>Home prices and rents have gone up way more than incomes over the last 10 years
Home prices, maybe. But rents (aka housing)? AFAIK it's kept pretty consistent: https://www.aei.org/wp-content/uploads/2020/01/cpi2020-875x1...
Home prices, maybe. But rents (aka housing)? AFAIK it's kept pretty consistent: https://www.aei.org/wp-content/uploads/2020/01/cpi2020-875x1...
These are the best value apartments in this area. The new ones they built down the street have a $3300 list price for a 3bd.
This is an affordable midwest area.
The bigger issue is the fact that all new stuff is not significantly different or better, but almost 3 times the price. The floor is falling out.
Out of curiosity, what was the comparable rent in 2005/before the crash in 2008?
The landlords' operating costs haven't gone up significantly either. They own the property outright, the same maintenance crew is around, they're down a leasing agent and manager from a year ago, and property tax increases are capped in this city. Any rent increase they can push beyond inflation directly lines their pockets.
aka, they are charging the market rate, which other people in the market are willing to pay for the use of the building.
The increase in rental income for landlords mean that there should be pressure to build more buildings to let out. Market forces _should_ cause stablization, if only it is allowed to work long term. Short term, there will be pain, because you can't build a new building instantly, but this pain is what causes new buildings to spring up. Market-distorting forces, such as building density/height regulation, and local residents' complaints (NIMBYism) is the cause for the lack of stablization imho.