Greatest income rise in nearly 50 years…http://www.nytimes.com/2016/09/14/business/economy/us-census-household-income-poverty-wealth-2015.html?_r=0
This new found money will be funneled into rents, thanks to government caused housing shortages…The low end Class C units will see the most rent increases…
I saw data that shows much of the income gain has been lost so far in 2016. I agree with your premise that the bottom end rents will go up with minimum wage increases though. That’s why minimum wage increase doesn’t increase the standard of living.
Not a good news. Usually smart money left the retail (aka dumb) money holding the bag. Is how it happened in stock market. Would expect the same for RE.
Wall street money wasnt smart at all…they followed the lead of pioneers like Way point. …The influence of wall street has been very limited and tenative. …The great thing about real estate investing is that it has never been dominated by major players …the hedge funds didnt start buying till 2012…I was buying in 2009 as were many other small timers…
That’s not good in terms of voting power for rent control and other actions.
Agreed…but maybe like with same-sex marriage if everyone in the nation is facing it and discussing it (pros and cons) and there is enough folks against it (that other 50% then) why can’t this be up for revisiting by the Supreme Court? Isn’t it a fact that the majority of economists out there believe rent control actually hurts the system? So how come no one wants to listen to these “experts” on this one subject but will on others?
I just didn’t want to start Another thread for just general news.
I don’t see a legal case against rent control, if by rent control you mean price control. Government has long had the power to set the price of many things, like how much utility company can charge for power.
On the other hand, the “just cause eviction” crap should be challenged. I don’t see why it’s legal. If both sides agree the rental term to be one year, it should just be one year, not life long.
Ask Trump to appoint conservative judges and let the Uber liberal judges to retire or die naturally and peacefully and due to age
There are so many things wrong about rent control. All I am asking for is some fairness in the rules, so that small mom and pop owners like me are not particularly hurt by it. How can you say it is perfectly legal to discriminate and arbitrarily have rent control on just say buildings built prior to 1979??? Who came up with that idea and year? Yeah, probably some legislator who had a 1980 built building…
If a landlord has freedom to terminate a tenant at his own will, rent control becomes pretty much useless, unless there is no vacancy decontrol (which means future tenant rent is still regulated w.r.t. to current rent). So you must have at least one of the two (just-cause eviction and no vacancy decontrol) for rent control to be effective.
I actually think a rent control + no vacancy decontrol combination can better reflect the spirit of rent control. That way if landlord does not like a tenant he can still kick the tenant out, which represents some form of property rights. And no vacancy decontrol for anyone means the big rent increase a lucky landlords gets from tenant turnover will not happen so it’s more fair to all landlords at the society level. I am not saying I support this idea, just saying it sounds relatively more fair than the current implementation.
I don’t know how comparable the utility industry example is for government price control. Utility companies tend to be monopolies, which I believe is the primary reason it’s so highly regulated. Rental prices should be closely related to housing prices which is not regulated at all. Regulating one without the other leads to ellis evictions or other moves that shift from regulated to unregulated.
If you think rent control is fair, just think in times when things are bad whether landlords get any protection that tenants will continue to stay and pay the same rent above market. Given the monopolies the utility companies are essentially in this position that your customers are locked in no matter what.
99% of politics is emotional reactions to headlines. Facts don’t matter.
I think the biggest issue with rent control - in SF anyways is the annual rental increase allow. It does not match with inflation but a percentage (60% of CPI) of that. So given amount of time - the market rates for everything except for the rent is miss-aligned. Example: below market rent but any repairs or maintenance at the CURRENT market rate - that is painful the longer the tenant stays! At lease make it the same or a little above like San Jose (5%)
I am not saying price controls is fair. All I said is that it exists in other contexts. I think it makes very little economic sense. In the end it’s the renters who got hurt most.
The just cause eviction just rubs me the wrong way. It’s a blatant violation of property right. I like your idea of no vacancy rule. But like all rules that try to cheat basic economic logic it’s just a band aid trying to paper over the illogic of price control. There is no good way to do it.
Your suggestion would be a positive move towards a more level playing field. This is the one case scenario that bothers me to no end, since it was a true case told to me by my Mom. Her friend’s sibling had a rent controlled apartment and lived in it with her dependent adult child. She was old enough so let’s assume on medicare. She unfortunately dies. Well, her dependent adult child who earns way more than she did then inherited that rent controlled apartment at the same rate. Come on, that is blatantly wrong. Yes, the son ought to get the apartment since he was living there with the mom but shouldn’t the rent be indexed to reflect the new situation with his income? Frankly, the owner will die before seeing any real rent increase.
You all are delusional. .Trumps doesn’t care about rent control…He owns hotels and new post 1979 buildings. .Rent control repeal is not a national issue…In fact in California the majority liberals are pro rent control. …Buy other types of real estate or out of state if rent control bothers you…Or better yet build new. …no rent control on post 1979 construction. .
Right, Trump only cares about himself. The worlds biggest con man.
Well, some bad liberals are proposing to rent control new buildings as well.