Idiocracy of GREED Rents Rising FASTER Than Incomes!
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- เผยแพร่เมื่อ 4 ก.ค. 2022
- Rental prices across the country are rising faster than you can watch this video! But in some areas in particular they are going so high, the rent prices are becoming detached from reality. When you see rent prices go up more than tenants wages are going up, this is a HUGE RED FLAG and is not sustainable.
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Homeowners Getting BOMBARDED By Desperate Real Estate Agents th-cam.com/video/PHvSZZZ7UbM/w-d-xo.html
it seemed like you were saying that the hope is for pre cough* levels but in many markets including california home prices were already overvalued in 2019 it was just an extra punch in 2020. in my market normal appreciation would be around 2017 prices but thats not the case its somewhere around 55-65% overpriced with a markup of 130% in 10 years
When the Biden administration screw the owners of rental properties. What did you think it what going to happen? Bingo owners came back with a vengeance. Specially when tenants that were working decided not to pay the landlord because Biden say so.
Howdy Michael. Curious what your thoughts are on how much of the rental increases are due to 2 years of eviction moratorium? Renters not making payments. My rent just went up $495/mo and that’s on top of last year’s 224/mo increase. If they sting me again next year rent will increase $980/mo. All 13 month leases. I’m a remote worker as well. Waiting for employers to figure out they could be paying based on cost of living….which would mean a decrease for most folks like me that work in a small town getting paid urban salaries. Trying to save for a house. 😅
@@tacotruffles I'm not really sure how much the moratoriums have influenced these increases. I'm sure it played a part, but as we can see its not just one issue. Its many issues combined that have created the problem, so unfortunately will probably take a combination of solutions to fix it.
As a landlord, I always kept rent low, I don't want people moving in and out and smashing up the walls. It's consistent for long term and no bs.
I hear you, and its less hassle for you having consistency. I feel the same way. Yes increases are necessary from time to time, but not like we have been seeing as of late.
I was just watching Southernprepper1 this morning and he mentioned a furniture store owner saying that his biggest sellers right now, is bedroom furniture including foldaway beds and bunk beds. He started asking customers about their purchases and they were telling him that had family members moving into their homes. I'm assuming that people can no longer afford the rent being charged so they have to move back home.
I would imagine that they are at the end of a burgeoning lease and see the writing on the wall. Hopefully, they are moving before they find themselves in a deep hole.
I believe it!
Interesting about bedroom furniture being the best seller for this furniture store. I’m wondering, though, didn’t these people moving in with family have their own bedroom furniture as renters?
That’s true. I’m moving back in with my mom next month once my lease ends. I’m tapping out of the rental market. I want to travel and not feel like I’m barely making it every month
Obviously the places are getting the rent that landlords are asking, otherwise they would t be raising gate rent.
Landlords should always treat good tenants well because you want to keep them! Don’t be greedy and squeeze them for more rent money unless you need it. Good tenants are hard to come by. Great video!
I totally agree and thats how I handle it as well!
The eviction moratorium has a lot to do with high rent prices. California just ended the moratorium on June 30, but Los Angeles has its own moratorium that doesn't end until June, 2023! Landlords still have to pay bills and property taxes. Many landlords had to sell their rental units to corporations which bought up a lot of properties and raised the rents.
I don't agree. Landlords should extract as high a rent as possible and if the tenants don't like it, they can go. Capitalism is ruthless and you can't show any compassion for losers.
Landlords making up for eviction moratorium losses and padding a reserve for future moratoriums. I don’t understand many people are upset, but many people took advantage of the moratoriums. Landlords do not buy a place and rent it out to be nice. They take a large risk in making money. If it becomes too much of a hassle to rent, rentals will become scarce, and went things become scarce, prices increase as demand becomes high. The people that took advantage of the rental moratoriums are the ones to blame, so don’t get mad at the landlords for trying to make up their losses.
tenants don't always pay and don't treat landlords well they can care less
You forgot to mention, that to qualify for any rent, you need to earn 3x your rent, so in order to rent a 2k apartment you need a yearly income of 72k minimum.
Yep you're right, I did forget to mention that. Yet another barrier to housing.
Was forced to move out in May 2022, Sacramento.
Went from $1300 rent to $2300, this is insanity. Im not shopping at all, only food and gas. Clothes last time purchased 2 years ago, no travel, no vacation, no going out for past year and a half. Homelessness in Sac rose by 100% 2021 to 2022.
I see more and more normal people on a streets.
This will blow up badly.
Move in with family and share the bills
Sorry to hear that.... it is terrible whats happening
@@greenearthblueskies8556 I'm one of those who doesn't have no family in United States, if i had someone i would, me myself and I. Also in a high tax bracket being taxed up the *ss.
This crap rolls downhill without wheels already. It's a freefall for this economy.
Not possible what you are claiming. Sacramento has rent control and cannot raise the rent more than 9% unless a tenant moves out. 9% of $1300 is $117. If you moved voluntarily, that's a different situation.
@@truther001 bull crap, i said i was forced to move, notice served by old landlord due to his relatives moving in, so this rent control up the ass, are you living in this world? Go and check for yourself, also I don't think you had read what I said in original message.
