If rent is a major part of the CPI and the Fed uses the CPI as a measurement of inflation and the Fed is raising rates to battle inflation, BUT, rising rates makes it harder to afford a mortgage. If it's more expensive to buy a house, doesn't that mean more people are forced to rent, driving up the costs of rent.
Thanos was the hero
Correct, correct, yep and yep. Quite a frigging pickle, eh?Originally Posted by boneil
In times past, commercial interests didn't own the market.
From new construction to rentals, it's mostly the Big Boys.
They'll just sit on it before lowering prices, it's a hot mess.
Thanos was the hero
We're seeing single wide trailers renting for +$2,000/month here.
Entire subdivisions fully owned/managed as private equity rentals.
And now we have hurricane zones with +$10k rent for 1,800SF.
I think the idea is that housing prices will start falling to compensate for higher rates. As home prices decline then it may be more attractive to buy rather than rent which may force rents down. I think that is how it works in theory. Also don't the use Owner Equivalent Rents where they survey homeowners about what they think they could rent their house for? If the home prices start falling I would think that the Owner Equivalent Rent surveys would be a bit more pessimistic. I can't speak for other parts of the country but there have been a ton of apartments built in the last 2 years in South Florida. When you add in single family homes that are also being rented then I think it is possible we may have surplus rental units at some point. It is all as clear as mud .
Y'all have great validity to your various approaches, which it make me wonder way is it that people like us that live in the reality created by those in charge seem to have better understanding of how they are screwing things up, especially for those whom they say they are trying to help.
BTW, I love Nitro's closing sentence, "It is all as clear as mud."
They actually are very smart people performing very stupidly. They went into a field that is always very close to the money. People that work in banks are regulated very closely, the people you speak of write the regulations, but don’t follow them.Y'all have great validity to your various approaches, which it make me wonder way is it that people like us that live in the reality created by those in charge seem to have better understanding of how they are screwing things up, especially for those whom they say they are trying to help.
BTW, I love Nitro's closing sentence, "It is all as clear as mud."
[QUOTE=Bassin08;12714874]
They actually are very smart people performing very stupidly- Wouldn't you say that's an oxymoron?
the people you speak of write the regulations, but don’t follow them.- Thank you for confirming the hypocrisy of what is currently going on.
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