The Real Reason Rent Is So Damn High
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- čas přidán 21. 04. 2024
- How a Pricing Algorithm took over the housing market.
by @moreperfectunion • Why Is the Rent So Dam...
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I live in California and a lot of people in their 20s and 30s are having to move back in with their parents.
Same here in Toronto. I have a bunch of friends who live with their parents in their 30s
Don't translate
ฉันจะสมัครรับข้อมูลใครก็ตามที่สมัครรับข้อมูลฉันและชอบความคิดเห็นนี้.
There's your problem.
Same here in Wisconsin
I live in CA my parents bought their house in 88 for 185k it’s now worth 1.1 million. I make more than they did and I’ll never be able to afford the street I grew up on.
Brother, I pay $700 for a single room with bathroom, kitchen access.... When I graduated HS in 08, rent went from 350 a month to 700 for an apt near my parent's. Now that same complex, no longer brand new, charges 3150.... Cheapest single bedroom unit, the standard 2b is over 4k, some units go for 5k... Minimum wage is still 7 there ..
Jesus Christ
Where tf you live
The mortgage on my apartment was cheaper than the rent I paid with a roommate.
I pay 795 for a 2 bedroom two bath mobile home and thats average around here
Brother, I pay 575 a month for an entire house.
RealPage is actually owned by Thoma Bravo the 4th largest PE Firm behind Statestreet, Blackrock and Vanguard. Each of these firms sit on each others boards. Their goal for the next generation is to make everyone a generation of renters. They also sit on the WEF board: “You will own nothing and you will be happy.”
Not surprising in the least. Our energy our food our housing is all owned by the same few and they are all working to exactly as you say for us.
Nothing will change till we stop bickering with each other and face our true enemies.
Unironically sounds like communism
this should be top comment. Of course Wall Street mfs are behind this
aren't these people worried about like idk, a corporate pogrom?
I used to build luxury apartments. They're made out of the cheapest materials possible. Even in "High-end" apartments. The entire housing system has been set up to squeeze people out.
Most things today are...
Yup. We've had them pop up by the dozens for yrs now here in NC. That was part of the reason I wasn't surprised to hear us mentioned in the video. We also have the problem where HOA management companies lobbied with our Repub lawmakers who gerrymander themselves into office to give them an advantage over homeowners decades ago. These same lawmakers were the ones who struck down the one measure we managed to get passed to curb the gerrymandering and even tried to give themselves *full* control of *all* elections proceedings until the Fed Supreme Court blocked it for being unconstitutional. Made national news for it. Until voters stop blindly electing politicians nothing is gonna change, and that goes for both sides the Dems here aren't saints either.
facts my brand new build didnt even come with window blinds. WINDOW BLINDS!!! talk about cheap
@@thanosianthemadtitanicI'd much rather buy my own window blinds and not worry about the foundations being made out of basically macaroni
@@jakehero95 as long as people don't understand politicians are like red and green apples, the only real difference is the color of tie they wear, politicians will use the 2 party system to keep us fighting with each other instead of paying attention to what they are doing.
corporations are proactive governments in some of the worst ways while our official legal government is paying 90,000 for a bag of bushings
I was in the military and saw the prices they paid for things when we had to account for all our gear. It goes from top to bottom and everything is overpriced.
@@Ryan-wx1biI paid taxes my entire life so that the military could afford to buy a small box of nails.
60 billion ontop of billions already to ukraine also dont forget
Yeah basically. The guy who owns Amazon owns the Washington Post. They regularly run stories about how we need a 15 dollar minimum wage. Amazon can afford to pay that, his competition can't. It's called regulatory capture, and it's typically the left that enables it.
@@Zadamanim not only that but your taxes werent even enough. Last year tax revenue was 4 trillion but gov expenditures were 6 trillion so paying taxes doesnt even matter theyre just printing away and diluting your money even further. And the icing on the cake like some sadistic joke is that when the gov defaults or we have another market crash the gov will pay all the companies like in 08 with a big stimulus package.
You'll own nothing and be happy. And people still think this is a conspiracy
which meant something different....
It’s not a conspiracy, it’s simply a more profitable way of making money, and in capitalism, businesses will always gravitate to methods that make them the most money. There is no secret council that pulls strings behind the scene (in the sense that you think).
Nah. This is just ruthless capitalism reaching the later stages of how it plays out naturally.
Let everyone seek maximum profit for themselves fully in the spirit of self interest and ultimately things like property laws will result in a small class of "elites" and everyone else being milked in every way that can be achieved
@@duerf5826 I think it's quite a coincidence that half of Biden's cabinet are from the same 0.2% minority demographic (global), and that Biden's children are married to people from that same demographic, and that the owner of the World Trade Center, who had the building complex insured just in time for its destruction in 2001, is also of that same demographic, and that Larry Fink, CEO of Blackrock, is also of that same demographic, and that Bob Iger, CEO of The Walt Disney Company, is also of that same 0.2% minority demographic, and that the President of the European Central Bank, Christine Lagarde, is also of that same 0.2% minority demographic...
Guys... Pretty sure OP meant "conspiracy theory" which has been used to dismiss many theories that have nothing to do to with parties conspiring with one another. He didn't mean people are conspiring he meant this has been dismissed as a crackpot theory when everyone can clearly see what is going on with housing. Please learn context clues, pretty fucking please.
Edit: typos
At this point we're in Feudalism.... Peasants and slaves working their lives away... Having a home seems like a distant dream for most people..
No this is worse.
Unlike now under feudalism people had homes, and more personal freedom.
This is just the logical conclusion of capitalism. People have predicted it for years.
@@jhinthevirtuoso4886 Peasants didn't own their land or homes and had very little freedom of any kind.
@@ajkulac9895 they most definitely had more personal liberties compared to modern existence.
Turning housing in a type of investment is the worst thing that happened in modern history and it's the root cause of so many other issues
Totally agree. It should be criminal for companies to purchase housing.
@@CoynepurseI'd ask if you understand that people who only own one house are using it as an investment, but clearly you don't.
@@jamesmcdonnell2455 It's a spectrum. If you buy a house in an area where housing is becoming more and more scarce relative to population and on top of that you also spend money and time renovating it, then of course you should be compensated when you sell it. I don't think anyone is really against that. Now... A firm buying all the houses in the area, not even renovating them, and selling them off or renting them out for ludicrous prices... That seems more problematic doesn't it?
I think it’s more just investing as whole and real estate is just one part of a bigger problem. The second you can just give money to someone else and expect them to double it, it removes the humanity in earning a dollar. That’s when corps and equity firms do whatever it takes to drive up profits to keep shareholders happy. A lot of scumbag moves are made under the shield of fiduciary responsibility to shareholders that cause these rifts.
housing being and investment is not a modern idea. everyone that buys their own house or land is investing in it.
Owning a home being part of the american dream these days is a f*cking joke
Now it's like owning a condo, having friends move in (and pay a lil bit of rent), and still struggle to buy overpriced groceries.
homes are really cheap in america, just not in manhattan
@@Methos_damn.
That new york dream.
As George Carlin said "It's called the American DREAM, cause you have to be asleep to belive it"
TLDR: Because we allowed corporations to buy private housing, so they can set the supply to optimally exploit the demand. Since they can infinitely gobble up additional supply, the price will never drop.
What do you mean "allow corporations to buy housing"? Why wouldn't they be allowed?
Because thats not cohesive to a functioning society as we are seeing right now. They shoukd build new houses
@@nickporter8893 So investment funds and landlords can have more houses to overvalue, great idea !
The real problem is that it is nearly impossible to create more housing because of government regulations. Prices only go down when the supply is passed the demand
Actually that's a myth, not that coporation buy private housing, but the vast majority of private housing is still owned by people noy by corpos, so believe corporations are not really the issue here, corporations own only .3% of private housing.
"It's going to get worse before it gets better." This was the mantra of 2009-2010. The only thing I heard more than that those years was how privilaged I was.
It's been getting worse for most of my life when is it supposed to get better lmao
After it gets much much worse.
It gets worse before it gets worse
Vacancy penalties resulting in higher taxes that negate profits.
Reward affordability and full units with lower taxes
A tax that stacks on investment properties that aren't leased, like a tax debuff stack for property that is flipped multiple times, may include higher rates for foreign investors, keep sales local, or reduced debuff for local buyer or first time home owners. Just spitballing ideas
This requires a govt that cares and works for the people, that doesn't exist.
@@JoshDragRace0688 You realize that property owners are people too right? And they get to vote?
@@BTrain-is8ch Most property owners that are renting the property out are corporations, and ya they are considered people for a corrupt reason.