I just told my landlord I’m moving out at lease end and they listed the apartment for 40% higher than what I rented it for 1 year ago.
I'm not surprised
What city?
@@jackhubert Swampscott, MA,
The problem with this is that it’s affecting a huge percentage of people that made good life decisions and aren’t to blame for any of this, whereas 2009 was only caused by a small percentage of people that made bad financial decisions. This housing bubble isn’t one that can take a few years to unwind. People are literally just a few paychecks away from not having food and being homeless, most Americans don’t have the savings to weather a couple of years of high rent without being evicted, even if they keep their job. An extra $500 a month you don’t have can eat away quickly for most people who are already overworked and overstretched.
@@elmocotaco995 Lucky you that you could, but a lot of people have kids schools, local jobs, and disabled elderly parents and can’t just get up and move to another state. And tbh, there isn’t that much out there to move to, houses are already the cheapest here where I live and unless I live somewhere across the nation to the Dakotas where the cows are, it makes no sense.
Mine was raised by $600 this year alone in Miami.
It has been that way for over 50 years. It is nothing new
@@MBT372 what the hell 😳
The average American make $35k a year. You know its crazy when six figure earners are struggling?
Get rich quick usually ends up with get poor quick. That’ll happen when those tenants can no longer afford the rent and nothing comes in for months.
My thoughts entirely, or they get burnt on a desperate tenant who rents it out at the high rent, yet stops paying leading to an eviction, or leading to destruction of the property costing more money to repair, and finds out the person disappears and living off the grid. Thus can’t really sue for damages.
Yep, takes 8 month minimum to evict....
And I’ll be lmao 😂
Thats what I'm thinking too...
@@isabellesender 18 months in Los Angeles, but it will most likely take a lot longer than that now.
My Lakeland 2/2 went up $625 in the past two years. Most recent was $500. My apt complex has 352 units…all up $500 a month. That’s an ADDITIONAL $176,000.00 on top of what they already make…each month! That’s over 2.1 Million EXTRA PER YEAR! Unjustifiable IMO.
Been here since 2009. Usual increase 30-40$ a month. Never thought it could and would jump so much.
Now, I see three 2/2’s on their website that have not rented in over four months…🙏
These people will not do a lease longer than a year.
The REASON they justify these high rents…”WELL, WE FIGURE MOST PEOPLE HAVE MORE THAN ONE WAGE EARNER.”
Plus, there is a new trend called pad split or pod living, where these landlords turn a house into 12 renters in little screened/boxed off areas…to get outrageous rents.
THIS has to be OUTLAWED, or we will be adults living DORM LIFE INTO OUR GOLDEN YEARS.
Thanks for sharing that, and to me the perfect example of greed. Unjustifiable large increases, but you can afford to leave units empty for several months...🤔
@@MichaelBordenaro Exactly. I hope by the time my lease renews…they take that into account and not raise it to where they currently want it. They collude with all the other apartment complexes in determining Base Rents, or at least make note of it. Such a rip off. Not a good time to be hitting retirement age.
At some point the locals will be priced out of the area and there won't be enough people to work at the grocery stores, restaurants, etc. I've been on some Facebook groups in southwest Florida and this seems to already be the case. Rent just keeps going up but wage increases aren't keeping up.
Exactly!! Thanks for saying that. Makes total sense and is a real issue.
that is exactly what has been happening in the Melbourne, Fl area especially on the beach side.
Those people who can't afford to live there should learn to code. We can't listen to every sob story about people not being able to pay their bills.
@@Falconlibrary My point is if everyone who can afford to live in these areas either works remote or is retired what will happen to the local economy? If no one can afford to work at the local businesses, there are only two possible outcomes. You'll either have very few local businesses survive which will make the area less desirable or the cost of goods/services will increase so that people who actually work there can afford to live there. My guess would be the latter.
Michael make several good points. I believe the "rental prices will drop again..." when the STR market dies down (i.e. as more people all but quit, traveling) and concurrently, as people stop "remote, working." (In conjunction with the other points, Mike mentioned.) These "telecommuters" will then either end up, where they came from? Or relocate somewhere cheaper than Miami, or Austin, etc. (Which is increasingly by instead heading south of the border, and elsewhere for North Americans from above, the US/ Mexico borderline...) WHY would anyone pay "high rent" long term? (They're basically like: "snowbirds, on month to month plus, STR vacation.")
He also mentioned that around 30% were savvy enough to "sell" and wait for the "rebound," prior to buying again. (Smart...) This is what I've been telling people to DO for the last decade. (i.e. Since around 2012, after the last controlled demo, crash...) But next we are seeing inflation in places like Mexico, so DCers are already proposing "no second citizenship," nor 'denouncing' US citizenship. However I don't think they'll stop, the "Exodus..." (Even with that border wall, going up in Texas, etc.) You do NOT "get wealthy" holding properties through their (staged) "crashes," because this is HOW they TAKE your (paper) equity "savings..." on top of all the taxation, low wages and inflation!
I am a landlord in hot areas, and I did NOT increase my tenant's rents. I want to keep them. The GREEDY landlord's will lose their tenants, and eventually their investment when no one can pay their rents!
Thats exactly right Donna, thank you for sharing that! Also, I think smaller increases are reasonable and often necessary in todays environment, but to gouge someone is another story.
