Rents go up ... because the price of the home goes up.
And rent will ALWAYS be more than the cost of buying the same home. Because the investor has to pay the mortgage and still make a profit.
So when:
property taxes go up, rent goes up
interest rates go up, rent goes up
land prices go up, rent goes up
construction materials go up, rent goes up
etc etc
renters often think they are not affected by these things, but they are, but are to ill informed to know it.
The truth is, when you are renting, you are paying someone else’s mortgage. The main reason the vast majority rent is because they wrongly “think” they can’t afford to buy, but that’s flat out wrong.
What they “can’t” afford is the .... DOWNPAYMENT.
And they can’t afford that because they don’t know the financial discipline to save the money up.
And they can’t afford that because they don’t know the financial discipline to save the money up.
The arrogance by some on this site is sometimes off the charts.
True - but not always. Some people just don’t have enough income to save for a down payment. I feel for young people today. If you want to buy a house in our neck of the woods, you’re looking at a minimum of $700 to $800 thousand. How much do you need to save for a down payment? Well, if you go with the 10%, your mortgage payment (if you’re even approved) is going to be astronomical. At that point, the house owns you.
Little wonder people have scrapped the idea of home ownership, family, etc. It’s almost unattainable....unless, of course, you’re on welfare! Somehow these people breed like rabbits.
Rents go up because landlords must now factor in the possibility of eviction moratoriums. I would expect rents to pretty much double for that reason.