@@JoshDragRace0688 Ok and corporations are owned by who? Right. People. Who get to vote. You do realize that right? There is no "the people" who want government intervention. It's just some people. Probably a smaller group of people than you think because I'd go out on a limb and say most people have a higher regard for property rights than you do because they can imagine being on the wrong side of government intervention and not liking it.
It's not "some lines of code," it's not "a pricing algorithm," it's not a "legal grey area." It's a cartel, simple as that. And it's illegal.
It's a cartel because rent prices are being kept high artificially. If that algorithm in particular did not exist then the entirety of the housing market would self-correct. It's capitalism, landlords need to profit and they can't do that without people renting their buildings.
Yeah... In my country there's a law that states clearly that if there's no law aplicable to a certain area, because it's something new or an unforseen circunstance, the law/laws closest to the topic or most relavent will be applied. That fixes a BUNCH of issues while new laws are being made or will be made.
This is yet another clear case of how this law would make this issue vanish, it's colusion and price fixing, clear cut issue, just because they made a "third party" do it and there's an algorith involved are we supposed to pretend that white is black and black is white?
it's not illegal, and it's not price fixing, and it's not a cartel. people have a right to get the highest price they can for the products or services they offer. just because you don't like the price or how that price was determined, doesn't mean it's anything illegal. nor should it be illegal. it's exactly what's happening with car insurance and guess what people aren't complaining about that... maybe you should be. also build more housing and those prices WILL go down. that's your main problem, it's the available stock of housing... that doesn't exist in a lot of places. so prices go up, and these algorithems realize that that stock is low so they know they can get far more money for the same appartment.
@@TheObsesedAnimeFreaks If it isn't price fixing then it is a monopoly.
It's more cause and effect. Nearly 10 million more adult "residents" being injected in under 4 years means that a lot of houses and apartments will have competition. That means the owners can charge more and people will have no choice to pay up because if you don't someone else will.
"Real Page is currently owned by Thoma Bravo, a Chicago-based real estate investment firm that currently maintains over $130 billion in assets."
All tax deductible I assume.
You will own nothig and you will enjoy it. Welcome to Biden's glbalist compliant America.
Same guys who got sued for bankrolling FTX. Guess entire neighborhoods just belong to crypto barons post-Covid.
Stonks
seems perfectly reasonable, legal, and balanced for our economy
My husband and I got incredibly lucky to be able to buy 3 acres of land and have our home built prior to the pandemic - moved in a mere week before things shut down in our state. We worked like hell for over a decade to build up our credit and maintain it while coming off the heels of opioid addictions while living on the bare minimum and renting a 2BR/1B singlewide trailer at $350/mo, but now we have a low mortgage payment, paid up on land taxes, no vehicle payment, our child is fed and taken care of …
Yeah, it’s shit we don’t WANT to pay for, but I’m glad I have it now compared to what people are dealing with currently with just rent alone rising - couldn’t imagine the cost of utilities tacked onto it in the current market for merely trying to find a place to live.
I decided to check properties we were looking at a few years prior to getting what we have now, and prices were a wee high then … but now they are extremely high for a mere 0.5 acres - like $10-12k high for the area we are located. We got 3 acres for $8k in 2018 to start building on. Similar now goes for almost $30k … in a _rural_ backwoods area in WV.
Even the trailer we rented prior went from $350/mo to now $650 according to its listing to match the rise in utility costs that raised their rates over the last few years.
Water bill went from $30 a month to now $70 with the same (or less since the rate increase) amount of gallons of water being used.
Electric goes from $140-180 in the summer and $210 in the winter to now $240 for the summer and $450 for the winter despite graphs showing the same usage as 2-3 years prior.
Internet is the only thing that has remained consistent for us at $70 since we were grandfathered in and pay the original cost of the premium unlimited high speed package when it came to our area (but for a new customer it’s $150).
We didn’t have a cell bill prior as we live in area where there isn’t service, so I can’t compare, but we have had rate increases for the plan we’ve had the last few years.
The cost of living is crazy while wages have remained stagnant. I’m not one to push for minimum wage jobs to be equal to certain professions that have requirements to even work the position, but the wages all around for most jobs do need to raise to give people a chance to get by … because when my husband is complaining about our finances (despite being fairly frugal with our money) and he has a job that pays $36/hr (with per diem and OT)? We still have moments just like we had to do 10 years ago where we sit and figure up costs in advance just to see if we have a wee bit of breathing room from monthly bills, costs of groceries, basic necessities, etc. …. it’s fcked.
The whole reason we opted to get land and build a home was because the mortgage payment we figured up with our monthly earnings should allow us to live more comfortably than if we were to rent. Instead, we have a low mortgage payment, but the cost of everything else went up and shit still feels the same … a never ending struggle of worries over money.
i wish ppl like you were the ones running for congress
Why are you comparing the price of an already built home, to empty land? Especially without factoring in how much you've spent to build your house?
And have wages really stagnated? Because I live in one of the cheapest CoL areas in the States, and even here jobs like "bagger" at grocery stores have had raises of nearly double the previous rates.
I make less than $22/hr, and I would have a very comfortable life, if not for some mistakes made in my past.
@@jamesmcdonnell2455 accounting for inflation + increased prices minimum wage should be roughly 50 something dollars an hour.
@@jamesmcdonnell2455 Because this novel that they wrote belongs in the fiction section. There is no continuity because it's all a fabrication.
In 2005 to 2010 I rented 2 apartments in my area for $450 for a 1 bed 1 bath and $575 for a 2 bed 2 bad. These apartments had been built in 2005 and were nice. Those same apartments today are costing people $2000 to $2500. I could afford those places on my part time sales salary just fresh out of high school heading into college days but kids these days have zero chance at doing it.
There is no way, a 400-500% increase in rent? i know it's gone up all around the country, but this doesn't even seem real.
@@dbased1915 I’m not sure how I’m supposed to prove it to you but in my area it has seen a large increase in population alongside general inflation. A few companies like Blackrock have been buying houses like crazy and not renting them out causing a shortage in housing. They have also built several apartment complexes trying to make up for the population increase. I’m just outside of a major city in the south but still in the suburbs and a lot of people that work in the city have moved here. If you add all that up it has increased an insane amount over 15 years.
@@og-nesley3885Meh that guy is just one of those that thinks a thing is impossible until it happens to them specifically. Waste of time.
Same in California. I rented a 700sq ft for about $850 back in 2008, the same apartment now is $2,350. I guess 26 years has passed but that's about 3x the rent and I know my wages hasn't increased that much.
@@dbased1915 They really are correct numbers... same thing here, live in Colorado. I graduated from hs in 2003 and college in 2007. Those were the going prices...a 2 bed 2 bath was more like $700 depending on the place, but pretty darn close. Also, I bought an 832sqft 100yr old, single family home with a yard, 2bd, 2ba in 2008 for $200k in Denver, CO. I sold it and moved in 2017, but at present today the place is worth about $500k! And it is less than 1000sqft!
The real question is who owns real page. I bet it rhymes with black rock, state street, and vanguard.
If that's the case. This lawsuit is going nowhere.
i think its owned by Thoma Bravo - a private equity and growth capital firm
last name probably ends in -stein, -berg, or -vitz
Big nose little hat.
@@Dralchemy flying a little too close to the sun there, boss.
not only is supply < demand, corporates buying up housing in masses allows them to set a ridiculous price, they will gladly leave those houses vacant rather than reducing the market price
A perfect climate for the squatters, don't you think?
I need more convincing on the vacant house argument. IE, is it worse now than it was before? Are definitions of vacant houses the same across these two data points.
@@MarcMartino That's squatting I could get behind but chances are the cooperation is vigilant enough to catch squatters before it's too late and/or have abundant means to fight squatters
The reason why rent is so high is because "onlyfans" extends to a lot of people who said "I'm hot right now.. I got the money".. Thanks for ruining a dream older than you...
Supply < demand in the disgustingly dense urban areas like in New your and California, but that leaves like the whole rest of the country that people just refuse to do anything with. They are making their own problems. MOVE OUT OF THE CITIES.
Economist checking in. If there are enough people that can afford the higher rent places, then it's just expedited supply/demand. The solution is still the same across the US, need more housing to put downward pressure on prices.
Having an open border is not helping with this issue. It's just widening the gap between supply and demand of low income housing, pushing people up a ladder that they can't afford
No, some landlords rather price themselves out of the market
As an example, if you as a Person own 90% of all homes in an City and use that to price fix the rent in the City, the government SHOULD be able to force you to sell off a large chunk to restore market competition.
