't the forum for them. Unfortunately, it likely won't turn around any time soon.
I don't think it will ever turn around. I believe some (not all) property owners who have rentals do not concern themselves with what the average person is earning or their cost of living. They don't have to, right? Presumably there are enough high earners to keep their rentals filled. But this is just conjecture on my part.

It has become a serious problem that I think will happen everywhere, eventually. A roof over our heads ... something so basic but hard to come by for some income levels. Investors buying up units and in essence kicking seniors out with their 30% rent increases. They do this with seemingly not one shred of concern for where these people are supposed to go. Where are they supposed to go? How many more conversations about the need for affordable housing has to happen?
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Old 12-30-2020, 01:03 PM
 
Location: Colorado
16,050 posts, read 10,303,240 times
Reputation: 29975
Quote:
Originally Posted by Brill View Post
Supply and demand. High demand and low supply makes prices go up.
That is a simplistic "the free market always works beautifully and perfectly" approach.

If I, a regular person, got my hands on a house (such as one my husband and I may inherit in the future) and decided to rent it out, we would not be happy if it is vacant, and we also will have an incentive, if we get a good and responsible renter in there, not to raise rents to the point where we drive them out.

We are not going to hike up rents, no matter how much supply there is, or is not, and we are not motivated to manipulate rents in the whole region to increase our profits. We are motivated to keep a GOOD renter in our house, if we're lucky enough to land one. Somebody who pays on time, and is a good neighbor and who takes decent care of the place.

If instead, we sell said house, and if we sell it to an investment firm that owns many houses in the area, they can easily afford to let one house stand vacant a while, if they are raising rents on a big stable of them all over town, as are the rest of the competing firms. The overall benefit to them, outweighs the cost of having some vacant units. Good renter, bad renter, they don't care. In fact if they can keep the deposits, so much the better, they've got contracts to get maintenance and cleaning done at bigger scale, and can pay less for that. Eviction is something they have experience with, and they probably have legal representation on speed dial to easily handle such matters. They can take advantage of economies of scale, so they don't have the same concerns at all.

So the price point then, is artificially manipulated. Because SOME people will find ways to afford higher rents, and when you get bigger and bigger entities involved, market manipulation goes way beyond supply and demand. The supply is controlled, independent of the demand, by a company that can afford to do so.

There are places in this country, plenty of them now, where vacant housing (supply) is far greater than people in need of housing (demand) and yet prices are still going up, up, and up. And that's this market manipulation at work.

I'm not trying to expose my place of employment on the internet, but suffice it to say, my work is connected to this industry and I know very well what they do.

Imagine if you had the wealth to buy up almost all of a given rare commodity, taking it out of the market, and thereby creating an artificial scarcity. Driving up its value. And then selling it to make a profit. You can really fiddle with things in ways that make a wreck out of basic "supply/demand" concepts, to where that free market isn't this natural, beautiful, free thing...at all. And it's one thing when it's shiny rocks or collectible toys. It's quite another when that commodity is something that people need to LIVE.
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Old 12-30-2020, 01:26 PM
 
23,546 posts, read 43,428,836 times
Reputation: 24757
It take years to bring increased supplies of homes to the market. The basic pathway is land purchase, zoning, platting, installing utilities, road and home construction, and finally the sale of finished homes.

IMO the supply of homes is now constrained, which drives up prices of both resale homes and rents for available units.

But the housing supply is constrained because there's a huge supply of money creating a demand for investment opportunities.

With cheap money, and a $1T tax cut in 2017 for the upper brackets and corporations, there's a ton of money looking for some place, any place, to park all that money and get a return. IMO this is causing bubble-like situations in both the stock markets and housing markets.

Flush with money, REITs and investors are buying up housing units as fast as they can to put into the market for rentals. I get letters in the mail and text messages from investors seeking to buy my house; there are ads on TV as they can't buy enough homes fast enough to sop up all the money. Generous tax loopholes for depreciation further add to the froth. This lust for homes is what creates the tight supply. If these investors were not buying up so many homes then home prices would soften and more young people could buy a home. Rents also would soften as young / first time buyers would no longer need to be in the rental market.

