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Does most housing "rent" qualify as "rent" for the purpose of the phrase? I thought it mostly didn't, because the idea was that a rent is a recurring payment e
by mbg721 4y ago
Does most housing "rent" qualify as "rent" for the purpose of the phrase? I thought it mostly didn't, because the idea was that a rent is a recurring payment exchanged for no additional value, but apartments, while hideously expensive, are still a you-get-what-you-pay-for thing.
- BirdieNZ 4y agoIt depends on where you live; properly speaking, the proportion of your rent that is caused either by regulatory capture or by land ownership is the "rent-seeking" kind of rent, the rest is "hiring a house" kind of rent. In municipalities with highly restricted supply due to regulation, as well as expensive land due to lack of a land value tax or property tax, most of your rent will be the "rent-seeking" kind of rent. Apartments usually are built on very expensive land and are still affected by restricted supply caused by regulatory capture, so they're not different in this instance.