(Basically like they forced Microsoft to with their monopoly)
The government shouldn't be able to force you to do anything. They're the reason we're in this mess.
@@HelloHumanRobots you mean every billionair should be able to do anything they want, even starve people out of their home because they arbitrarily buy every food in the City just because they want to ?
Because bying food in itself is not illegal, but still should be prohibited if it negatively affects everyone else
@@HelloHumanRobots You would be in much deeper mess without the government, believe me
@@dronnoh no I wouldn't lol.
@@HelloHumanRobots Yeah, you would be dead or enslaved and too busy working for scraps of food to think about it
Just an FYI to those outside of the area, DMV is commonly used to describe the D.C., Maryland, and Virginia area.. Not the department of motor vehicles in this case, they have a different scam going on.
Lmao thanks for the clarification
😂 Right
Thanks for the Clarification. As a non-American I vaguely recalled that your Automobile Registration Places are called DMVs and I always get that mixed up with the area on which you get shot if you accidentally walk out into.
Price fixing is supposed to be a crime.
it is and this isnt price fixing
I’m fairly certain (like 99%) that it literally IS a crime. The issue is proving that’s what’s actually going down. I mean we can see it clear as day but being able to LEGALLY prove it is another thing. I hope they drop the hammer on this shit but I’m not holding my breath.
And Asmongold thinks it's natural. It's not. It's corruption and forced upon the unwilling like DEI. He's thinking like a communist as if there aren't free markets that exist without price fixing.
@@thekey1175 how is this not price fixing?
@@Thezuule1 wheres the collusion? They know that everyone at minimum has a baseline income decided by the government and that if those people choose to not pay their is an immigrant they can import that will pay.
I've never heard a pro UBI argument that accounts for this. As soon as everyone gets an extra 1k per month, within the next year, rent will consume whatever gains you make.
That's also my biggest argument against UBI. Like you said, within a year, the market will absorb it completely.
It’s a romanticized magic “solution” that people think would solve all their problems. Those with more than 3 braincells know that it’s a bad idea.
Ubi doesnt address supply and demand.
Then you could live in a hotel room or something, or find some other means of housing, but at least you would be able to bathe and eat still.
But yeah something needs to be done about there being caps on rent and such. Its too much.
Make laws to stop that
The idea of a *Land Value Tax* that disincentivizes inefficient use of valuable land has been around since the 1890’s.
It’s where the vastly inferior Property Tax came from.
I will never sell my house at this point.
Diamond hands. To the moon.
Bought mine in 2015 and it’s gone up so much since covid, I’d be dumb to sell and move to a smaller house at a higher interest rate for the same price.
Just stop paying property tax and you won't have to worry about selling. This country is a joke.
My family is getting evicted out the only home we can afford since the land had been paid off, now we have to find someplace else or go homeless 😐
Edit and it might just be that ladder of the 2
Dam I’m sorry. That was happening to me and my family as well. I got injured at work and my pay was cut in half or actually less cause I worked a lot of OT. Collecting workman’s comp checks. Finally found out the property manager was doing things behind the landlord’s back. And my wife and I sat down talked to landlord face to face and explained what was going on, that she gave us 45 days to vacate. And I live in Maui Hawaii. It’s impossible to find a home now since the fires. The owner/landlord says we’re like family to her and she understands and we signed a year lease with her and yes she still wants her money but she’s working with us. My advice if your getting evcited and have no where to go. Sit and talk with your landlord try to work something out. It’s crazy out there. We’re all human. Maybe they will understand Its worth a try.
Mr Krabs, what made you open a second Krusty Krab right next door?
Money
The real solution is to go back to building our own homes from the ground up. Its actually cheaper overall.
The last three homes I’ve lived in I spent 1-2 years building from land that I bought.
Its not all done by me, but I did hire tradesman to the things I’m not certified to do.
On average for a 1500 sq-ft home (3-bed, 2-bath) with a massive garage costs me about $220K-$250K on materials and manpower. Thats way cheaper than just buying a home these days.
Edit: Went to my office to double check the numbers.
got a friend that did this, he ended up with a high quality house for a very good price.
I manage a housing subsidy program and the norm, as of late, has been property managers and landlords refusing to answer the phone or emails regarding available units. It doesn’t matter if you indicate you are representing clients or yourself, they seemingly don’t care enough about vacant units to even respond.
It sounds like this(these) price fixing algorithms and agreements allow them to just not give a shit.
Not just America btw. Rent prices in Canada are just if not more crazy right now.
Yeah shits fucked, hard to think about a positive future
Europe is as bad if not worse... Countries like Portugal, spain , greece , Netherlands, germany.. Rent is ridiculusly high.
thats because canada imports a ton of people and makes building impossible.
Yep, live in Calgary. My rent went from $1,240/month in 2022 to $2,038/month this year. I had to move back in with my parents😢
@@villayan6522bruh that's like 400/year increase. That's insane. I'm sorry you were forced to move:(
You hit the nail on the head, identity politics IS a distraction, designed to divide us over stupid things, so we miss the level of financial disparity increasing.
A classic strategy for the people in power/the rich, while the peasants fight between themselves they are free to do whatever
Divide and conquer is a classic
Yeah but if people are caught up in identity politics instead of focusing on whats important than they almost* deserve what comes to them. The writing was on the walls in blood years before the internet and people still act like there's some magical mystical invisible force destroying our loves and not people with names addresses and assets
I wonder what you think the blanket term identity politics covers? I mean, technically every other issue besides this one is a distraction from this issue. Same could be said for any kind of political issue. Are you not capable of developing thoughtful opinions on multiple issues at once? How does identity politics capture your attention so fully you can't weigh in on this issue?
@@CoynepurseWhat I've noticed is that people who cite idpol almost always put race, gender & sexual orientation over socioeconomic status. While those things are often interrelated & certain people are statistically more likely to struggle financially than others- there seems to almost be this weird dismissal of working class/ poor people's lived experiences if they don't check the right boxes.
"Price fixing is a natural consequence of a free market"
Anyone who is educated in economics knows this. But most people believe that 'free market perfect' propaganda stuff the same powerful people feed them.
So we're sorta stuck, because those people who believe in the idiocy? They can vote too.
And these companies can just lie about it. Or pretend they are not price fixing because they are not doing it directly, its the algorithm!
Canada here. In my province there are cities where a third of the apartments are owned by the same sub-1% of owners. Price have nearly doubled in 5 years. 8 years ago I was making rent checks for Mr&Ms Something. Now it's all management companies. We're told prices are high because it's the current market, but the market is really 3 companies. We were apartment shopping 2 months ago and saw the same 3-4 names over and over and over. The apartment I had a couple years ago was on the market this year at over twice the price I paid in 2019. We moved town last october, we're paying over 600 more than the previous tenant for some IKEA cupboards. I saw a building sell a couple months back and its rent jacked up 60%, not even a fresh coat of paint in the worn, lilac rooms. It's nuts.
In 2019 I rented a two bedroom in Orange County CA for 1900/month, now I would have to pay at least 3075/month for the same exact apartment. It's fucking insane.
My 2-3% raise will surely cover this. I've never had the illusions of being rich but in the past I never imagined I may not be able to cover basic needs in the next 5-10 years. And from what I've seen this shit never goes down, you can only hope for slower increases.
Inflation at its finest.
I rent 600 a month in Texas
@@traincore1955 Probably a roomshare 😅
sure but you also got ur $600 stimmy checks.. you thought those would be free?
It's not just in the USA.
Here in Budapest the rent prices went up more than +100% in the last 7-8 years.
I'm sure it has nothing to do with the hidden inflation from zero cost loans since about 2010, and then suddenly costs materializing in recent years
it's a global financial market, so it's even in Africa, etc.
Nah, it's just that the world realizes that Forint is not a currency which results in as massive inflation
@@mekolayn no mate thats only would be true for the last 2 years but it was going even before that
@@stardusttraveler8766 we have had inflation way longer in assets like houses, from 1970s actually
This is so accurate. Planned on moving to PHX since about 2013. Seemed viable and totally reasonable. Finally did it in late 2022, even with a realtor for a YEAR, and flying out here searching ourselves, we couldn’t find anything that was in our range. Finally settled for an apartment. Currently paying almost 3k for a 2bd 2bth way outside the city.
Where we come from (same country, just 2k miles away to the east), we paid FIVE HUNDRED A MONTH. FOR A HOUSE. In a very nice, beautiful, safe area.
Now that we’re looking for a house to rent again, or maybe buy in the future… the figures are anywhere from 2.7k - 15k PER MONTH. Even worse, to buy, we’d be looking at around 700k- a million. (Granted we currently live and want to live in a nicer, quiet, safe area…. But back home is looking reeeeeeeeal nice right about now). 😅
Here in Montreal, landlords can't raise rent more than 3% a year. Very affordable city rent wise. Fairly simple solution.
