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Yes, the rents in popular areas will rise. Since people have a basic income to support them regardless where they are living, they can move to areas with lower
by manicdee 8y ago
Yes, the rents in popular areas will rise. Since people have a basic income to support them regardless where they are living, they can move to areas with lower rent (thus increasing the rent — and net rental income — of the area they move to).
At present, most unemployment benefits systems require the recipient to stay where they are, or move to places with better employment opportunities. This places a large burden on the recipient since they might already be in a high rent area and are not allowed to move to somewhere they can afford to live.
- mises 8y agoI figure low-rent areas will have rents go up as well. It may take longer, but it will ripple through the whole economy.
- manicdee 8y agoYes, all rents will rise, but most rents will rise less than the rise in income until rental vacancies hit 0%.
- mises 8y agoNot sure. In a normal, gradual rise in wages, this might be true. But in a massive, sudden income increase, I personally would try increasing my prices (by at least some) immediately. And more over time.