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This is a catch 22, high wages make the rent increase (demand and offer) and high rents demand high salaries, it's a spiral going to a bubble.
by AdrianB1 6y ago
This is a catch 22, high wages make the rent increase (demand and offer) and high rents demand high salaries, it's a spiral going to a bubble.
- Tade0 6y agoIndeed, but eventually a ceiling is reached over which it would be impossible to make a profit having on-site employees. I don't envy the locals though. I spent 2,5 months in Zurich, during which I saved so much that in pre-corona times it would be enough for the minimal allowed down payment for an apartment. The Swiss don't have a Switzerland of Switzerland where they could pull off the same trick.
- rrrrrrrrrrrryan 6y agoHousing supply is the variable that can act as a release valve. If cities don't want to expand vertically, that's fine, but they'll inevitably end up in a Bay Area type rent spiral. I think the real issue is that homeowners vote so much more frequently than renters (who would love to have more housing and lower rents), even though they're technically outnumbered.