Topic: U.S. rent has increased 175% faster than household income over past 20 years (Read 352 times)

Mortgage in US AFAIK is expensive so I think that its not really a good choice and since a lot has been laid off in the pandemic then most I think are renting and the prices on some places are astronomically high like New York. The reason that the rise in rents is because land as a resource becomes more scarce overtime so they have to raise the price of real estate and the inflation.

This is what governments do not understand, they want to increase the number of people that own houses and they think that the way to do it is to give more credit to their citizens not understanding that the number of houses relative to the number of people in the country is going to remain the same but now the amount of money that is chasing the very same houses now has increased many times over, this means that the price of houses goes up and the dream of everyone having a house disappears, this is simple economics and yet they do not get it.

In this field, cryptocurrency is only a secondary solution that has to be associated or has to coexist with the main solution.
And that's companies or people to develop affordable and economical properties that could be paid for the longest term and of course, within the budget.

However, due to high demand, it really is kind of impossible to execute that. Unless government would lend a hand to make it happen. 

I think the best platform is to have a decentralized community that will help fund a development company to build economical houses IMO.

Real estate changes caused by the pandemic have forced more people to stay in their homes than in any previous years. Many spa, leisure and summer trips have been canceled. Immobilizer restrictions are forcing more people to stay home.

The role of governments comes in trying to help these people.

The decline in new homes is a problem in some countries in my country there is a real estate glut. there are a lot of real estate and apartments that no one wants to buy or rent.

It is pretty much expected to have an increase on rental fees specially we are talking about a country like US having a really big population despite of the ideology that it is a rich country and have lots of job opportunities for those who wanted to go overseas for work making it a crowded country that every areas is being populated by too many individuals that turn things out that even it is known to be a rich one, the reality behind says that it is not because of many people having no houses or even money to sustain themselves to get a decent home to live with. The increase of demand with limited available spaces to live in makes the rental get to even higher price increase.

With regards to what crypto can do with this matter, none because why it seems people always do put linkage between societal problems crypto when at the first place it can be solved by the society alone not always depending on what can crypto offer to help.

Another effect of the population Bloom or rather I would say Burst..this is something that is to be expected since what we are seeing is nothing but unplanned families and corporate industrialization finally taking effect. The land is constant... people keep on increasing, it would honestly take a lot of days to stabilize the price and this is actually happening during covid when people literally have nowhere to go. There were actually announcements by the media in the country I live in where they urged the owners to reduce the rent and guess what ? They increased it, especially for foreigners. This is a very common complication... Renting an appartment at places is equivalent of the down payment if you save for an year. I do think that Government should impose heavy fines on people who are doing things like that, it's illegal !! This is nothing but public exploitation.
Never settle for an over-expensive rent it would just give the house owner more courage to increase it even more for the next renter..

In those prime places if you have a house that you can rent to someone, you can charge a very high price and it still gets rented, that is the issue why things are very expensive, because it will be rented anyway. I know a person who rents his house for nearly my whole salary, it is not like an incredible unbelievable house, it is just a regular flat in an apartment and dude rents it for about 80% of my salary, when the previous renter moved out it took him 3 days to find a new one, and that is why it is very expensive.

I think as long as people keep paying for things, life will keep becoming more expensive, cars are being sold for a lot more these days for example but they are sold more as well, those type of things are the reason why we have very expensive life and our salaries are shrinking compared to purchasing power it used to have.

Intresting to know how many people should die during covid to make houses cheaper

It is interesting to see that in countries such as E.E.U.U there is this type of limiting, due to a wide variety of citizens from many countries, is for renting options at day time and with great offer. In Venezuela, the contrast is similar, only that if there is room for rent and prices are in the heavens, in some cases the rents range between 400-600USD per month where they demand 2 months of previous deposit, plus 1 month for additional services, Among others, it is being for a normal person to have a balance of at least 1200USD.

At least in the E.E.U.U in an afternoon or work shift you can get at least a good payment, but in Venezuela If you have a work shift you will win a month much less than it is done in 1 day of work in 1 shift, still So if you work 12 hours per day can be something advantageous, you could meet to do the month.

Regarding the population density, it may be much the one in e.e.u.u and this can be a problem, perhaps for that reason it is that the prices increase, there may be more demand for people in search of rent. I understand that in countries like Spain, rentals are also very expensive, between 200-400 euros, even so, considering that these countries enjoy a minimum salary above 200 USD is still more feasible than expected a salary of almost 4 USD as in Venezuela, unstable economies makes ways of living unsustainable but compared to stable economies countries tend to be normal as regards numbers in general.

The thing is... rental properties in prime areas are becoming a huge problem. Most people want to stay near to where they work and the inner city is probably the area where most people work. So it does not matter if suburbs are expanding... because those people still have to travel far distances to get to there work.

City planners should develop traveling alternatives that will make it easier for people to live further from their work place, but still easy to commute to work. (Then employees can rent or buy cheaper properties that are further from their work) 

Crypto currencies cannot solve this problem. 

