By September, our own Richard Florida noted that it had become cheaper to own a home than to rent one in every one of the country's 100 largest metros. Earlier this year, it appeared as if the average rent for an apartment in San Francisco had finally leveled off...
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We live in a consumer economy. Consumers are not getting raises in their wages. Rents are rising and the consumer economy will suffer.
From the article:
"The fact that your rent is rising is hardly the fault of greedy landlords. They're extracting what the market will pay, and the market has gotten a lot tougher as more job-seekers have moved into certain cities, and as many people have been scared off of homeownership. But it's worth noting that as you dash off your next rent check, you're not the only one hurting. This isn't good for the economy, either."
As the article made clear, it is not just the landlords who are taking advantage of rent seekng. The entire FIRE sector is growing incredibly wealthy collecting rents which impoverish the wage earner while producing NOTHING!
The 1% are becoming rentiers making their capital work for them. That is what happens in an economy where labor loses its bargaining power.
But rents on single family homes are falling as Wall Street 0.01%ers sell to the 1%ers who want to become landlords.
A point of information: in California it is very easy for your deadbeat renter to stay for 18 months without paying any rent, so good luck to you who invested in the funds buying houses in Riverside, San Bernadino, Ventura, or Sacramento counties.
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