Nuplex t1_j9gszyg wrote
Reply to comment by sutisuc in Just got our lease renewal numbers. For a 12 month lease renewal, our rent will increase over 10%. I don't see how this is sustainable long term. by chazthetic
How many times does it need to be said that building housing reduces the rate at which prices increase. It does not guarantee lower prices. Without new housing rent would just shoot up even faster.
A great analogy I heard: Saying building more housing doesn't help is like free-falling from an airplane and complaining the parachute hasn't completely stopped you mid-air.
Miringanes t1_j9gybt3 wrote
Try telling this to r/rebubble…
According to them, there is so much housing in this country that a crash is going to happen any day now…
Nuplex t1_j9h1s1y wrote
I guess they are technically correct, there is plenty of housing in the country.... if you just add it all together irrelevant of location and quality. Housing crisis is specifically because there isn't enough housing where the jobs are and where people generally want to live thats a reasonable commuting distance.
Also the day people realize that housing cannot sustainably appreciate forever (for numerous reasons) as an asset there probably will be an enormous crash and cultural shift of housing as an investment to housing as a need (see: Japan). We are nowhere close to that yet sadly. Probably take another 20 or so years.
GoHuskies1984 t1_j9hi5b2 wrote
Not trying to fight but anyone buying expensive property in hot neighborhoods already knows not to count on huge appreciation.
People buy in popular neighborhoods because they want to live there + build equity while doing so.
A collapse is not happening unless there are major external factors.
Miringanes t1_j9hmm35 wrote
Unless you’re levered to the tits… but yes, my wife and I bought in a pretty hot area and there will be some appreciation, but not like it has been. We bought where we did because of the charming housing stock and gas street lamps, commute time to Manhattan, and like minded people living in the town.
Jctexan t1_j9heexq wrote
This is my understanding based, too, especially regarding high-rise buildings. It can drive the overall values of an area up, while simultaneously helping to keep surrounding rents low by adding more supply. So there’s some give and take.
This is an interesting watch:
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