How about remove building regulations and allow massive increase in supply of homes?
We have laws like that in Los Angeles, but it doesnt seem to help.
Rent control isn't a solution, it just ensures the price goes up as much as possible and never goes down.
If the property values are high, rent will always rise to match as fast as possible. Or else they'll just tear it down and build new.
Cool in 5 years you paying 15% more
yeah instead they'll just boot you out, slap on a new coat of paint, and raise the rent by 70% for the next set of renters.
1) Purposefully import millions of people to keep labor costs cheap and housing prices high.
2) Pretend you don't know why wages have stagnated and houses are expensive.
3) Blame it on the free market, inflation, the algorithm, greedy landlords or all of the above.
4) Laugh at working class people on the way to the bank.
Welcome to the government.
💯
It's not only in america, this problem is the plague that destroyed the roman empire. Now the 1st world is also going down and the system is happy to crash.
Welcome to America AKA your homeless destination
Thank ‘Build Back Better’ aka “Bidenomics” for most that’s happened the last 3 years.
Thats why rent is going up yet occupancy is going down in my apartment. Wtaf
I rent in Tucson and now I'm wondering if my apartments are using this shit. The apartment model I'm living in has gone up $600 since I moved here in 2020. They really must not care, since despite seeing more empty apartments every year the prices keep going up.
They need to charge the remaining people more to make up for the money they're losing by having less people.
Because they refuse to take a loss in their investments so they force tenants like you to recoup the lost
@@TheMasterblah I suppose you could destroy the building by putting up flyers, in that part of town where the homeless encampments are, saying the building -- address listed -- has lots of empty apartments. You'll also get to have some entertainment from watching police break down doors. But then you'd be Bain, and just wanting to watch the world burn, and you'll be living next to crack houses/apartments.
@@TheMasterblahSame place, and I'm sure the renter next door uses this site. Front property is 2k a month and rear property is 3k a month. Might be stuck living in the poorer side of town unless this bubble bursts in the next few years.
2:19 House prices are up 20%, the CPI is also up 20%. Rent is more expensive because the Fed's money printing is devaluing our paychecks.
The solution has been out there for over 100 years, made popular by Henry George in his 1879 book Progress & Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy. Private land rent is morally untenable, we all have a natural equal right to nature. Landlords should only be able to keep rent that accrues from provision of the building, not the location, as no person created the location. Tax unimproved land value, and return it to the community which created it. Tax land, not man. Read the book, it will give you the burden of clarity in most economic and social problems.
Im 5 minutes in and still havent heard a word "blackrock"
yeah you know how it goes
The real reason.. when a big monopoly corporation buys all the houses.
Brooooo when that shit was peak i sounded like a person to my family and friends.
@@npcimknot958THIS is what’s happening. Overpay for all the homes and create permanent renters. WAKE UP PEOPLE
Guys, it's real estate agencies. Just look it up, Blackrock, etc,etc stopped awhile ago. The real estate agencies wanted that sweet money and overcharging people.
Unfortunately everything will just keep going up.
Inflation is a real bitch.
Not if we fight back
I disagree. Once people don't buy a product it had no choice but to price appropriately.
That is why renting is dumb... I was paying $500 a month for a small 1br apartment and my landlord wanted to raise my rent to $700. So I just bought a 2br house with giant garage and fenced in yard and my mortgage is only $600 lol.
The market will crash inevitably, then the true party begins.
My first apartment was in 2009. I rented a one-bedroom efficiency for $430 a month. It was in the projects and directly across from one of the worst high schools in my city. A few years later that same unit was going for $1,100. It was still in the projects. And still across the street from the worst, most dangerous school in my city.
Price fixing is not the natural outcome of a free market, it's the outcome of monopoly that Adam Smith warned against in his wealth of Nations.
He also argued the state had at least one duty, which was to break them up and ensure fair competition.
This is why housing left to the "free" market doesn't result in lower prices for everyone due to market efficiency, it means price fixing and average housing. So if that's your point, then you just made a great case for regulation.
It's the same thing in healthcare, where we're supposed to have the "best" healthcare system, despite being ranked near 40th, because it's primarily private market. Except that we have the most expensive system, and worse health outcomes than most post-industrial countries, because insurance companies still nickel n' dime people despite being significantly richer after the ACA - which forced companies to compete. Now they just compete for your tax dollars, and run the same garbage system of denying coverage, albeit slightly more ethically.
This isn't about free markets vs central control. This is about a negative externality of a "free" market in which you leverage market power to control the market instead of competing in it - and when someone calls it out they just say - hey, that's how the free market works.
It's literally not. You're not totally free to do anything you want in society. And the points in US history when we've made the most social progress are when the government actually stepped in on behalf of people and said enough was enough, and trust-busted these orgs.
I figure it’ll just get worse and worse till it’s forced to get fixed legally or the people start rolling heads
if people stop getting distracted by non-issues and actually unify. but yeah it literally needs to happen before it's too late
@@Methos_Did someone say $89 billion to Ukraine and Israel?
There is nothing to fix. This is the free market. What you are observing is the effects of mass immigration and overall overpopulation. The demand is huge, that’s all.
@@IronClique wtf does that have to do with rentals in Tucson? we have so many forms of corruption that if ppl actually cared it would be better but as long as you're scrambling all the time this will continue.
@@IronClique a drop in the god damn bucket, dude
And an investment for the future in Ukraine.
Yeah, but no, Russia good guys
And we don't need to counter them in their desire to build a fortress Europe
That means we can just ignore our allies and those we have deals with
Because you think the 60 billion we sent to them to fight a war, basically for us, so we don't have to fight harder later
Is going to change anything LOL
Do you know how little 60 billion is
Look up how much the covid money cost.
And stop drinking Republican koolaid.
You can't drive thru major intersections without seeing homeless. It is out of control. And this also has the impact of increasing home prices to outrageous levels. We are in a dystopia now.
The dystopia isn't here yet. This is still pretty good compared to what's coming.
We now got roaming bands of homeless on bikes riding around town.
It's almost like the local population is getting displaced by some other population moving into the area
California already looks like a 3rd world collapsed country, drive along the highway from Nor Cal to So Cal looks like Tijuana what is there to be proud about anymore? The American Dream is dead 25 trillion spent on meaningless bullshit wars could have rebuilt America into a bunch of Dubais but no treasonous traitors been laundering our money anad having a good old time and now the empire will come crashing down on this 35 trillion dollar debt they racked up leaving us in New Zimbabwe and were just barely starting to feel whats coming.
It is a clear case of carteling. Though the video isn't honest, most of the price increase is from INFLATION.
I'm living in a town where nearly all the rental properties are through one guy. There is no other person managing rental properties at the company he works for. All the properties have been marked up to beyond what those with a pension or minimum wage can afford, unless they fall in the category of 'granny flat'. I cannot move out. Last year, I co-owned a townhouse, but was driven out because the neighbors poisoned the area. The properties that are available reek badly of mold. Property prices have essentially doubled, and are no longer even remotely affordable. This is from Australia...which has been brown-nosing America politically long enough that I've heard about it. Incidentally, we're supposed to be some of the richest people on the planet down here. Yeah, right.
Oh, and it's really difficult to get distracted from not having a place to live, or a car to drive.
Its happening all across the world and in most places even without the help of RealPage. Thats the thing, I dont think RealPage should be held accountable, it just makes it easier for the disgusting real estate moguls doing what they would have done anyway. I live in Zürich, Switzerland and just moved into a place which was actually mostly rented by students. The rent went from 1200CHF to 1900CHF in the last 5 years and I kinda feel bad and angry at the same time. When I talked to the previous renter he said no one can afford this place anymore so all the students are moving out. And let me tell you this, you can tell that my place was made for students and I actually hate it. But thats the only thing I can afford even tho my salary is decent. I studied for 5 years and got myself one of the best degrees in the world and the only thing I can afford is a small student apartment?
This is happening to me. My rent from 900 to 1500. in one year. My landlord told me that they had to run my new lease through this site. I live near Charlotte.
Contact the NC Attorney General and file a complaint against the landlord
That's illegal for sure
I agree with the others here. You need to seek legal advice.
The people that responded above didn't take the 30 seconds to look it up.
There is no legal limit to rent increases in North Carolina. 7 days' notice for rent increases. Must be hard to go to sleep on the 23rd of every month.
