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Deludedly Deeming Housing Deregulation a “Disaster”
- PaulHoule 5y agoPeople believe the whole thing is a scam. In particular people don't seem to believe rents follow classic supply and demand, but instead believe that high advertised rents cause the "level set" for what people think rent is to rise. For instance they built this dollhouse village in my neighborhood https://schickelconstruction.com/boiceville-cottages/ https://schickelconstruction.com/boiceville-cottages/ and the rent they charge for one of those dollhouses is astronomical compared to the rent I charge for the two units in the other house at my farm. As a landlord it is hard to fight off the feeling that I am ripping myself off. (Though unlike a lot of landlords I feel like I am running a community as much as running a business. If I can get people there who can run a horse farm for a weekend it makes our life better.) People don't believe the argument that "people with money will spring for the luxury apartments and make other apartments cheaper for other people" but rather that renters and homeowners will see some eye-popping number in the newspaper and that will become the expectation for what rent is.
- mytailorisrich 5y agoUltimately rents are constrained by wages. So are property prices but low interest rates and ease of borrowing can skew this for a while... However people can't take a mortgage to pay the rent and really must have the cash. So, yes, if a property finds a tenant at a certain rent it does mean that they can pay for it and are fine with it. My experience is that many small individual landlords tend not to seek "what the market can bear", usually simply because they are not obsessed with maximizing balance sheet and P&L where corporate landlords have people on the payroll to do just that.