Another great video! These times should motivate people to live within their means, save, remove credit debt and find ways to increase income. This also means being uncomfortable for a little bit, but some can not make that sacrifice.
Thanks Latisha, I totally agree!
Well said!
I think people who can't pay their rent should be put in workhouses like they had in Victorian times. Scrooge was right and the Spirit of Christmas was wrong: “Have they no refuge or resource?” cried Scrooge. “Are there no prisons?” said the Spirit, turning on him for the last time with his own words. “Are there no workhouses?” Why should Scrooge, a winner, have to support a bunch of losers and be made to feel guilty about having been frugal and productive? Having stagnant wages for the last forty years in the US is NO excuse. Those people should've had the foresight to inherit money. Evict Tiny Tim and his loser parents!
@@Falconlibrary Excellent use of sarcasm to make a point about today’s inequality. 150+ years later and things are often still the same. Greed is part of many people’s natures. Although Scrooge did a turnabout. Maybe more of today’s Scrooge’s need to be visited in dreams like Ebenezer.
Some live beyond their means but many don't. Working 6 days a week by increasing income isn't always possible for everyone and personally I work 40 hours a week and have only 2 days off to get everything done that there is no time on weekdays. If I have to work 6 days a week then I don't see friends, am burnt out and feeling suicidal because what is the point of working 2 jobs and just scraping by still. You also need to find a part-time job to do on your day off which isn't always easy in a recession when it's usually working retail or minimum wage at a fast-food. You also get taxed more when you work 2 jobs. I would much rather go live in a room for rent before I work 2 jobs...already have enough with 1 full-time job. Decrease expenses is easier then increasing income.
Selling a detached property and renting sounds crazy to me. Having your own little piece of sovereign family dirt where nobody can mess with you is the ultimate form of life security in the modern world. To give that up once you are able to attain it sounds totally outrageous.
Yet this a common trend right now!
Greed is the biggest indicator this is popping!
You're right Mike B. It's pretty much all greed and get rich quick with alot of people these days.
Sad but true...
It's not get rich quick it's get rich for sure. It's a process. The wealth gap isn't based on. Incomes. It's based on assets.
Owning a home is my hedge against rent increasing. I bought just before the “2014 housing crash” everyone we telling me not to buy because the crash would cause cheaper homes…… never happed. People kept telling me unemployment is at 40% and you can’t get a job. Have never had any issue. Was told it is impossible to have a FICO over 800….. have had no issues with that. People just love to cry.
Having a 2 year lease won’t save you as landlords can cancel it any time they want.
Great comment
Yeah, I believe they are lying about lack of workers. Everywhere you go there are fewer and fewer employees. It's not because they can't find workers. It's because the companies don't want to hire more. Better for them if one employee does the jobs of three.
@@truther001 yet 6-7 million people are hired every month for years now.
Good one . I was perusing Zillow this morning and checked Ft Myers and Cary, NC. People still asking high amounts but biggest difference now is many people refusing to pay and homes sitting for as long as a month. You are correct concerning rentals though it will be unsustainable in the long term. Thx
I think these properties sitting longer will become the new "norm" real quick and yes these rent price increases are not sustainable.
Also we have a very fair rent, rent controlled in SF, small super nice mom and pop land lord, family has owned the building for generations. She seems to care that she likes her tenants. I would not want to deal w/ layers and layers of lawyers and bureaucracy. I can't imagine it's awesome.
Thats nice, glad to hear at least someone here has a wholesome landlord that cares. I know it is more common that people think but the current situation can make it look otherwise.
The idiocracy also stems with property tax increases on rental properties in states like Florida without caps unless it is homesteaded. Mom increased the rent on her rental by $200 per month on her tenant in Spring Hill Florida. She could increase the rent on a new tenant by $600.
No doubt, but in times like this a $200 increase is not only reasonable but necessary. Still a far cry from these $1000+ increases we are seeing in many cases.
@@MichaelBordenaro your video title caught my attention as a housing provider. Because rents have to go up to help off set increased property taxes, insurance and other associated costs and then I read your comment here, fair. Rents I raised July 2021 was between $15-$100, with only 2 of them being $100 because property taxes took a hike early last year and again this year. I haven't raised anyone's rent this year but I am expecting another big hike in property taxes next year when the massive school levy passes this fall. It was very close to passing a couple of months ago. Anyway, I thought I was more than fair with my tenants.
@@Monipenny1000 you see that’s the kind of thing that’s totally fair and reasonable. But of course not every landlord is handling it that way especially the big corporate ones. Thanks for being a great person and providing a valuable service a.k.a. housing to someone who needs it
@@MichaelBordenarosmall mom and pop landlords can't afford to operate like corporate landlords. Though WE could because we have 0 mortgages. Also like you already mentioned, tenants that have to deal with property managers working for corporate landlords don't get the advantage of dealing with small landlords who at least can be understanding, We also rather keep long term tenants who are good than to deal with vacancies and turnovers. Why would we price our good tenants out of our rentals to lose as much if not more than what the increase would be over the course of a year? We are all just like you.