It was the end of my lease. It was time to renew also. But I have looked around even the worst apartments near me aren't much difference. What is wild they used the algorithm my rent at 12 months would be 1k over over me at 14 months at 600...
Three business men were in jail. One for price gouging, one for price fixing and one for disrupting the market. Where did you think all the printed money was going? Can't all be contained in the IT bubble, gotta keep those house prices high so people can retire and not see that the government wasted all the taxes and there is nothing to show for it.
as a small landlord I have had to raise my rents a lot because city taxes and insurance keeps doubling on me. To the point Im not comfortable raising rent any more and Im about to not make anything. This is crazy though. Bet its the same here. I used a rent estimator on mine.
I used to work for AMC (apartment management consultants) LLC. Every week we would call all the other apt buildings in our area and exchange rates/data. So even before real star or whatever it’s called, we were fixing the rates
That's called a market survey, and isn't even close to being the same thing.
@@eternalvigilance5697It’s similar. The difference is there’s a 3rd party software involved
@@eternalvigilance5697 ah yes market survey
@@eternalvigilance5697 There has been online and automated versions of this exact thing in every damn industry since the advent of the internet, how can you guys possible be so uncreative and naïve? Algorithms did not start on youtube lmao...
@@kerwynpk Not sure what you are trying to say.
I’m old enough to remember the Apartment Finder business. You’d go to them to help find an apartment that matched your needs and usually Apartments would give you deals to come live at their apartments. 1st month free or no deposit etc.. thing of the past..
Deals are still the thing, but mainly for new construction still in the ramp up phase, or places where occupancy has dropped under a threshold required by certain deals and promises to lenders. Development was slowed down due to Covid and the impact on supply chains but new constructions are starting to finish and you’ll start to see a lot more “special offers” again.
Now pay 1 rent to the website where you found the ad, 3 rents deposit and half a year advance.
I wish I would have used Apartment Finder or similar companies back then. This market is absolutely insane right now!
yep even 2017 i used this and had a multitude of places to choose from around my area for a reasonable rate. 2021 checked again after moving and was stunned almost no availability and prices were up a good 30-50% and this is in the midwest where it's somewhat cheaper. Ended up buying a house late 2021 only cause crypto holdings went up massively.
Only part of the problem, theres also:
Theres money printing by the state
Price freezing during covid by the state
Massive imigration,......
Any landlord can not do that and set a lower price
Problem is more complex than a simple boogie man
I live on the coast of Mississippi. In 2015 the average 2 bedroom apartment was around $650. In 2024 that same apartment is $1,450 for the crap ones. You want one with space and nice they go up to $3,000 a month here. They also changed move in requirements. You have to pay first and last month plus deposit. So $2,900 rent, $1,000 deposit. Basically $4,000 for a cheap apartment. Forget it if you want a pet, while the deposit for a pet is like $300, they also add $450 per month per pet.
At first the whole "suggesting a price" part didn't seem too bad, but when they said there are agents the "make sure" landlords are following the "suggestions" then it became obviously criminal.
bro nobody should "suggest a price", market should set the prices not some moron
Basic Capitalism alone isn't bad, it's prevent government from having a tight grip in everything,
but Capitalism has focused too much on Maximizing Profit,
to the point that it start to hurt Everyone in the name of Profit,
basically, they're trying to grab all the Market,
once they did, they squeeze people for more profit,
and there are no other options, so you got no choice.
i think profit should be capped, this will keep Investors unrealistic expectation in check.
therefore if the profit is already hit the ceiling,
they can focus to actually taking care of the customer,
and Investors should just be happy with Dividend
@@jensenraylight8011bro who could’ve guessed that a system where the coorporations maximizing profit the most rise to the top, while less profit-oriented companies not surving bust-cycles would lead to an economic environment where most companies solely focus on profits? for those on top, it’s a feature, and it can’t be untied from capitalism similar to how the theist justification for it can’t be seperated from monarchism
@@jensenraylight8011 what do you mean there is no other choice? just move to another state or country where the prices are lower and see those "profit maximizers" immediately go bankrupt and all that real estate ends up on sale with half the price. Remember they don't own these properties ,they have massive loans on them.
Maximizing profit is inherent to capitalism. This is accomplished by offering something for a price in a COMPETITIVE MARKET. The problem here is all of this is being run by a handful of monopolies that collaborate to get money for all of them. A monopoly is inherently a death knell to capitalism because it REMOVES COMPETITION. Competition is what keeps prices DOWN. We have anti-monopoly laws that are simply not being enforced.
I laughed out loud when Asmon said 500K for a house was ridiculously expensive.
Not in Canada it isn't.
For a family home, 500K would be considered downright affordable nowadays.
My own house more than doubled in value over the last 8 years. I could literally not afford to buy this house today, not even close.
The housing market is downright fudged up, and the fact that it's happening across countries at the same time makes me wanna reach for my tinfoil hat.
Yeah, around here condo units are like 300k and up. Even if you move all the way up into coldhell snowland, you are not getting a real house for less than half a million. Everything cheaper is mobile homes. Yes, mobile homes! In a place where nobody wants to live, and don't forget you gotta pay "pad rent" because mobile homes are on trailer parks where you DON'T OWN THE LAND under your building!
middle of nowhere fixer-upper, _maybe_ you can get for half a mill
Finance is a global market and as other markets like forex, shares, etc. are harder to make money, it flows into housing. Actually, I think an other financial crisis is probably on the way.
*cries in Swiss* (You will not be able to buy any piece of Land with a building you can live in below 1 Million, owning property is exclusively for the 1%)
Shit you cant even afford rent, 3.5 Rooms for 2.5-3.5k/Month in Zürich.
My dad sold his old flat mid 2018 when he moved into a house, by 2021 the price of that flat had almost doubled, greetings from czechia
This is a worldwide problem. If you look almost anywhere in the EU, but also Australia, Canada, New Zealand. You keep on hearing the same stories. What we all need is more housing, the problem with some countries in the EU for example. Like The Netherlands or Belgium is that there is little land left to build new things on. At the same time they forbid high rises, because it pollutes the landscape.
Both government and private markets have to be encouraged to build new homes and the legislation and taxes for it need to go down drastically. If you look at the amount of taxes and paperwork one needs to do to build or renovate a house it's crazy. This isn't just a state issue. Both governments and private markets need to work together on this or it will fail. Because if the state goes balls deep on building new stuff, without incentivizing the private market, the private market won't budge and nothing will change. Except you just splurred alot of tax payer money to let the landlords stay rich and demand whatever they want. Because the state will never buy or build medium income houses. The state always builds low income stuff. So to help the middle class, you NEED to incentivize the private market.
Legislation can help a long way too, why not force corporations who are into real estate to build new homes. Like say 5 - 10% of their portfolio has to be newly build homes for lower and/or middle incomes. Or you could legislate that an X amount has to be controlled by local or state governments. Corporations just want to make money, of course they will buy low and sell high. But you can keep that model and at the same time force them to use their gains to reinvest in the private market.
To give you an example. My brother has his own store/business. His first landlord asked 800 a month. My brother then renovated the old shack for about 20K. After my brother did that investment, he asked 1000 afterwards. Even though they made a deal if my brother made that investment, he would stay at the lower rent. Of course nothing was put on paper so he was fucked. Long story short, he kicked my brother out. And that store stood empty for about 8 years at a prime location in the city. The guy owns a lot of real estate and he simply didn't care something was standing empty for 8 years. This is what greed looks like. Someone wanting an extra 200 a month, actually cost him. 8 years of rent. If he would've rent it to my brother for 8 years he could've gained around 75K. Now he had nothing, but ultimately he didn't care. And anyone who wanted to start a business never wanted to pay those ridiculous prices. In the end, everybody lost. My brother had to move out, he lost 75K in rent and the state missed out on taxes and other business owners had to find other, less suited locations. This needs to be legislated! Force people to lower rent if something is standing empty for such a long time. People with money to spare can just ask the market whatever they want and with a market this hot. You will always find someone rich, stupid or crazy enough to pay it.
The same problem is noticeable in Europe.
Additionally, even ownership of some real estate or land is much less reliable here than in the USA. Once you have your own land in the USA, you can do almost anything on it. In Europe, you have European Union regulations, national regulations, permissions for everything, ponds, rivers or trees in your area do not really belong to you.
Slowly, people allowed themselves to have such freedom and ''property'' taken away .For example, in Poland, on average, people earn $769.98, and renting an apartment costs about $620.95, not including the costs of living, electricity, etc. Most young people do not have the opportunity to rent or buy something. This has changed since the 2000s. When everything skyrocketed and the equal distribution of earnings and real estate became threefold. Sad times, once upon a time a person could just camping in the forest and sleep peacefully, now you can't even do that because it is forbidden. Greetings to all people who continue to try to live and seek happiness in this fast-paced world.
