The Rent is to damn high.

[dutch508]

cinematicdiversions (1,382 posts)
https://www.democraticunderground.com/100216104071

The Rent is to damn high.

Just got off the phone with my friend who was in tears. Her rent is going up another $200 a month. Her rent is low for the area (1600) and she lives in a rural area but rents are up almost 30% in our town this year and they are not slowing down.

She is a single mother of two including a special needs child, but she makes too much for any government support. She looked around for another place to rent, but thier prices were even higher. In many cases, there is simply no room at the inn.

We talk about inflation, but there are two types of inflation. Homeowners have seen capital gains in the tens of thousands while their mortgage stays unchanged. Renters pay twice the average homeowner per month and have seen nothing but misery. It is a real divide.

Our area has a moratorium on building new apartments while the county catches up with schools and roads. Also, environmental groups are banning them as well as people concerned with the disappearing open spaces. So new housing of that type is not in the cards anytime soon. Meanwhile, the already built ones simply increase in price.

For the renter the inflation rate is not 6% it is closer to 25%. We need to keep that in mind.

 

Haggard Celine (14,322 posts)

1. That's why I bought a house a few years ago.

It was the best decision I ever made. My mortgage is a lot less than what most are paying for rent in this town, and I'm also building equity. I didn't buy for years because I always thought I'd be moving away one day. Well I finally decided that I need to prepare myself for the possibility that I might be living here until I die. Besides, if I do end up moving away, I can always sell the house. It was stupid of me to put it off for so long, but better late than never.

madville (6,069 posts)

14. Yeah, the mortgage, taxes, and insurance on my

2200 sq ft house on 6 acres is about the same as rent for a nice one bedroom apartment a few miles away in the city limits. Inflation will just make my debt owed worth less and less as time goes by.

Star Member Hugh_Lebowski (25,680 posts)

3. I think Global Capital is buying up US property and jacking the rent

It's one of the safest investments in the world, and every rich investor group is looking for safe investments.

In another 10-15 years I'd bet that corporations own >50% of the housing in the USA, and a LOT of it will be foreign.

I believe there is something MASSIVELY important going on in this arena, and nobody is keeping track, and nobody is talking about it. Gen X/Y people are selling their properties at good profits to global capitalists, and moving into their dead boomer parent's houses all over the country, or into apartments, with a bunch of money in the bank so they don't care that much that rent is high. They have jobs.

Or they stay where they are, and sell their dead parent's houses to the global capitalists.

There's a reason there's now SO MANY companies ready to give you CASH for your home, and let you stay in the house for 6 months or more ... I get calls to sell my place ALL THE TIME. The ads for these companies are on TV ALL THE TIME, at least where I am. This is not a coincidence.

Large investment conglomerates want to buy up as much as they can, and then they'll collude to jack rents, and **** everyone over (but not in a way anyone can do anything about, legally, cause it's MURKA and PROFITS are KING!!!11!)

MHO

Star Member womanofthehills (6,090 posts)

23. Agree - it's happening in Albuquerque for sure

My daughter and another couple (relatives) got notices that their apartment complexes were sold and their rents are going up over $100. They are all saving to buy houses, but the house prices have recently sky rocketed. People now need to hook up with others to buy or rent. My grand kids can not afford to rent a place alone. My grandson has three roommates and my grand daughter has one and her complex just sold. My daughter is just going to move in with her boyfriend and the couple just rented a house but had to ask a relative to move into one of the bedrooms so they could afford it.

Sympthsical (2,748 posts)

9. That's why we keep our rent low

We have five bedrooms and use two (master and a home office). We currently have one tenant who is a friend of a friend who was facing homelessness. He works at the local Safeway down the street, so we charge $750 for a ground floor room that has an en suite bathroom/shower and a side entrance through the garage. He basically never has to see us.

We've been discussing renting out another of the bedrooms. It also has an en suite bathroom/shower. Maybe $1,000, as it's bigger and more privacy.

We don't need to rent out. Just like paying the house off, and it allows both of us to put more of our own money into our retirement.

We're in the Bay Area, so it's nice to give someone at least a little relief. Tiny one bedrooms start at $2,000 in my area. It's totally ridiculous. If it was just my partner and I, and we split the mortgage, I would be paying less than that for my entire house.

Companies and landlords are just being predatory in many cases, because they know they can get tech money for things.