Corporate "landlords" are the problem and I agree, they are greedy. The word greedy doesn't phase them because they are shareholders who benefit, not "landlords". The phrase "greedy landlord" is thrown at the small guys like us and not squarely placed on REIT who is made up of thousands if not tens of thousands of regular everyday people who invest in corporate REIT stocks, many of them who are renters. They did this to themselves. I won't take the blame for any number of reasons that caused rents to skyrocket. Some of the blame is on the Governmet too.
Making the non coastal landowners subsidize the insurance costs of coastal homeowners is making it worse. Also all the insurance companies leaving with roof insurance fraud and costs soaring
I can't imagine paying these rental prices out there today. A friend of mine is paying $2700 a month in PBI for a 2 bedroom on the third floor.
remote issue ? More like greed.
New to the channel, already a fan. All the best from London, England.
Awesome, thanks Edward, welcome!!
Honestly don't understand how the people around me can afford rental right now...
Its getting nuts!
Hey Mike, great video. I think more and more we are evolving into a duel income world. Of course one person making $36K / year will struggle to pay rent on a $2K / mo apartment, but what if you had two $36K / year incomes paying the $2K / mo rent - it would be easy for them. Everyone wants to live alone I get it but its getting tougher and tougher as everything keeps going up in price. We are evolving to more of a European method - family lives with family and they help each other out.
I love this idea. I’ve been telling my kids with families it may come one day where we all have to put our incomes together & live comfortably under one roof.
You’ll need more than 3 36k/year to be able to pay 2k/month rent, unless you don’t need car, gas, insurance and strictly just work and walking home or everywhere
Yes. I’m happily debt free and stress free. As a family of retirees, to save money in these trying times we consolidated. I moved from my former residence(rented). My sister, her husband and their son(15 years old) opened their home for me(my sister’s brilliant idea). I’m renting a room and contributing money for household needs: groceries. A win, win for all of us. We’re helping each other. I/we are happily living comfortably having the cash to buy what we need when we need it. We’re so grateful for all our blessings. Retirement is good. Be safe and God bless.
@@randyho8315 we all own homes.
Nobody seems to appreciate what the plummeting marriage rate has done to the housing market. Almost half of the ironically named "single family" homes on my block are occupied by actually single people like myself. More than half of the people who work in my office live alone.
I think we are in a Rent BUBBLE that is going to burst due to affordability. Current inflation and the hight cost of living are a perfect recipe for evictions in coming months. My landlord increased our rent here in Miami/Doral area 40%. From $3,200 to $4,500.
Wtf 😳
I think affordability for rent is at its limit and really cannot go beyond this until wages pick up significantly. That is a huge increase you have there!
@@MichaelBordenaro I don't see wages going up anytime soon but I do see people struggling to make ends meet, especially with the amount of debt, inflation and potential layoffs.
Remote work salaries are localized in the big companies at least. But they still manage to pay more because of the synergies they receive through hiring and employing remote workers.
Dude I have been with your channel from the beginning or close to it. I am enjoying your walking through the neighborhood and talking about all things real estate.
Thank you Gary for being with me for a while!
We love your videos , thank you 🙏
Thank you for watching them!!
I sold my home in March in order to pull out my equity. I found a rental, tried to lock in a two year lease and was told the rent will still increase by 80 to 100.00 when the second term starts!! Progress Residential. I am doing my best to keep watch on the market to buy again. This greed is getting out of hand.
I would say your lucky! that is a small increase compared to what many others are facing.
Attention Landlords:
Keep raising rents... the only ones that will be left living in your rental rent-free will be the bugs and rodents 🐀 😂
Just wait, it is "never different this time." I can remember renting in 2010 and the complex I was in steadily went from middle-class to low end, Section 8 housing, IMO b/c apartments sat empty for 1 to 4 months and sometimes 3 to 8 units at a time in a 36-unit complex. The LL let the property GO, its a dump now. Feel for the people that live there now, it's trashed and they're paying (if they are) taxpayers r paying through the nose for rents there. In MT Sec.8 pays 75% so 5 ppl rammed into 2/br for $250/month rent that is a SLUM.
I love it, thank you for saying this!
Uber is more convenient than calling or finding a cab. An AirB&B has room for my whole family, a kitchen, and a yard for my dog. So I am willing to pay more for convenience and amenities that matter to me.
Me too I’m in Texas my rent was 1700 and now I have to make a decision by Tuesday to renew lease for 1920 with nothing included which means I will be paying 2046 every month off 1 income being a single mom.
Just make sure you have looked around before deciding to make sure renewing is the best option. Remember, moving itself costs money as well.
My friend is an appraiser and he said last year banks started asking for drive-by appraisals on properties not in any trouble. The banks saw this coming and it’s greed.
There is no way that should even be allowed. Criminal if you ask me.
Greed? When weren't people greedy?
Love your vids! Straight to the point and only facts. Keep up the great work.
Thank you Oscar!
Really powerful video Michael I apricate all your hard work...
Thanks Jermon!
Why aren’t new apartments being built to keep up with the demand and to lower rental costs? Landlords can’t just unreasonably raise rents if there is competition. I think there is a more complete explanation than just greedy landlords.
There is new multi family housing being built in many areas that is supposed to come to market over the next year. That should help, but greed is a factor when you see rent prices that double over night.
