4 ms·

It is happening all around Europe. Rent control + increasing wealth of the economy is crowding areas and limiting to bid for new renting spaces.

collyw 7y ago
Are places with rent control better or worse? The only city I am aware of with rent control in Europe is Stockholm. Apparently finding a flat there is a nightmare. Where I live there is no rent control and its still a nightmare trying to find somewhere central to rent for a decent price.
- meerita 7y ago
  There is all kinds of rent control over all Europe. In Stockholm is a nightmare. I tell you, 20 years to get a flat. There are other forms of rent control, that affects more or less. The economist Juan Ramon Rallo studied this matter deeply and he states that the only solution is deregulate construction (more buildings, higher) and no rent control, so tenants can rent cheaply without so much requirements to get into a flat.
  - collyw 7y ago
    Ok, its true, there is some sort of rent control where I live, the inflation can only go up by the same as inflation - for the duration of the contract. But then one the contract is up they can charge what the market will let them. Contracts were 5 years, went down to 3, and are now back up to 5. At the end of our last 5 year contract the rent went up by around 45%. Bought a small place further out instead.
  - fastbeef 7y ago
    Playing the devils advocate, it's not 20 years to get a flat. It's 20 years to get a large, cheap, centrally located flat. You can get a firsthand contract for spatious 2 room apartment in Märsta for 14k a month right now.
    - meerita 7y ago
      Yes, we're talking about big cities. People want to live near the center, but even at 14km is not matter of days. You need to wait.
dashundchen 7y ago
It's happening all around the world. I'm in a US Rust Belt city that's lost population since the 1950s, and had flat growth in the region since 1970. Yet in many neighborhoods housing prices have doubled to quintupled over the past 15 years. Similar stories in a lot of other rust belt areas which I know are not booming. The urban areas are definitely more attractive than they used to be, but it doesn't add up. It makes me think the drive behind this is post-financial crisis monetary policy.
- pnutjam 7y ago
  Yep, borrowing is cheap and real estate returns are regular. They outpace inflation, and many other places you can put your money, do not.
- eru 7y ago
  Fortunately, not in Singapore. Our rents have come down in the last few years. (Still at a very high absolute level.)

collyw 7y ago

Are places with rent control better or worse? The only city I am aware of with rent control in Europe is Stockholm. Apparently finding a flat there is a nightmare. Where I live there is no rent control and its still a nightmare trying to find somewhere central to rent for a decent price.

meerita 7y ago
There is all kinds of rent control over all Europe. In Stockholm is a nightmare. I tell you, 20 years to get a flat. There are other forms of rent control, that affects more or less. The economist Juan Ramon Rallo studied this matter deeply and he states that the only solution is deregulate construction (more buildings, higher) and no rent control, so tenants can rent cheaply without so much requirements to get into a flat.
- collyw 7y ago
  Ok, its true, there is some sort of rent control where I live, the inflation can only go up by the same as inflation - for the duration of the contract. But then one the contract is up they can charge what the market will let them. Contracts were 5 years, went down to 3, and are now back up to 5. At the end of our last 5 year contract the rent went up by around 45%. Bought a small place further out instead.
- fastbeef 7y ago
  Playing the devils advocate, it's not 20 years to get a flat. It's 20 years to get a large, cheap, centrally located flat. You can get a firsthand contract for spatious 2 room apartment in Märsta for 14k a month right now.
  - meerita 7y ago
    Yes, we're talking about big cities. People want to live near the center, but even at 14km is not matter of days. You need to wait.

dashundchen 7y ago

It's happening all around the world. I'm in a US Rust Belt city that's lost population since the 1950s, and had flat growth in the region since 1970. Yet in many neighborhoods housing prices have doubled to quintupled over the past 15 years. Similar stories in a lot of other rust belt areas which I know are not booming. The urban areas are definitely more attractive than they used to be, but it doesn't add up. It makes me think the drive behind this is post-financial crisis monetary policy.

pnutjam 7y ago
Yep, borrowing is cheap and real estate returns are regular. They outpace inflation, and many other places you can put your money, do not.
eru 7y ago
Fortunately, not in Singapore. Our rents have come down in the last few years. (Still at a very high absolute level.)