 

Cicada (4,456 posts)

12. Exclusionary zoning is our number one enemy

Zoning which prohibits more than one residence, and requires a large minimum lot size, causes incredible harm. High residential prices could be fixed if multiple units and/or small lots were permitted. But it is almost impossible to get votes to change such zoning. Those in “nice” areas do not want apartments and benefit from high values of their homes. Term limits actually helps change because a legislator who can’t run for re-election has less to fear from angry constituents.

cinematicdiversions (1,382 posts)

21. The problem is you need to build new schools, roads, parks , bike lanes, etc

For many communities Doubling their population without doubling their tax base would but a serious burden on thier finances. Not to mention all the need for additional commercial space and municipal buildings that have to go somewhere.

Curbing growth with the interests of both the environment and the current residences is going to be a hard habit to break for most areas.

Star Member Celerity (23,890 posts)

13. These crazy rent hikes being talked about on this thread are illegal here in Sweden and many other

EU nations.

The US economic system is all about wealth extraction, pushing it from the broad bottom up to top of the pyramidion, in large part via the health care, tertiary education, and real estate (emphasis on rentals) sectors, but hardly limited to just those extractive tools.

 

[thundley4]

Just got off the phone with my friend who was in tears. Her rent is going up another $200 a month. Her rent is low for the area (1600) and she lives in a rural area but rents are up almost 30% in our town this year and they are not slowing down.

 

Most high rents are caused by Democrat policies and taxes.

[Ralph Wiggum]

The Rent is to damn high.

Nice grammar.  Smartest people on the internet at DU, aren't they?

[fatboy]

Our electric utility PPL (Pennsylvania Power and Light) just this week raised rates 26%

This is good news for the environment and those who own electric cars!

[Ralph Wiggum]

Our electric utility PPL (Pennsylvania Power and Light) just this week raised rates 26%

This is good news for the environment and those who own electric cars!

The large grocery store about a mile from my house has a bunch of charging stations, and I've never seen a single car using one of them.  Asked a few friends who patronize this store frequently if they've ever seen one there and they all said no.

[Zathras]

Nice grammar.  Smartest people on the internet at DU, aren't they?

Maybe it's the name of their landlord or leasing agency?

[Drafe Hoblin]

High rent was a risk of voting Democrat.

A virtually immediate risk too.  10-months.  The warnings were there.

[ADsOutburst]

The Rent is to damn high.

Nice grammar.  Smartest people on the internet at DU, aren't they?

The rent is to damn high as Biden's approval rating is to damn low!

[DLR Pyro]

High rent was a risk of voting Democrat.

A virtually immediate risk too.  10-months.  The warnings were there.

the DUmmies were either too ignorant to realize that risk or they felt it was a fair trade for no more mean tweets...

[SVPete]

cinematicdiversions (1,382 posts)
https://www.democraticunderground.com/100216104071

The Rent is to damn high.

Just got off the phone with my friend who was in tears. Her rent is going up another $200 a month. Her rent is low for the area (1600) and she lives in a rural area but rents are up almost 30% in our town this year and they are not slowing down.

Remember that moratorium on evictions? Many people took advantage of it and didn't pay their rent, while their landlords still had to do repairs and pay taxes. Maybe DUmmies are too DUmb to figure it out, but landlords don't have money-printing machines in their rectums, so now some are doing evictions, some are doing payment plans, and some are raising rents to catch up with the repairs and taxes they had to pay with loans and credit cards.

And if the DUmmie's friend lives in a city where gooberment has constricted housing with restrictions and fees, well, supply-and-demand happens.

[Rebel]

cinematicdiversions (1,382 posts)

4. This is why that weird Mortage vs Rennt arguement is so infuriating.

Your mortgage never really goes up all that much i at all. That may not seem a big deal any particular year, but ten or fifteen years later it is a godsend.

Yeah, well I don't know any renters signing on the dotted line for a 30 year commitment, DUmbass. THAT'S why we get our rates locked, unless you have an ARM, but that's probably a democrat thing trying to buy more than they can afford.

[DLR Pyro]

Yeah, well I don't know any renters signing on the dotted line for a 30 year commitment, DUmbass. THAT'S why we get our rates locked, unless you have an ARM, but that's probably a democrat thing trying to buy more than they can afford.

and then bitch and whine about how you were deceived by "predatory" lender tactics when you failed to read the terms of the loan agreement to see what you were signing up for.

[Ptarmigan]

High rent was a risk of voting Democrat.