Correct.
Supply and demand is the simple fact. Wealthy folk being chased out of northern democratic cities with high crime and high taxes.
Thank you for this video! I've been saying what's happening with rents especially in S. Florida has a lot to do with pure greed!
You're welcome, I totally agree!
This is a really great video, commentary as well informative.
Thank you!
New subscriber. Thanks for the up-to-the-minute content on the real estate market. You’ve given me a ray of hope that I can still be a homeowner one day in these crazy times.
Welcome aboard! I am really glad to hear that you can still get some hope from my content Chris!
Michael, I love that you provide links to the articles you reference.
Great video. Than you.
I meant Thank you.
I can’t spell!
Yes of course! Have to give credit and some grounds for what I'm talking about when I'm covering this much information at once
Good one. Your view from the street is so refreshing compared to the people living in thier bubbles and clueless of what is going on. I agree 100%, this is unsustainable.
Thank you Bob! Its been a nice change to do these type of videos again 👌
Wow, a real estate agent who tells the truth. I saw a realtor in Reno say last month that average home prices will rise to 900k. Who will buy these homes? The average salary certainly does not support that. They are currently 615k, and headed down.
Haha thank you! I hate liars
AirBnB are taxed three times now where i live. Same as the hotels. Further towns have been restricting what properties can be short term rentals.
I think we will see a lot more of that to come
I live in Flagstaff, AZ & the REALTORS here are the GREEDIEST in the WORLD. They say they escalate the prices "Because they can". I'm paying $2300 a month. & I live in a very MODEST 'home depot' condo. My LL wants to raise it to 3K a month; but b/c I've been here 7 years & NEVER been Late ONCE; he's giving me a little break for awhile. Therefore: as SOON as I can find something REASONABLE: I'm OUT of here! Now the crash is in action; let him find someone to pay him 3K a month. He probably will. It's CRAZY here. My LL started a Homeowners club to keep everyone charging higher prices. CONTROL & MANIPULATION. WHEN will people come to their senses & start CARING about PEOPLE?? I certainly don't know.
Very sad to hear that, although at least he is giving you a chance to find somewhere else before jacking up the rent.
I recently started watching this channel and I like the fact that you call it the way it is. If I were a renter and had not purchased my place just before the pandemic started to take off, I would be forced to work two jobs. My old apartment went from 1,000 to 1700 in 2 years.
I know people with kids who have moved back home. And rent never drops. Have had offers to buy my place but will not sell until I have a new place with keys in my hand. I feel so badly for renters.
Thank you Keri! It is a real tough spot to be a renter right now, especially if you need to move.
I really like your content now; it’s the wisdom that I like; been watching u for a few yrs; retired and no mortgage (house paid for) now living in AZ, but I still enjoy hearing ur knowledge & wisdom; people need to take note of ur advice; before I retired I made sure I was ready and prepared not for the good days but the bad days! prepare prepare prepare!!!!
Awesome! Thank you James!
Great points always good Thank you 😊
Rents rise/fall on supply and demand. What about all those people who could pay rent, but, didn’t because they knew they would not be kicked out. Property owners were forced to sell to institutional buyers to avoid foreclosures. Love your channel. Thanks for your point of view.
Yes they do which I guess why they are naming remote work being a culprit, as it can artificially increase demand in any given area. I made a video a long time ago about these eviction moratoriums, of course I was against them but that wasnt right either.
I do appreciate your videos, thank you so very much.
Thank you Tonie!
My whole town became drug dealers and prostitutes so they can afford to pay atlanta prices in the middle of nowhere... now I know why the book says don't cause your brother to sin....
Was evicted in December 2021 with a baby due in February cause my rent increased by $200. Now I'm homeless and my family had to move with their aunt in Atlanta without me. Greed has destroyed the average man especially black families. And these companies don't have decent rent rates, they're all "luxury homes" that seems unaffordable.
Sorry to hear that 😔
Renters should unite and create a national union. Start the great "un paying" and just stop paying these landlords to slobber in a wheel chair on a beach in Florida with a margarita.
Rents are going to crash in Dallas. I paid $2k for a one bedroom unfortunately that’s market rate right now. It’s even higher now. Two bedroom going for $2400+
Eviction crisis looming
Also work from home but salary is adjusted for COL of local market.
What? I paid that much in Beverly Hills!
@@Falconlibrary Yeah it’s crazy. I’m also in a suburb which is insane.
We have been receiving notices in the mail saying they would pay big cash for our house. “No thanks!” Happy to start to see some of these rents/house prices stagnate, even if it’s just a little bit.
Same for me. It appears we are at least at the limit of how how things can go for now.
Thanks again for your video. The area I am pooling to move is too LBS and Pompano Beach area. But the prices are extremely high. Hopefully the market softens where I can buy a place like I use to have back in 2009 where condos were selling for around USD300/ sq. ft. not these astronomical prices we see now. And you are so right about the high end hotel chains management of new condos on the beach. I can only imagine the HOA on these places.
Thanks for watching it Ira! I think we'll see prices come down in those areas a little bit but not sure it will be on magnitude with a crash, just due to desirability. We'll see soon enough. And yes these places have HOA fees into the several thousands per month
Incredible video! You nailed it.