I remember as an 18 year old rent was $350 for a 2 bedroom apartment. Minimum wage was $5.95. Now its $1800-$2400, but minimum wage has only went up to $15. No idea how people could ever survive on minimum wage these days...
Don’t work minimum wage. That’s all you can do. Is it right? Probably not. But unless you physically can’t why aren’t people working in like a factory? Everywhere I look there are a lot that pay double minimum wage with just a high school diploma. And me i stayed at my parents place to go to a career school so i could make more money. It’s affordable and way less time consuming than college but a lot of people are lazy or don’t try to save the money and make the time to do that when one of those jobs will sustain people rather easily.
@@lost8320 People buy into this laziness epidemic non-sense way too easily. I understand, it allows people to feel a bit more self-important and 'more' accomplished as well as dismiss inherent privilege or luxury, etc.
While you make a good point, it also is devoid of the reality that some people are not 'lazy', but did not have the same ability you did to stay home or take their time setting up their future and had to jump into working the moment they graduated high school... if they weren't already in order to help with bills at home, etc.
I obviously know some of the individuals eluded to - I have a cousin that refuses to work - that said, this for myself and any of my peers for the better part of the last 15+ years has been a minority. Many of the people I know grind - they either work multiple jobs, ton of OT ( when or if available ), sometimes both... those who have the means, stay home and go the schooling route - but the latter has become increasingly less common with both how expensive additional education has become, but also the demand to work more to cover bills leaving less time for studies/classes, etc.
As well, there's plenty of those 'better jobs' that while they exist - are simply not the option eluded too either. Just had a Senior Level Developer lose a job in January. They finally got a job in March ~2 months later - "Oh, that isn't very long that's great!" - Yes and no. They put in substantially more work than the 'average' person in making that happen too; 2513 job applications, 73 hours of interviews, 15 assessments, 8 referrals, 13 final rounds - 4 offers. That's with the education, with substantial job experience, with others assisting... and for an 'available' and 'demanded' position. That's one of many examples - employers also want more experience and education while paying starting wages and people aren't willing to settle for it anymore, too - due to CoL, etc and third party hiring firms that are out of touch with needs and are just trying to check off bullet points for a position they know nothing about, with AI checking for specific wording and auto-denying if x or y are not included, all for the sake of a buck.
While true - there are some bad actors, it's also considerably more complex than just 'tighten the boot straps and work harder, like me'. This is also why anecdotes - do not data make. We each have vastly different experiences.
How long has it been since you were 18, and do you live in a city? In any growing city, there is a huge increase in value of property over time. There's a reason why San fran, Los Angeles, and New york have million dollar shithole homes in them. People highly value living in major cities, so land prices (and therefore housing prices) skyrocket over time.
Making minimum wage shouldn’t be your goal
@@lost8320 Minimum wage should at least earn you a basic living. Period.
its also a lot to do with housing disrupted by airbnb. you used to have hundreds of smaller spaces for rent like duplexes, garage apartments, second homes competing with apartment complexes and now they all go to airbnb. if you dont believe me check out when prices started to climb
when huge companies started by streets at a time
After Crypto Bro, Web3 Bro ,AI Bro, now we get Housing Bro
Tbh, I never really here about the airBNB aspect, its always people saying institutional investors which didn't seem fitting for my area (shore area of new jersey). Never really put the airBNB link with that, but it makes absolute sense!
I was going to rent in Arizona at that time and plenty of properties would not lease units despite having vacancies. Magically the closest time a unit could be leased was in october of that year, and magically all of the units across many properties were priced the same, at least 30% higher than what it was initially advertised for. Once presented with a lease, the price was always higher than advertised even tho the price was verbally confirmed by the leasing agency, and the lease application expired in 24hrs. The agencies were raking in money from application fees, that ultimately were not refunded, even though they changed the price on the lease without telling the applicant. They were making way more money this way with vacant units, than they would if they were filled.
so glad you're talking about this. this needs to be publicized more often because everyone i talkto has ran into this. and we're in detroit.. we used to have cheapest rents in the nation.. and some of hte most ghetto/lowest land values are still kind of high here
In Ontario it used to be 700 900 a month for a 2 bedroom its now 1500-2300 for a 1 bedroom appartment
3000 in Toronto now
@@jacobferrera1777 Jesus
Sounds like Tampa. Studio apartments are average $1500/month.
I used to be able to rent a 3 bedroom house with a garage and backyard for $1300….
@@jacobferrera1777 more like 2000
wtf
Rent is not just the US problem.. Just checked the local pricing in Lithuania and the pricing is insane. It's 3 times what i pay for mortgage or even more. If you're on minimum wage it will easily take about half of your earnings just to rent a 1 room apartment. How do people even live like this.. I checked less than a year ago and it was half of what it is now.
Portugal too 😅
Its everyhere it seems
Even worse you can pay £1600 a month on rent but can you get a £700 mortgage? No! You don't qualify.
The game is rigged
Croatia too. Plus we have food prices like we live in Luxemburg
how we live? We dont. Unless we get with 10 roomates in 2 bedroom, we dont live
Did you know in america minimum wage isnt enough to even pay for JUST rent?
I'm 63 years old and I grew up in a middle class home that my dad paid $40k for. The exact same house today is valued at $470k. No changes to ANYTHING inside or on the lot. Explain to me what makes the home worth TEN TIMES as much today. Oh right....GREED. Housing is used to make people rich now, not to give people homes. Rent or move to the nearest homeless encampment, your choice.
The safe fix, is to have your governing bodies maintain and administer a bulk of affordable rentals with price based on median income, The amount of properties would need to be to a degree that poses a reasonable threat to the renting market. The result is a rental market which must respond to the competition, as your customers will consider other options when things get too bad, and you don't wind up introducing legislation which involves seizure or direct control of business decisions. There are issues however: first, the initial cost would be enormous, second, the ongoing cost is hard to consider as it is intended as a price modifying feature of the market it is in, third, as we're seeing in the UK, this is the perfect kind of program to get its funding stealthily lowered over time, people care little enough when not directly involved with it, and the programs relevance can be diminished as its funding is siphoned away.
All of the easy fixes to this are paths to tyranny, all of the intelligent fixes to this are extremely expensive and hard to get traction on, all of the cheap fixes to this are ineffective. This isn't even a matter of people acting in bad faith, this is a matter of a market without dominators, getting dominated, its the process of congealment and monopolization that hits all large markets eventually, big fish gets bigger, until there is not enough food for small fish to get big.
dude.. its the same crap up here in Canada.
rent has gone up 150% in the past 5 years!! its crazy! 5 years ago I was paying 700/month for a 1 bedroom and now 1 bedrooms are $1800-$2500/month. and my wife and I want kids so we want a house, maybe 3 bedrooms with a yard etc. doesnt even need to be newly built or anything; $4000+/month !!! and Ive noticed all the rental listings are by property managers who usually turn commenting off because they know that everyone is pissed off and the landlords dont want to deal with renters telling them to f off with those prices lol.
it's a worldwide problem, globalization and finances made the world 1 market, housing prices going up all over the world, from America, Europe, Asia, Africa, etc.
Countryside New Zealand reporting in.
Avg house price is 1.2mil, you need to earn 150k/yr to qualify for a loan and people are having to pay $300/wk to either share their room or even their bed with a stranger.
27% of homes sit empty while 100s sleep in their cars
Is that in New Zealand dollars though?
LOL bullshit.
You can find a decent Auckland flat (with flatmates) for $250 a week. That's roughly US$700 a month.
House prices skyrocketed with Covid, but have dropped 20% from their ridiculous peak. The zoning deregulation means there's an enormous supply of small townhouses.
@SD78 yes but noone should be forced to live in a flat or unit for them prices
Its the same story in aus, rent got put up 100 dollars a week ago, was 395 when I moved in here 3 years ago, it's now 525 for a 3 bed 1 bath 1 garage that barely fits my car, and this is considered cheap now, the landlord has told me the price is going to 590 after another year
@vtgaming9204 with the current inflation, NZ$250 per week is NOTHING. You can rent a two bedroom CBD apartment for NZ$600 per week. The only kicker is if you have a family and want to save for your own home.
I think this is only half the picture. When people can't afford to buy homes, they have to rent. When lots of people can't afford to buy homes, the demand for rentals increases, when the demand goes up, people compete for places to rent via willingness to pay more ( for that sweet wrap around porch or that primo location)
The bigger problem may be the fact that people simply can't afford to buy a home for themselves.