A virtually immediate risk too.  10-months.  The warnings were there.

DUmmies do not read warning labels.

[landofconfusion80]

Who knew shutting down the world's biggest economy for over a year would have negative consequences 

[DefiantSix]

DUmmies do not read warning labels.

DUmmies are the reason for the warning labels on most items...

[Delmar]

Response to cinematicdiversions (Original post)Thu Dec 2, 2021, 10:03 AM
Star Member MineralMan (140,465 posts)
27. It is. A lot of investment in real estate is going on, and

driving single-family home prices up way too quickly. Investors, large and small, are buying up houses, in the belief that prices will continue going up. So, they're renting those houses out, based on the price they had to pay for them and the cost of servicing the mortgages they got to pay for them.

As single-family home rents rise, owners of apartment buildings think they should raise rents, too.

However, the rapid increase in the price of residential real estate may not continue at the pace it has. My wife and I moved this year, and paid a premium price for the 2 bedroom townhome we bought. We then fixed up our previous home with a new roof, fresh interior paint, new flooring, and other stuff and put it on the market.

Both places are near the bottom of the market in the Twin Cities area in Minnesota. We were expecting our previous home to sell at an increased price from its previous valuation. It did not. It was not in the right neighborhood, apparently, and prices in that neighborhood had not increased as much as in our new neighborhood.

We didn't take a loss on the house, which we bought in 2004, but we also didn't make much of a profit on it, either. That's especially true after we spend the money fixing it up for a sale. It wasn't a big deal for us, and our new house and the old one had roughly the same value. It was a wash, really.

However, the person who bought our previous house is a real estate investor and will be renting it out. The problem for him is that rentals in the neighborhood where it is are not priced as high as he will need to get to service his mortgage. He's spending more money on the house, too, getting it ready to rent with a new AC system and new siding and some new windows. The reality is that he will not be able to find a renter for rent that will cover his mortgage costs. Of that I'm certain.

Not my problem, of course, but real estate investors are about to discover that what they can buy in today's market cannot support the rents they need to get to service the mortgages. That will tend to pull prices back down a bit.

Whe EF Hutton speaks, people listen.  When nouveau-riche primitive Rock Head speaks, people nod off.

https://www.youtube.com/watch?v=2_ygqPepLjM

[DLR Pyro]

Whe EF Hutton speaks, people listen.  When nouveau-riche primitive Rock Head speaks, people nod off.

https://www.youtube.com/watch?v=2_ygqPepLjM

ah, I remember those commercials

[Rebel]

Dear jackasses of DU. I give you.....


https://www.opensecrets.org/orgs/blackrock-inc/summary?id=D000021872

https://www.opensecrets.org/orgs/blackrock-inc/totals?id=D000021872


That's who is buying up rentals all over the f'n country.

[Rebel]

Lately, populist Republicans have been good for independent businesses; Democrats and RINOs have been good for major corporations. Populist democrats, AKA socialists, won't ever win a national election. I'll side with populist Republicans. Trump is LIGHTYEARS better than any clown you idiots put forth.

[jukin]

It has a lot to do with the senile old pedophile's 15% inflation.

Why do DUmbass leftists always vote for the party that will hurt them the most?

[enslaved1]

The current state of inflation isn't helping rent prices any, neither does all the people who abused the various rent moratoriums over the kung-flu, but rent has been out of control for a long time.  Landlords know many people are renting because their credit score sucks and can't get a mortgage, so those tenants are forced to rent at whatever price the landlords set it at.  Add in ever-increasing property taxes that landlords have to cover, the number of corporate rental companies who often take care of rentals for owners, adding a layer of bureaucracy and cost, and in some areas (like the whole DFW metroplex) lack of supply, and rent gets ugly fast.  We had a nice house, nice neighborhood, mostly well taken care of by the company, 4 bdr, 2 bath, that was about to go to $2000 a month when we moved out.

Unlike the DUmp, who just want to gripe and plea for almighty government to come save them, I'll ask what are some realistic solutions?  Run for the local offices that affect property taxes, be attentive to local elections, both the people running and the various bond issues/tax proposals that come up.  Bust your own butt to put back money and get your credit score in order to buy a house so you aren't affected by rent.  Put the money you save into investment property to rent out yourself and charge what you think is more fair (yes, real world costs will likely shoot a hole in that one fast, but if enough people did it their darn selves, a market change is likely).  Teach your children that it's worth owning a house and what they need to do to reach that goal.