Thanks a ton!
So, what happens like in 2008 no one could afford their houses, so you had all these people now renting and the rents sky rocketed. If you're a renter it's more often because you can't afford to buy a house, so it's really hard. I also watched commercial rents went up to, so my popular shopping street with little busines often things people might not be able to afford because you don't have any extra income. They tripled the rent when those leases were up, the business went out that was an anchor for the street, so the whole neighborhood went down while rents went up. Again great video
Exactly the more people that rent, the more prices go up. But at some point there is a tipping point, like the commercial situation you stated. It just cant go up indefinitely.
All who milked the eviction moratorium and bought fancy stuff while never paying rent for months are fresh on the mind of many landlords. And when they apply to rent all the lanlords are doing background searches. If you work and your employer has not given any raises? And you aren't demanding a raise?
My tenant bought a 90K BMW SUV the same month she stopped paying rent. She was a public employee who never lost a dime of salary during the pandemic. She finally moved out 18 months later, owing me nearly 20K in back rent, which I will never see. I was forced to sell the property.
@@davidduaneh sue her
@David Henderson - Just shameful behavior on her part. Hopefully, Karma will catch up to her.
You're right, landlords are the real victims here. Those deadbeats should be locked up in a debtor's prison. We never should have abolished them. They can work off their debt to their landlords at a reasonable rate of interest, like 40% (after paying for the expense of their incarceration, of course). Lock the whole family up and wring every red cent out of them. You can bet the other tenants will pay when they see people being thrown into a debtor's prison for 10-15 years.
I use to move people like 7 years ago in San Diego where they were paying 10-15k a month in rent!! I can only imagine now! But it’s more about the lifestyle then it is about the home.
Thanks Michael.
Thank you!
Michael, my markets are AZ, FL, GA, CA and TX. In the DFW area many houses are snickered at 40% above what they were sold for or listed for in 2019, Arizona is the same, coincidently these are the two markets where institutional investors sucjed up over 30% of properties from 2020 to 2021. Renta in these areas have also increased 15% or more. Many homes are now showing $40,000+ reductions but it is still not enough.
Thanks for sharing what you are seeing in these areas. I am of the mindset that any price cuts are better than none. You're right its not enough, but a start.
Thank you Michael 🥰 I hope the politicians are hearing and plan to do something about the renters problems,otherwise it will affect the economy at some point. And that won’t be a good thing 🤨
Housing in general is in trouble right now, for new buyers and renters. Something needs to change.
A friend of the family owns a few rental properties and has raised rents considerably the past 4 years. I asked him what he's gonna do when thing go back to normal. He thinks things will stay like this forever. Almost forgot to mention he lost 12 rental properties in 2009
I recently got a survey in the mail asking me about information on my property and that they were doing a study on the surrounding properties in the area. It even came with a dollar, and I could either complete it by mail or online. When I typed the link the survey came with in Google, I couldn't find the survey. After watching your last video, I decided to forget the survey and just kept the dollar. I pray the market gets better soon. Can't stand my current neighborhood. I tried to go for a walk and a group of black guys were sitting in the middle of the sidewalk even the end of the crosswalk pushing me out into the street. I walked around them then asked nicely if they won't block the sidewalk. It's not safe. Sidewalks are made to keep walkers off the street. It's not a siderest. I also made it clear that I was aware I am not law enforcement. I was so scared in saying anything too and I know everyone is hurting, however; being ignorant and rude like that doesn't help anything. It hasn't been the first time either that I've come across this situation. The 4th of July people's firework parties were shaking my tiny house worse than Florida thunderstorms do. I haven't even been in this neighborhood a year and feel like I've been here forever with the amount of fear and anxiety the surrounding neighbors have created.... it's nuts. I am so ready to try another area of Florida.
Yes you have to be careful with things like that! Sending you money in the mail is probably another tactic to make it seem legit. And they want your data. Sorry to hear about your neighbors, doesn't sound good. Hope you can move!
I am so beyond pissed at this whole rental situation. My landlord raised my rent this year 500$ a month. After raising it 150$ a month last year. I emailed Governor DeSantis Rick Scott and Marco Rubio. Not even an auto reply email. This will only get fixed with government intervention. It HAS to happen. This can’t go on folks.
Also USAA said on Linked In employees have 60 days to get back to the office. Their employees are crying “Ive moved” and etc. well then find a new a job like Elon Musk told Tesla employees.
Sorry to hear that, those are really big increases in just one year! I'm sure more of these companies will start doing the same, that may start leveling the playing field again as more of these people have to go back to the office.
@@MichaelBordenaro Mike I am not getting something here. What does working from home have to do with rental price?
@@xyz987123abc Using FL as an example, rentals were very cheap in most areas of FL, pre pandemic. But, bc so many companies went remote, people from very expensive markets, CA, NY etc, were able to move here and keep their salary from those areas, which are much higher than FL. And as more and more come, the demand goes up, and inventory goes down. What happens next? The person making CA/NY $$ can easily just pay more and overbid, similar to buying a house, and get the rental, pricing out someone making a local wage.
There will have to be intervention eventually. High rents mean less discretionary spending for consumers for the broader economy.
