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In my experience, this is not the twenty somethings complaining. It's the older folks who have been living close to everything for decades at a low cost, now upset that twenty somethings and thirty somethings with ten times as many skills as them are now able to pay higher rent than they are.
So again back to my first question. If "No One" could afford to pay or qualify to take out a mortgage on this home then how come the home does SELL at the above price and usually in a bidding war. I think alot of this is just envy
Income inequality, baby. Top 20% are lifting off into the stratosphere.
The problem with renting is that you don't control your destiny, your landlord does.
Renting means being able to live somewhere ONLY as long as nobody else is willing to pay more to live there. As soon as someone else is willing to pay more than you, you're out.
My solution to this is to ALLOW - less government, more liberty - ownership of tiny properties, so that low-wage workers can buy property and thereby control their housing destiny.
Zoning rarely if ever allows this, because nobody wants poor people owning property in 'their' neighborhood.
Agreed.
Even if song permits housing, navigating the bureaucracy to be able to build new units is long, tedious and expensive. After going through all that, it's not really surprising that developers are marketing towards the luxury demand. They wanna see some pay off.
Loosen zoning laws, loosen building permit regulations and the sky high rents will come down. Obviously, if you wanna live in downtown Boston, you're gonna still pay more, but overall the vas majority of people will be much better off.
I came to the economics forum to find out what economics is all about. It seems to be mostly about communism, liberalism, Marxism, sarcasm, fertilizer, estrogen, and a pathological sense of entitlement. How long would it take me to learn all that stuff and become an economics expert?
It should also be about freedom, liberty, limited government, and property rights.
But the inconvenient truth is that homeowners want government to restrict property rights in order to prop up their property values.
It is fair, because you are benefiting from lower rent due to the owner deducting the mortgage interest on their loan. They also get deductions that homeowners do not, including maintenance costs, depreciation, utilities, and even travel costs.
Your logic is faulty. You are assuming the landlord is basing what he charges for rent as "cost plus", when in fact he is charging what the market will bear. If the landlord pays off the mortgage and no longer has that expense, he is not going to "lower" the rents because his "costs" went down. He is going to charge what the market will bear.
Same with a declining market. His costs may remain the same, but if no one is willing to rent at that price, he must reduce the ask. I have owned commercial rental property and after the financial disaster of 2008, we had to lower our commercial ask or the tenants would have found another lower cost place to rent. Lots of vacancies = lower rents. Nothing to do from benefiting from the deductions. And remember whether the property is commercial or residential, the landlord is in business. The homeowner is not.
So the homeowner does benefit from mortgage and tax deductions, where the renter does not.
I came to the economics forum to find out what economics is all about. It seems to be mostly about communism, liberalism, Marxism, sarcasm, fertilizer, estrogen, and a pathological sense of entitlement. How long would it take me to learn all that stuff and become an economics expert?
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