Worse, with skyrocketing rent rates... they likely never will.
Price fixing is not the natural outcome of a free market. A free market requires effective regulation to keep it free, otherwise it becomes a set of monopolies which stifle any freedom in the market.
Price fixing is what you get from a planned market not a free one. Whether that planning is by the state or a cartel of businesses, it’s the opposite of a free market.
People who think a free market means no rules, don’t understand economics.
Alaskan companies do this too. My rent was $900 in 2020. By 2023 the rent jumped up to $1500. I was talking to the front desk as I left, and couldn't believe how much the prices went up. She explained it's due to the price fixing. I'm sure she wasn't supposed to divulge that information but, she thought it was ethically wrong
I'm in Phoenix and directly effected by this. When I moved here in 2021 my rent was 1650, then the next year it was 1900, the following year... 2800. I said no thanks and moved to a different complex. My rent didn't change when I renewed this year at the new place. Funny enough both apartment complexes use Realpage.
If you were affected wouldn't the new place behave like the first one?
@@SBqwerty You would think so but my renewal came after the DOJ so I'm just as perplexed.
Try being a landlord. Try dealing with the huge number of people that don't pay their rent on time, that damage the property, that create chaos and insecurity for neighbors and that act as if the landlord owes them housing. I was renting one of my homes but Colorado has passed a law that forces landlords to renew leases to problem tenants. The only way you can get rid of them is to sell the property but then you have to cut them a check for three months worth of rent.
There are so many tenants that stop paying rent which forces you to go through an eviction. It is a process that takes months. Not only do you lose months worth of income but you have to pay thousands for lawyers and you even have to pay the sheriff to evict the tenants.
I'm selling my second home. It isn't worth the hassle and expense. Being a landlord exposes you to a very ugly side of humanity.
"I wonder how they could stop this?"
Antitrust lawsuits from the Department of Justice.
Rent control.
Public housing investments.
Just make housing a right, seize vacant homes and then give them to people.
There's literally so many easy answers to this question.
This isn't the only reason. We have at least an additional 25-30 million people in the country who were not previously present in any meaningful way to create a natural demand for new housing, so there is a MASSIVE strain on the availability. When house-hunting in California, you will see a phenomenon of entering a place for rent to find that it is literally filled, wall-to-wall, with twin-size mattresses. No furniture, maybe a few flatscreens, maybe an X-box, a few lamps, but no chairs, tables, couches, no books, magazines, personal effects, none of that. Only mattresses, some suitcases, and closets FILLED floor to shelving with clothing of all sizes. It's obvious MANY people are dwelling there but the agent will play dumb as to just what's going on.
For example, a 2-bedroom house which would normally accommodate a single family, with parents in the master and a kid or two or even three in the second bedroom, has 6 mattresses in the master, 5 or 6 in the second BR, and another 10-15 spread throughout the house, from living room to office room/dining room, even one shoved into the breakfast nook, and in some cases more in the garage. I personally have been in a number of houses like this, the most astounding one being a three story hillside house that must have had upwards of 45+ mattresses in it. In order to 'tour' the house we had to walk in-between the mattresses single-file because there were so many and they were so close together. When's the last time you heard this story reported on the MSM?
Of course, nobody is there when you're there but you and the agent. Ask the agent what's going on and they'll conveniently inform you that 'it's on the current lists, but 'it's not THEIR listing' - they're only accommodating your interest in the place. There's no cars outside, nothing but mattresses and left over chip bags and fast-food containers, suitcases, clothes. There's no silverware or dishes or soaps/shampoos, etc, or any other evidence of 'legitimate' occupation except it's obvious that at least 20 or more people are living in the single-family home in the single-family neighborhood.
Add to this the fact that many, if not all, of the apartment rental conglomerates like Avalon will offer discounted rent to 'low-income' claimants including non-citizens and Section 8 mental health condition 'claimants', and what you get is a circumstance where you're paying a thousand or more dollars than your neighbor living next door in a unit that's the duplicate of yours. You also see the same over-occupation phenomenon going on in the apartment buildings, with 10+ people living in 2 bedroom units. Now, YOU couldn't get away with this, but the realtors and apartment building get SUBSIDIES FROM THE CALIFORNIA GOVERNMENT to house ALL these people - not only at YOUR expense tax-wise, but TO YOUR EXCLUSION. Good luck trying to get the same deal.
Then feel free to drive down the street to the local Motel 6 and learn for yourself that there are no vacancies because every single room is a long-term rental.
A huge part of the problem is also just: people being single and single longer, this also creates more demand.
Not to mention in many of those places they have so many regulations that it costs tens of thousands of dollars just to be told you can MAYBE build a house in that spot. And yet tens of thousands more to get every little nail and screw inspected and passed through regulation for "safety" because those nails might not be eco friendly and could even have asbestos in them or some other nonsense.
@@zippyj.r.4486Also homeowners don't want low cost apartments nearby so vote against them being developed.
@@michaelh878 That could be an issue depending on where it takes place I suppose. I've not personally seen a vote come up locally in the ten years I've owned and had apartments growing like weeds near me.
@@zippyj.r.4486 to be honest, there is *already* a *veeeeery low set of standarts* in the US. Compared to other developed countrys, the US hits one of the lowest of all.
Dude, just compare the cheap "wood-framing" of walls. You'll find in West-EU solid walls of 14-15 inches as standart made out of bricks or concrete with reinforced steel. And so are the Floors, thick & heavy.
• Meanwhile, a standart US "wall" is mostly (85%) hollow, with 1 finger thick paper/wood pressed plates just covered.
"Walls" you can hit through with your fist or body. Doors so cheap/thin or/and low cost build in, you also here easy can "kick in" or use of body force entry.
Windows,...oof realy the US should have long time ago make use of the german *Tilt & Turn Window* systems. With several layers of glass within, to make use of the Air inbetween as isolation. Saving bugs in electric costs solo by AC is a huuuge part.
Yet
Pricing does by far not reflect the realy cheap build path & material used but rather as if it's a solid build house.
There is the 1st major point were the US puplic is hard scammed on.
*Lack* of regulations, allowing this sort of things happening as well as *to low standarts.*
me, in my 30's, never having been able to afford rent in any apartment in any state with any job I've ever had. W Economy.
Damn, what's your job?.
I have an above average european salary and that's not enough to rent anything in the US, all of the prices I see are absolutely out of question. It's like elite housing for the upper class here. What the fuck is going on there?
Rip dating life
Only going to get worse
If you're over 30 you have no excuse to not be a home owner lol...
@@LordGlorfindel and you do?
I live in the Kansas City Metro Area my whole life, and unfortunately and being priced out and having to move to southern Illinois, due to Rent being hiked up so much now and not able to buy a home despite paying $1100+ in rent and I'm on the low end of rent too.
meanwhile, the price of everything is up and the irs wants more tax money.
yet, my rate of pay has not increased. . .kinda weird everyone else gets more money except us.
5 years ago my rent was $615 with *ALL UTILITIES INCLUDED* (And we could have AC in the windows) (If we lost our keys it was $20 per key to replace it - 3 keys) ((TOTAL: $615)
Now rent is $900 + utilities + pest control + renters insurance + garbage (And we can't have AC in the windows) (If we lose our keys it is $50 per key to replace it - 4 keys) ((TOTAL: $1,200-1,900))
*WAS OWNED by a local capitalist company, now it is owned by a corporation probably from cali or ny/nj*
In Quebec we have laws against this but it's still not enough. Landlords can't unreasonably raise the price on a current tenant but they can raise it if the tenant moves (actually they technically can't but there are ways around it).
So in the last 2 years, my rent "only" increased by 10% where the usual increase used to be around 2% yearly but because the market is so bad, I was better off accepting the 5% yearly than moving. And because the market is bad, the 5% is not unreasonable so I can't contest it. If I move to an equivalent apartment right now, it would cost me at least 40% more so I'm stuck in my current place for a while.
So even with these laws we can't fight the market increase -_-
Wow that's insane..... What part of the country are you in?
@@maxinoume
Yah, laws that just try to stop the bleeding instead of preventing wounds don't do much to help.
Sadly most laws these days are made to try and stop bleeding instead of prevent wounds. >.>
@@toorimakun Those laws are factually terrible because they put a slump on new buildings being built.
The company from the video does more than just price fixing however, and that should be illegal.
What works is decreasing building regulations and zoning laws, which aren't there for security and structural reasons but to fix the market by stopping new housing being built and old ones being demolished for ones with more floors. Besides that, gov loan programs for citizen building projects. More effective than paying rent for unemployed people or subsidizing it (that's something both common in Europe, not so much on your side of the pond). But governments don't like that because in the end they profit from inflation and price increases. Makes the numbers go bigger, and the gov doesn't care if the economy actually increased 3% or if the prices have gone up 7%, the overall real economic activity decreased but the gdp is up 3% because of the inflation.