The rental money does not circulate to the economy at all from the large corporate landlords.
Oh yeah, it will all have a ripple effect at some point down the road.
Michael as someone who works in corporate I can tell you from personal experience that remote is her to stay permanently, employers are actually using it as a competitive advantage to recruit people away from other companies. Just look at the job postings on linkedin.
Lots of entitled people.
@@jbar_85 working remote is not entitlement 😂
I'm not saying it isn't but we are seeing some companies reverse their remote policies.
@@MichaelBordenaro Totally agree, more are definitely going back to the office. Just saying the remote thing will still be around for good.
@@doubleoseven273 Maybe the zoom jobs can be outsourced to another country?
I have tenants in my homes ..one or 2 are my first tenants when I bought my first homes. In 10 years..I even sold one of my homes to a now former tenant..I financed it..2 a nice couple who took care of the home they rented from me..I'm what they call a family owned landlord..I have a full time maintenance man ..who go,s to each home every 3 months to change out air filters in hvac s..make shure lawns are cut no code violations on my property s..basically make shure there's no issues ..make ready homes for new tenants..I'm a good landlord, but today lots of folks can't afford to rent a home..near tampa..witch is so sad..right now I do see a lot of homes for sale.. things are starting to dry up in my eyes..with high interest rates rising ..some new byers will be underwater vary soon ..who financed there homes..byer beware..do your homework befor you bye ..insurance costs in fl. Going through the roof if u financed your homes..good luck. Great video
It’s out of control either landlords are charging too much or employers aren’t paying enough, or both idk which. But what I can tell you is I am having a heck of a time saving up a down payment.
I don't claim to have all the answers, but I have no problem bringing these issues to attention.
It’s both.
Good video,thanks
Thanks for watching John!
In the words of the late, great Texas oil wildcatter, T. Boone Pickens, "The answer to high prices is... higher prices!"...
I cant afford school clothes for my kids. I work 60 hours a week. I'm ready to revolt.
With regards to remote work. I live in Boston and I am required to be in commuting distance of one of our offices. Would love to see the numbers on how many ppl have uprooted their lives and moved from California, Boston, NYC to Florida and all of these other cheaper states/cities that were mentioned.
I wonder how many other companies will start implementing similar policies.
The big issue many of us are facing is we can’t even move to a new rental cuz rents has skyrocketed and they want 3x ur income. My current house asked me to show I make 9,500 a month! I definitely don’t make that much so I had to ask family to help me rent. Now I’m stuck here cuz moving to a new smaller place a year later is the same price!
Yes thanks for bringing that up, its something I forgot to mention in the video. On top of these price increases, landlords want to see you make 3X the monthly rent in income
@@MichaelBordenaro That has been my policy since I started requiring proof of income many years ago. It has never been a problem finding tenants who could afford my rents, but I am in NE Ohio that hasn't seen an explosion in rent hikes like other area's. The big problem is finding responsible renters who don't have a criminal or eviction background or positive rental history.
Yep..the hotels call it Residences.
I would also say hotel rates are absolutely insane. Hotel rooms that I used to sell for $350..are now like $899. The $899 rooms are $2k. It's absolutely ridiculous and I have no idea how people are affording this. I just shake my head in disbelief.
I have no idea how anyone is affording it either. Even regular travel like coach airline seats and regular hotel rooms are quite a bit more expensive than they were a year ago! My guess...people will start running out of money.
@@MichaelBordenaro I agree. Right now it is the "revenge travel." As you know..Florida got hit first because it was one of the few states that stayed open and was warm with lots of things to do. The rates are ridiculous. I also think you touched on this in 1 of your videos..on how rates are going up..but pay is not. With this logic..yes people will indeed run out of money. It's slowly getting there now,but it's not as noticeable at 1st. Thank you for continuing to be real and help your viewers with whatever knowledge you can provide us. Thank you!
I had a tenant call me greedy once.
Rent is high because the new home owners buy expensive homes. so to rent it out they want theirmortgage paid out.
Thats just one of many reasons
Landlords don’t set rent prices…the market does. In the temporary short run, landlords may get to overprice the marketplace. As economic realities take over, rent prices will revert back to the mean.
Yes of course, I get that. But the landlord is setting the price when rent was $1500 yesterday and now its $2500 today. Just bc someone else is willing to pay that, doesnt mean you should uproot a good tenant who can't afford that much but can afford a smaller increase. This is whats happening, and its wrong.
Sadly, we never talk about the most greedy stakeholders of all. Who makes the most money from a gallon of gas? You guessed it. Government! Great videos sir.
This is the perfect title for this episode!!!!!
That's why I got enough of renting, they raised my rent 450 usd for a S++++ Studio with no view nor anything, just decent location, so I'm planning on buying in the upcoming months since prices are decreasing a lot, so it will be way worthy than keep giving my money for nothing to these thieves. , By the way, is that north hollywood? It really reminds me that place. Thanks for the video
Good plan! Keep saving and watch the prices and the market for a good deal👌 This is Miami Beach
My rent is going to increased by $300(!!!!) Starting November🤯 time to look for 2-3 jobs smh they don’t even care we have children
The crazy thing is that could be considered a "reasonable" increase right now compared to whats happening to others who are getting $1000/mo or more increases.