This seems like a much bigger problem than Bitcoin could ever hope to solve and is not limited to the USA. You'll find a similar pattern around the world and it basically comes down to the consolidation of vast amounts of wealth in fewer and fewer hands. You'll find soccer players in England who are investing their millions into property portfolios with 500+ houses. When you put that many houses into the hands of one person and then replicate that investment with thousands of others, you are vastly shrinking the property market and making it much more vulnerable to pricing manipulation. People have to live somewhere and landlords keep choosing to line their own pockets while constantly expanding. There are so many factors at play, which change between countries, but if politicians really cared they would tax multi-home owners in a way that would stop it becoming a business and this could slow down the rising costs involved in renting or ownership.

But 1970 is a long time away, how can a young family these days ever afford their own house? The housing crisis in 2007/2008 was only a small dip on the average house prices. If you had money at that time you could have managed to buy a few bargains. However, since then the prices rose very high again. It is nearly impossible to buy an house these days with an average income. For example, if I would just buy an apartment right now with my salary and take out a loan for 75% of the value I would have to repay the loan for the next 35 years. This is insane, who knows what is going to happen to in 10 or 20 years, how can you go into debt for such long times?

This problem has been persisting even before the pandemic, 1970s is the right time to buy houses because they are the most stable time and less expensive economy back then but now that real estate skyrocketed in prices because of increase in population and business which made land more valuable and the 2008 housing crisis also contributed to the destitution of many people in USA, oversupply in real estate does not work the same as the basic supply and demand.

Renting and buying a house will change a lot in a few generations for sure. Older generations had the chance to buy any house they want, because they were doing something that wouldn't really cost them a lot, my father once bought a house 20 years ago for the price of my current salary, and I am not joking. Sure inflation plays a big role in house prices who can deny that, but it shouldn't be THIS much, one salary worth for a house 20 years ago, that's not crazy to think about. And at the end of the day today that house worths maybe 10 years of my salary, more like 8 or so but still quite a lot.

It means we should not be looking into these kinds of things from younger generation, because younger generation do not have that kind of money and we can't keep buying houses. This results with us renting, and the more we rent the less available houses for rent and that increases the price.

People living in dense cities are the reason why the household rates are increasing, while there is no option for the people because where there is earning opportunity available. So this os going to be a long term plan execution if government wants to build new cities and reduce the dense population on the existing cities.

It also depends on the gasoline prices. If the gasoline prices stay low, then people can afford to purchase or rent houses that are at a considerable distance from the city center. But that is not the case when the petroleum price goes up. And the oil prices have gone up by almost 60% during the last 12 months. Even here in India, the petrol/diesel prices are at historic highs. A lot of protests are going on and the central government is facing a lot of backlash.

Think Covid-19 disease influenced a lot on decision of many citizens to buy suburban housing by means of mortgage. Don’t think that crypto can somehow to help in building new houses and to lower prices on them. Scarce goods always inflate in price. Only oversupply of houses can help to decrease prices or, probably, the full end of covid-quarantine.

It is a highly cyclical market in most places in the world, with cycles in the range of 5 to 10 years of time depending on several factors. We must take into account that "Real State" or housing is not all created equal. On one side, you have the highly liquid markets of downtown NY, London, Singapore, Tokyo, Sydney, ... This cities are traditionally the subject of foreign and corporate investment. In London for example, the ridiculously long planning process extends the cycle whereas in NY it is simply about lack of buildable greenfield.

However, even the most imperfect markets eventually reach a valley and go up again, e.g. people start thinking that they would rated earn a bit less in other cities or places and have a better quality of life and lower rents than to pay the massive rents, or the prices are so high that eventually regulations are relaxed,... Remember that for every rent, there has to be someone willing to actually pay it and have the means to do so.

The more effective way I see how this will be solve is for the US to establish new areas/cities with cheap real estate and a whole new business district to come with it, this just gives people a chances to relocate and decongest the existing cities that have a high standard of living. This will just inject a healthy competition in a lot of the real estate markets forcing them to have lower their rent. Of course in order for them to do this the government should have a way to attract businesses to invest into the new areas offering them tax cuts and other incentives just to lure them on investing into that area.

I think there is a correlation between people buying their houses and rents being higher. Back in the day rent prices were lower, because there was more people renting so landlords would have a lot of homes they rent to and make a living from that, however there were some improvements on mortgages so right now it is easier to buy a house, and that means less people are renting and that means there are less money to be made from being a landlord and that is why the rent is higher.

It is supply and demand, if there is less demand that should mean the price should go down, but when the supply drains like it did thanks to mortgages that means people who like to rent would have to find places that exists less and less. It is definitely about economy not being good and salaries not increasing at the right level as well, minimum salary purchasing power dropped 70% and should have been 34 dollars if kept with the last 30 years, they are saying no towards 15 dollars, let alone consider even possibility of 34.