With so many housing units denied to typical potential buyers, these buyers are left with no choice but to rent. Then the investors with rental properties under their control push rents up to the good old capitalist maxim of "all the market will bear" to max profits and generate positive cash flows. By buying up so many properties the investors thus create a tight market which allows them to jack up rental prices to ever higher levels. Then they take the cash flow, to rinse and repeat the process of buying ever more properties. Too much and never enough.

The culprits are bad tax policies and a huge supply of excess cash and cheap money sloshing around the globe.
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Last edited by Mike from back east; 12-30-2020 at 03:13 PM..
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Old 12-30-2020, 02:49 PM
Status: "had second shot, still being careful" (set 4 days ago)
 
Location: Manitou Springs
1,206 posts, read 1,409,124 times
Reputation: 1181
Quote:
Originally Posted by Sonic_Spork View Post
That is a simplistic "the free market always works beautifully and perfectly" approach.

If I, a regular person, got my hands on a house (such as one my husband and I may inherit in the future) and decided to rent it out, we would not be happy if it is vacant, and we also will have an incentive, if we get a good and responsible renter in there, not to raise rents to the point where we drive them out.

We are not going to hike up rents, no matter how much supply there is, or is not, and we are not motivated to manipulate rents in the whole region to increase our profits. We are motivated to keep a GOOD renter in our house, if we're lucky enough to land one. Somebody who pays on time, and is a good neighbor and who takes decent care of the place.

If instead, we sell said house, and if we sell it to an investment firm that owns many houses in the area, they can easily afford to let one house stand vacant a while, if they are raising rents on a big stable of them all over town, as are the rest of the competing firms. The overall benefit to them, outweighs the cost of having some vacant units. Good renter, bad renter, they don't care. In fact if they can keep the deposits, so much the better, they've got contracts to get maintenance and cleaning done at bigger scale, and can pay less for that. Eviction is something they have experience with, and they probably have legal representation on speed dial to easily handle such matters. They can take advantage of economies of scale, so they don't have the same concerns at all.

So the price point then, is artificially manipulated. Because SOME people will find ways to afford higher rents, and when you get bigger and bigger entities involved, market manipulation goes way beyond supply and demand. The supply is controlled, independent of the demand, by a company that can afford to do so.

There are places in this country, plenty of them now, where vacant housing (supply) is far greater than people in need of housing (demand) and yet prices are still going up, up, and up. And that's this market manipulation at work.

I'm not trying to expose my place of employment on the internet, but suffice it to say, my work is connected to this industry and I know very well what they do.

Imagine if you had the wealth to buy up almost all of a given rare commodity, taking it out of the market, and thereby creating an artificial scarcity. Driving up its value. And then selling it to make a profit. You can really fiddle with things in ways that make a wreck out of basic "supply/demand" concepts, to where that free market isn't this natural, beautiful, free thing...at all. And it's one thing when it's shiny rocks or collectible toys. It's quite another when that commodity is something that people need to LIVE.

Before I bought my house, I rented a house for 10 years. My house and 3 others (in a little enclave) were owned by one person. They sold the property. The new owners were of course interested in keeping me there ... and yet they raised my rent by 35% effective immediately. I understand you want to start earning on your investment, but I can't fathom how anyone thinks the average person can handle an increase like that right off the bat. I couldn't. I said goodbye, and they lost a good tenant.
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Old 12-30-2020, 08:57 PM
 
Location: Riverside Ca
22,164 posts, read 27,195,933 times
Reputation: 35212
Quote:
Originally Posted by Vision67 View Post
‘It’s just so wrong’: Seniors left scrambling after apartment complex sold, raises rent

Seniors who live at Taylor Apartments say their rent was abruptly raised


https://www.kktv.com/2020/12/23/its-...t-raises-rent/

COLORADO SPRINGS, Colo. (KKTV) - Roughly 30 seniors had been living at Taylor Apartments in central Colorado Springs when new owners bought the complex in September 2020.
...
What can they do to work with them....I’m betting that means we are willing to buy them the boxes to pack their stuff to get out so we can charge $400 more for rent.

Funny...my tenants all called me and asked if I had any plans on raising three rents....I was actually taken aback as I had no plans on doing any rent raises and I conveyed that to them.
I have no issue with making money...I’m assuming the elderly there were all in month to month leases since they lived there forever...and pretty much are now dealing with the impact of so many people moving out of California New York Washington Oregon etc and relocating to their towns.