Your 36k/yr frugal tenant I should hope also budget for savings, to eventually remove themselves from this monthly torture of a thousand cuts.
I say good luck to anyone who can save any $$ on such a slim budget and high rent.
I agree my home that I’m renting is in foreclosure and trying to find a new rental here in Hawaii is over over priced it’s unaffordable I fear I will be homeless with my service pets
Yes it is crazy trying to find any sort of good deal on a rental right now. Wishing you luck!
The corporations record profits never trickle down even when production/out put increases!!!!….for every $1,000 you make a company or corporation they pay you $0.50-$2.00…they call that “leverage”!
Jacksonville Florida is crazy high in the good areas. some areas home prices have doubled in 18 months, and rents up 50%. Pretty much everywhere east to the river.
I'm sure...its crazy!
Our rent in Phoenix has increased 50% in 4 years. I kid you not.... Wages, not so much
Wow!
It's not greed. It's taxes. The government sets the price of rent more than the landlord does. When a property is used as a rental, there are no tax protections available like a homestead exemption. Therefore, when property values rise, taxes rise along with them. When the government overspends on war, welfare, corruption, etc, inflation increases, property values rise, and taxes rise as well. Government is the culprit from any angle. They created the inflation, they set the taxes, they force minimums and maximums of rent, they decide who lives in what property and for how long, and they even take properties by force when it suits them. Same with price gouging. Only the government can price gouge because only the government can force you to buy something priced higher than the value you place on it. The only thing you should wish from government is for it to leave you and everyone else alone.
I'll give you that one! These guys are the source of all these issues we're having right now. But of course there will always be bad actors on both sides, landlord and tenant.
That’s what I’m wondering. Who do they think will rent from them if people can’t afford the rent. Doesn’t make sense. Pure greed
Its grab it now while its hot and then lower later. Seems to be the current scenario.
In 2011 when I moved to swfl, many Corp owned rentals still wanted too much for rent both residential and commercial. They stayed empty and didn't care to negotiate. I imagine they'll do the same. A new complex in the center of Bonita Springs has apartments and retail space. Built right before covid and has been empty except a few apartments. I inquired about retail space but the price was ridiculous. I don't understand . Are they just writing it off year after year?
I wish I could understand it. As a landlord I would rather have 100% occupancy at a lower rate than 70% at a higher one.
I am a local in WPB, FL and my greedy landlord just raised my rent 30%
Ouch! that is a big increase
I'm not sure I'd try to time the marke by selling now and renting unless I wanted to relocate. One year's rent could total $45k reducing hoped for gains on a lower priced home. I think the market is going to go lower but how much who knows. It will take time though and I could give up a lot of rent in that time. To me the best strategy is to sell and move to a lower cost market.
As for the rentals. I am the mom and pop you speak of. I haven't raised rents on anything in four years. I will have to though as I still have capital costs. Two places will need new HVAC units costing about $12k per unit. When you only clear $300 per month on each unit you can do the math. Not getting rich. I had to replace a sewer line last year that cost $5500. My insurance costs are up about $200 a year on each place so not too bad there. Taxes aren't too bad either as I don't charge enough rent so I get a break from the assesor on that. I just want people to know that not all landlords are greedy rich people. I will have a paid for home one day but I am not rolling in money month to month.
Thanks for saying that! I don't think all landlords are greedy, but these big institutional ones are giving a bad name for everyone. As for timing the market, thats what most people that I have read about are doing. Taking big profits on the sale and moving somewhere much less expensive hoping to re-enter later.
I can see a large number of renters facing eviction (from the end of the moratorium) or unable to afford their increased rent, and having to share a rental. Either way vacancy rates INCREASE for those certain locations. These are also people who will not be able to buy because of limited income or the inability to qualify for a home loan. It's not a zero sum game (rental vs. home purchase).
I see that happening too
Is it greed or do you need the rent to pay the mortgage
I would say right now its both
Ppl aren't dumb. You're either going to pay the seller his or her higher price, the banks their higher rates or the landlord's higher rent
there is an apartment for rent in Manhattan, one bedroom, and the line of people wanting that apartment went down 3 flights of stairs, out the door, and around the block. Rents are high because demand is out of sight for apartments.
I saw that, insane!
1bed/bath in ghetto Apt. Complex in orlando is $1700. Working to death just to have a roof and food. FJB. I won't convert my short term to long term because evicting is too much work and emotionally draining. 3months max.
There aren’t too many year round rentals in my area, Cape Cod MA, mostly seasonal and very expensive. I’ve heard that there are rooms for rent rather than an entire apartment or house. I saw a house being shared by several renters, more than five people. do you think that will be a trend in the future?
Not to worry the homeless are coming to a neighborhood near you
This could become more and more normal if things continue like this
Probably!
I am seeing posts in Northern Florida where we live of people renting a room in their house or condo for close to 1k a month. When we rented here eight years ago the rent on a 3/2 single family in a nice HOA neighborhood was $1,350. Rent now on a similar house is over $2,500. Our son in his early 20’s with a decent job in IT is moving back home to save money as he is tired of paying high rent with multiple roommates. Hopefully prices settle down and so grateful we purchased a home when we did!