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>What does this have to do with inflation? Part of the inflation rate is housing, in many regions there are still blocks on evictions, foreclosures, etc. This
by syshum 5y ago
>What does this have to do with inflation?
Part of the inflation rate is housing, in many regions there are still blocks on evictions, foreclosures, etc.
This reduces inventory and increases prices. Evictions and Forclosures are critical to the market, if a person can just stay put and not pay rent it is a double whammy for inflation as they will use their rent money on other things increasing demand where supply is restricted (aka inflation) and their housing unit is removed from the supply also increasing inflation
- sgregnt 5y agoBut the rent money not paid by the tenant, is not recieved by the landlord so while tenant will spend more the landlord will be spend less, the net change is zero, no?
- syshum 5y agoThat would only be the case if the LandLord spent it on the same things. They would not The LandLord would use the money to pay Plumbers, landscapers, and/or invest some of the money, and/or build more housing units The Tenant would use it to Paydown other debt, buy a Graphics card, or other things in the consumer market.
- dragonwriter 5y ago> Part of the inflation rate is housing, in many regions there are still blocks on evictions, foreclosures, etc. That's...not what was cited. I am asking about back rent payments due and bankruptcy potential which is what was cited upthread.