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I am fortunate enough like most HN users to be working in tech, and although I can't speak for everyone in this field, we seem to be better off than most. Infla

I am fortunate enough like most HN users to be working in tech, and although I can't speak for everyone in this field, we seem to be better off than most. Inflation's hit me hard but knock on wood if anything was to happen, I'd be okay. However, my brother, who is just starting his career works in IT and has a $50,000~ a year salary. He lives in a Tier 3 city in Florida and the median rent for a studio there is $1,500, up from $600 five or so years ago. After taxes, car insurance, car payment, food, and a night out here and there, he barely can save anything after his student loan payments. This is ridiculous. I can't imagine what others are facing when it comes to the cost of living crisis that is ongoing here. (And for other folks across the pond in England, it's even worse from what I hear.) Throughout my travels of America, anecdotally, I am seeing more families making long term accommodations out of motels and we seem unwilling from our governments to even address this. I think it's going to get much worse until it gets better unfortunately...

cinntaile 3y ago
Why did the rent increase so much? Much higher demand than before?
- butler14 3y ago
  Interest rates go up, getting a mortgage becomes less affordable -> more people in the market for renting (in many areas, there's also a lack of rental housing stock) Professional landlords have built empires on low interest rates -> interest rates go up -> landlords pass the cost onto renters (or for smaller landlords, exit the market, potentially reducing supply further)
  - importantbrian 3y ago
    Rent prices in Florida were skyrocketing long before interest rates started rising. Our last rent increase before we moved was going to be around 25% back when interest rates were still 0. If anything rent increases -- in South Florida at least -- are partly a zero interest rate phenomenon. There are a ton of half full midrise luxury condos that priced lots of people out of previously affordable communities built as the result of access to cheap capitol and money laundering. There was also the massive influx of people moving into the area during covid. All that to say rent prices in Florida are the perfect example of monocausal explanations for complex phenomenon almost always being wildly incorrect.
- ethbr1 3y ago
  Tl;dr Florida is weird. It's insanely city-centric, because the state is literally a swamp or sun-scorched grassland. On top of that, add a lot of foreign buyers, for various cultural, geographical, and political/economic-stability reasons (e.g. if you're a wealthy Haitian). On top of that, add a constant stream of snowbirds [0] and retirees. On top of that, add a huge tourist economy. At the end, you get a housing market that's really unstable (up and down). [0] https://en.m.wikipedia.org/wiki/Snowbird_(person) https://en.m.wikipedia.org/wiki/Snowbird_(person)
- chank 3y ago
  Tier 3 city are "undeveloped/no market" cities. So it could be remote workers moving out of high COL areas. But also a bit of greed sprinkled on top.

cinntaile 3y ago

Why did the rent increase so much? Much higher demand than before?

butler14 3y ago
Interest rates go up, getting a mortgage becomes less affordable -> more people in the market for renting (in many areas, there's also a lack of rental housing stock) Professional landlords have built empires on low interest rates -> interest rates go up -> landlords pass the cost onto renters (or for smaller landlords, exit the market, potentially reducing supply further)
- importantbrian 3y ago
  Rent prices in Florida were skyrocketing long before interest rates started rising. Our last rent increase before we moved was going to be around 25% back when interest rates were still 0. If anything rent increases -- in South Florida at least -- are partly a zero interest rate phenomenon. There are a ton of half full midrise luxury condos that priced lots of people out of previously affordable communities built as the result of access to cheap capitol and money laundering. There was also the massive influx of people moving into the area during covid. All that to say rent prices in Florida are the perfect example of monocausal explanations for complex phenomenon almost always being wildly incorrect.
ethbr1 3y ago
Tl;dr Florida is weird. It's insanely city-centric, because the state is literally a swamp or sun-scorched grassland. On top of that, add a lot of foreign buyers, for various cultural, geographical, and political/economic-stability reasons (e.g. if you're a wealthy Haitian). On top of that, add a constant stream of snowbirds [0] and retirees. On top of that, add a huge tourist economy. At the end, you get a housing market that's really unstable (up and down). [0] https://en.m.wikipedia.org/wiki/Snowbird_(person) https://en.m.wikipedia.org/wiki/Snowbird_(person)
chank 3y ago
Tier 3 city are "undeveloped/no market" cities. So it could be remote workers moving out of high COL areas. But also a bit of greed sprinkled on top.