3 ms·

There is a point that is often glossed over in these analysis- the rental stock and the ownership stock are often fundamentally different. Last time my family m

There is a point that is often glossed over in these analysis- the rental stock and the ownership stock are often fundamentally different. Last time my family moved we weren’t opposed to renting, but there was something like 1/10 the number of available SFH rental units in the area we were looking compared to available SFH rental units. In the US at least I think there is a case to be made that this is due to the UNDER financialization of housing- if you own a home at want/need to move it is difficult for most families to do anything but sell their current home in order to qualify for a mortgage. This suppresses the rental stock even when it is financially reasonable to rent out a house versus selling. (Yes, there are companies buying SFH housing to let out, but they seem small compared to the overall market right now)

burfog 8y ago
It may seem financially reasonable to rent out a house, but normal people don't want the risk and hassle. Renting out houses is an occupation, with special skills. You have to navigate the legal situation to avoid being sued, while still doing your best to refuse people who seem like they could be trouble. You can expect damage and non-payment of rent. You can expect the state to make it extremely difficult for you to get rid of destructive people who aren't paying. You can get sued over a lack of repairs, but meanwhile the renters are causing the damage and failing to tell you about it. Renters will ignore water leaks that don't seem to impact them, letting your home rot from the water. Renters will smoke and keep pets, despite any rules to the contrary, and they will fail to control destructive kids. Renters will illegally authorize workers to drill holes to run cables through the walls. I've known people who tried renting out a house. They ended up with drug dealers, prostitutes, new doorways and other openings being cut, a bloody murder scene, floors and walls rotted out, destroyed cabinets, etc. Most new homes are in home owner associations that prohibit renting houses out.

burfog 8y ago

It may seem financially reasonable to rent out a house, but normal people don't want the risk and hassle. Renting out houses is an occupation, with special skills. You have to navigate the legal situation to avoid being sued, while still doing your best to refuse people who seem like they could be trouble. You can expect damage and non-payment of rent. You can expect the state to make it extremely difficult for you to get rid of destructive people who aren't paying. You can get sued over a lack of repairs, but meanwhile the renters are causing the damage and failing to tell you about it. Renters will ignore water leaks that don't seem to impact them, letting your home rot from the water. Renters will smoke and keep pets, despite any rules to the contrary, and they will fail to control destructive kids. Renters will illegally authorize workers to drill holes to run cables through the walls. I've known people who tried renting out a house. They ended up with drug dealers, prostitutes, new doorways and other openings being cut, a bloody murder scene, floors and walls rotted out, destroyed cabinets, etc. Most new homes are in home owner associations that prohibit renting houses out.