Like I previously stated in other posts...I feel sorry for anyone who was gonna buy a house this year or last year in any city that had a modicum of affordable because you just got priced out.

Last edited by Mike from back east; 12-30-2020 at 09:14 PM..
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Old 12-31-2020, 01:08 PM
 
1,291 posts, read 1,528,249 times
Reputation: 905
yes what you guys said ...
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Old 01-01-2021, 08:11 AM
 
Location: SW Florida
14,305 posts, read 7,553,816 times
Reputation: 29567
Quote:
Originally Posted by Mike from back east View Post
It take years to bring increased supplies of homes to the market. The basic pathway is land purchase, zoning, platting, installing utilities, road and home construction, and finally the sale of finished homes.

IMO the supply of homes is now constrained, which drives up prices of both resale homes and rents for available units.

But the housing supply is constrained because there's a huge supply of money creating a demand for investment opportunities.

With cheap money, and a $1T tax cut in 2017 for the upper brackets and corporations, there's a ton of money looking for some place, any place, to park all that money and get a return. IMO this is causing bubble-like situations in both the stock markets and housing markets.

Flush with money, REITs and investors are buying up housing units as fast as they can to put into the market for rentals. I get letters in the mail and text messages from investors seeking to buy my house; there are ads on TV as they can't buy enough homes fast enough to sop up all the money. Generous tax loopholes for depreciation further add to the froth. This lust for homes is what creates the tight supply. If these investors were not buying up so many homes then home prices would soften and more young people could buy a home. Rents also would soften as young / first time buyers would no longer need to be in the rental market.

With so many housing units denied to typical potential buyers, these buyers are left with no choice but to rent. Then the investors with rental properties under their control push rents up to the good old capitalist maxim of "all the market will bear" to max profits and generate positive cash flows. By buying up so many properties the investors thus create a tight market which allows them to jack up rental prices to ever higher levels. Then they take the cash flow, to rinse and repeat the process of buying ever more properties. Too much and never enough.

The culprits are bad tax policies and a huge supply of excess cash and cheap money sloshing around the globe.
This exact same scenario played out here in SW Florida. Investors came in, bought up all the foreclosed and short sale properties and then turned around and rented them for some ridiculous high amount. A 1 bedroom apt. that rented for $545 in 2009 is now $1200. Do you think the salaries have gone up enough to warrant that?

My son is selling his beautiful 2 year old townhome here in my area and bought a townhome that is under construction there in Colorado Springs. I would also like to get out of Florida but even with selling my small house, I don't think I could afford anything there. I'm so over Florida with the endless months of heat & humidity. I'm ready for a change to a place that will allow me to go outdoors most of the year.

Any cities in Colorado that are more affordable?
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Old 01-01-2021, 09:45 AM
 
Location: Southwestern, USA
19,577 posts, read 15,684,346 times
Reputation: 20414
Quote:
Originally Posted by Colorado Rambler View Post
Rent prices in the Springs have vanished off into the stratosphere as far as I'm concerned. Fifteen years ago I was living in Manitou Springs and I had a cute two bedroom cottage in a nice area for $500.00/month. I would love to return to my home town, but the high cost of rent in Colorado Springs these days prevents me from returning. A two bedroom in Manitou or Ivywild easily goes for $1200.00 or more. That's getting close to triple the rent I was paying before. I'm on a small fixed income, so I might as well be looking for homes on the moon as far as Colorado Springs is concerned.

I use padmapper to check out the rentals, and I notice that many rentals in the Springs are listed as "short term." I assume this means some sort of Air B&B setup? Whatever the story, I am amazed that so many places are listed as short term. What's up with that?

Even in Cortez where I now live, I am amazed at the way the cost of rentals has shot up. Prices have easily doubled in the 10 years or so that I have lived here, and I have no idea why. It's not as though Cortez is booming with new jobs and the typical worker's pay here is not much above minimum wage. Many people I know are working two, even three jobs just to get by.

It baffles me how the cost of housing has skyrocketed while wages have remained more or less stagnant.
OMG, I know! 2000 I bought a house --my rent had jumped from $225 to 250 so I saw
thhe writing on the wall...cute cottage, garage, driveway, lots of lawn by CC.

Can u imagine $250? So much privacy. Heaven for 6 yrs.
And No the salaries have not gone up to warrant these prices!!!!
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