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Rent becomes a fixed low amount over time due to rent control. Eventually rent becomes negligible. However, salaries continue to climb.
by ransom1538 13y ago
Rent becomes a fixed low amount over time due to rent control. Eventually rent becomes negligible. However, salaries continue to climb.
- grmarcil 13y agoWhere in the world does that apply? NYC has some of the most tenant-friendly rent control laws I know of, and most rent-controlled units are fairly close to market rate, and the legends you hear about exist but are so rare they might as well not. Urban centers have a pretty finite supply of housing, so you're looking at what amounts to a long-running auction for rents among residents. People are generally pretty willing to "bid" 25-35% of their income on rent (or more, depending on the area and demographic), so as average salary rises, rents are going to rise too, unless you're expecting a major urban retreat sometime soon.