The Vicious Circle That Is Sending Rents Spiraling Higher

jones_supa writes: Skyrocketing rents and multiple roommates — these are the kinds of war stories you expect to hear in space-constrained cities such as New York and San Francisco. But the rental crunch has been steadily creeping inland from coastal cities and up the economic ladder. Bloomberg takes a look at the vicious cycle that keeps rents spiraling higher. People paying high rents have a harder time saving for a down payment, preventing tenants from exiting the rental market. Low vacancy rates let landlords raise rents still higher. Developers who know they can command high rents (and sales prices) are spurred to spend more to acquire developable land. Finally, higher land costs can force builders to target the higher end of the market. The interesting question is how long can this last before we reach a level that is not affordable to the majority of the demographic that is being serviced.

Comments

Re:sigh...

[MightyMartian]

I'm an idiot proclaiming the current rend is the new reality, you insensitive clod!

Re:I'm spending 60% of my monthly income on rent

[JustOK]

Plus, bonus frequent flier miles.

Re:There Are More Rooms than People

[rickb928]

SO the solution to homelessness is to house people in these homes with 3-4 strangers.

What could go wrong with that plan?