Quote:
Originally Posted by bcp
Can we all agree that market-rate (certainly impacted when city fees go up) is not greedy (an often abused term)...and anything less is voluntary donations?
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I agree totally. The market determines this organically.
Renters want to pay as little as possible, while landlords will try to get as much as possible. Nothing greedy about this from either end. The two parties come to an agreement somewhere in the middle.
When TUP made his comment the other week about rents "should be" higher, this is what I think he meant to say: "As a landlord, I, of course, would prefer rents to be higher. But, I would also prefer rents to be higher, because that would force more neighborhoods to revitalize, because of the Spillover Effect, as renters look for cheaper alternatives in nearby neighborhoods".
Having said this, I don't think that rents are currently under-priced here. In order for one to believe that rents need to go up, would indicate that person having some advance knowledge that there are huge numbers of renters moving here, that have high incomes. Or, that they know of some plan on the table to move 100,000 new residents to the City, all of whom are making $100,000 per year or more, on average. Something like that WOULD cause demand to go up faster than developers can deliver, and so yes, rents would go up. But I don't think something like that is happening...people are moving to the city to be here, while some people are leaving the South and West sides, but not enough people moving here to justify raising rental prices at this time. Although, yes, in some areas, if a landlord rehabs a unit, asks for more money, and finds a renter to pay that, then yes, that sets the market and it is justified.
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