I lived at a place that was around $600/mo and it steadily creeped up to $1400/mo. It literally forced us out because we were barely making it at $600/mo back then. Was ridiculous.
My first apartment back in 2010 was $400 a month. Just looked at it and it's now listed for $1200 a month. It's insane
Another thing this impacts is that rent increases for restaurants as well. Because rent increases for restaurants, prices of food increases at those restaurants which now adds that food costs increase as well.
This is right to some degree, but it vastly overestimates the blame. The increase in interest rates caused rental prices to explode as its largely what determines base rental price.
For example:
@3% interest a 500k house with 100k down payment (400k loan) costs around $1,686 per month.
@7% that skyrockets to a monthly payment of $2,661
Now include a 7 to 8% inflation rate on everything from utilities to repairs (construction materials are well above the 5-7% inflation average).
Home prices increasing will increase property taxes, this is state by state.
Now apply this overly generalized formula
(Flat cost discussed above+depreciation of assets/repairs) + (monthly loan+utilities+future repair costs+property tax) × profit margin %= monthly rent
If just the monthly payment increase is any indicator... i think you can tell why prices have skyrocketed
As a side note, since nobody can afford a home... it causes rental prices to skyrocket because there is so much inflation on the demand side.
People not understanding the very basics of economics is why they vote so poorly and gives videos like this to be manipulated so easily.
100% right about older people not understanding tech. All of these people are blaming an *algorithm* that is deciding the price.
People write algorithms.
It's just like CZcams and other tech companies that just 'blame the algorithm' to avoid the perception of malicious intent.
Kinda true, with youtube, the algorithm is used to push a video in a certain time frame when it's gaining traction but only sustaining to the point that the push still brings in views, its an automatic process thats been fined from the early stage where sometimes a inappropriate video was boosted in an incorrect audience (the elsagate/spidergate stuff for kids)
There's a reason people can't buy homes, can't afford rent, end up homeless.
Sometimes it's their fault.
Sometimes it's this.
I feel like focusing on a single app/service is not going to solve the problem. Rent going up 20% over the last 4 years in this economy is not surprising. Steps need to be taken to lower prices as much as possible, but the current administration is against cheap energy - Energy prices effect everything,
Bringing in millions of extra people when those already here can't survive - Criminal Aliens are being given $3,000 a month on top of housing and food by the NYC government while the American populace will be lucky to get a showbox apartment with a detached community bathroom for $2,200 a month.
Chicago shut down community centers, and diverted tax dollars allocated for low income neighborhoods to the development of a camp to house criminal aliens,
Then the current administration sends hundreds of billions of dollars to fund wars in other countries.
Everything is up because the economy has not recovered from 2020, and there is higher demand than ever. These problems are only exacerbated by the policies put forth by our rulers.
I moved to Phoenix in 2016 and a 2 bedroom apartment wouls go for about $1200 per month. Today, you are looking at around $2400-2500 per month. I've seen old houses in the Phoenix area go from the upper $100k range in 2016 to $400k+ today. There is definitely sort of rigging going on inthe area, as well as massive population growth. The Trillion dollar question is coming up with a way to fix it. I've had multiple coworkers leave Phoenix due to being priced out of the area.
As a veteran Chinese I can tell my American young friends we shared the same future.
😭
Isn't the real estate price going down in China nowadays?
@@orionmedivh5859going down? You mean from extremely impossible to afford to really imposible to afford?😂
It's a global finance market, it's also happening in Europe, etc. everywhere, including Africa.
@@jz5811 it's not like housing is affordable anywhere.
In 2014, I started renting a place at $700 a month. When I left in 2022, it was because my unit's new rent was $1.6k a month. Over 100% increase in less than a decade.
My neighbor moved out as well. Their rent went from $900 when they moved in about a year after I did, to $2.4k for the upcoming year.
This was in Dunedin, FL, next to Tampa. Everywhere I looked that wasn't the ghetto, my unit was a steal. The price hike kicked a lot of people further away from Tampa and towards the badlands: Moonlake, Spring Hill, and New Port Richey. *shudders*
I feel like if it were to get shut down the prices could stay the same if everyone agrees to do it. Either by communicating, which would be price fixing all over again, or by a silent agreement. But as soon as someone tries to compete by improving their units or lowering their prices then others will follow so that they don't fall behind.
You don’t need landlords to communicate or “set” prices in any way for rents to run away.
Any full complex adjust their rates until they reach 92%~95% occupancy. To be over 95% full is to “fail” by setting your prices too low, to be under 92% full is to “fail” by setting prices too high.
In today’s market, fewer people are buying/more people are renting and increasing demand for rentals.
For Reference: 1 firm with equity capital owns MORE property than every individual (person with internet as you mentioned) who jumped into the ABnB rental market since 2018. There are 13 large firms in the rental/housing market.
What this is, is an real-world Stock Exchange, and it will reflect the stock market ownership percentages EXACTLY.
There are four other critical things impacting the cost of rentals not mentioned in this video. (1) Fewer and fewer houses for renters to transition into from being renters to house owners. (2) The floor for rental pricing is whatever the government will pay in HUD subsidies. If a slum can get $800 from the government, the non slums which, offer more and are worth more will charge more. (3) Inexperienced young adults receiving college subsidies and guaranteed loans tend to over pay for rentals while attending college. (4) Unfettered immigration which, increases the demand for housing at a rate that dramatically outpaces the dwindling supply.
Most real estate is owned and operated by a relatively small conglomeration of companies. My area has been extremely affected by this, home owners selling to these companies are just as much of an issue since they don't really pay attention to whose purchasing their home. This would also apply to the real estate agents handling the sales if the owners are not doing them themselves.
Same story here in Australia as well as a housing shortage it is mental. 30 to 40 people show up to rentals up on the market. Crazy and usually the average is around $650 per week for bare minimum decent housing with a nice neighbourhood is like $800 to $1000 per week. Even more if in Sydney.
And a lot of the problem in AUS is that State Govs have not built a new town or city in 50 to 100 years. No country town has the infrastructure added for extra population. They, govts, may be afraid of the Greens who oppose any developments especially dam building, water supply, in this dry country, yet the Federal Govt keeps importing more and more people via immigration levels.
Anyone else notice that they stopped using "Mafia" to discribe a group of individuals doing illegal activites and now call it a "Cartel" seems odd to me
WHOS THEY
My explain is the actual Mafia was the big boogyman for the years it was referred to as such and now in modern times the boogymen are the cartels so we refer to other bad organizations as such.
Tf is odd about it at all lol and who are you even talking about
Cartels are significantly bigger in scale compared to the Mafia of today.
@@45noopis someone trying to make it about race or some shit
Problem with this theory is the people/politicians in the video keep throwing around the words "control" and "algorithms" when there's no actual control involved, it's information the market is free to incorporate to their plans or ignore. Same braindead logic would say that the Multiple Listing Service for real estate is also "price fixing". That's backwards. Transparency in pricing virtually always favors the customer because they're the one at an information disadvantage 99% of the time.
As a landlord myself on a single family home I base my pricing on my mortgage, estimated upcoming expenses/repairs, and a small amount for rainy days. My main drive is my mortgage and with new housing prices being what they are in my case that's the main factor in rising prices.
They need to tax vacancy. The more vacancy landlords have the more taxes they have to pay.
That wouldn't fix anything... they'd just increase rent even more
@@gorgeousfreeman1318 and they would lose more people till they have no tenants to increase rent
@@gorgeousfreeman1318 It'd probably be the opposite. If it cost landlords to price gouge to the point where nobody would rent with them, then they'd be forced to lower prices and allow people to actually rent their properties instead of sitting on them indefinitely as a speculative asset, just waiting to sell their home to a megacorporation or an even richer landlord who can easily take on the full price of the home in one lump sum. The major problem is people looking at homes as an investment, when the government needs to be more interested in viewing homes in their country as actual homes for their citizens (many of whom are homeless because they can't afford rent, therefor losing jobs and turning to drugs and crime instead of working).
@@wolfangwarriorjr7246 so are you living in a tent on the streets to stan your belief and morals?
ofc you're not.
Taxing vacancy doesn't work because eventually people pay those rent prices because they have no choice. There's a lot of people right now getting roomates to split the cost. Vacant housing doesn't stay vacant for long since people obviously need homes. This is why housing shouldn't be under the private sector to begin with.