Rents Rising 3 Times as Fast as Official Inflation Figures Although the pandemic created some softness in the rental market last year, 2021 brought the fastest rent growth we have on record, and it is only a matter of time before rent inflation measured by the government catches up to the staggering prints observed by Apartment List. What is striking, is that in many individual cities across the country, rents have now surpassed the level where they would have been if rent growth had not been disrupted by the pandemic. And in markets like San Francisco and New York where “pandemic pricing” is still in effect, prices have turned a corner and are now rebounding. At the same time, booming markets like Boise continue to see prices climb. More broadly, rental inventory across the nation remains tight, and as vaccine distribution continues to gain momentum, we may be seeing the release of pent up demand from renters who had been delaying moves due to the pandemic. Whereas last year’s peak moving season was halted by the pandemic, this year’s seasonal spike appears to be making up for lost time. Surging rents is the missing link from both the CPI and PCE baskets - are back with a vengeance, and the result is that no matter which official inflation metric one uses, we are about to see some truly epic inflation numbers in the coming weeks. I expect this will accelerate the trend of moving away from big cities like a mofo. Rent was already stupid in a lot of major cities, I don't know why someone would put up with it if they don't have to. Without wages keeping up I don't see how this trend can continue . The rent is too damn high! Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Thank You. Back in 1938, you could buy a house for less than 4000$. And the average yearly salary was 1700$. The old rule was no to pay more than 2.5 or 3 times your salary for your house. That's when mortgage rate were 10%+. That America is long gone, and you'll never see it again. Of course rents are higher, the risk premium is higher. You can’t evict people like you used to. They can lie all they want. Inflation is going through the roof and is out of control. Rent, Food, Energy, Taxes, Medical Bills, College tuition, Water all skyrocketing and showing 15% inflation. But they are excluded from the government figures due to volatility. $7/gallon gasoline by late summer. $15/lb ground beef. Exploding auto, home, and appliance prices. Shortages of food and repair parts. And that's just the beginning. Wait until it gets bad. The fed needs to stop it even if it means a crash in stocks. They have killed everyone's savings. Rents are going to go up because the landlords are trying to recover loses. And don't forget the higher property taxes that get passed along to renters with increasing property values. Can't evict or foreclose on ANYONE still, as Biden just extended the moratorium one more month. You can bet they will extend it until elections 2022 - Democrat free stuff for all! Who the hell would go in the the rental business now? The homeowners is the patsy for everything. Now, in California, because of the fires, home insurers are doubling their insurance fees if you live near a tree or trees. But, seriously, if you live in a fire hazard zone which means hills and valleys and trees your insurance is soaring. The whole point of the eviction moratorium is to crush out all the mom and pop landlords, and when they go broke, they'll get sold for pennies on the dollar to gigantic corporations who will hire goon squads to evict all the non payers, and scumbag lawyers to tell all the media to keep their mouths shut about it. Intentionally generated rental and housing stock crisis via moratoriums to create the largest shelter shock ever in America. And that is just the way the federal reserve wants it because blackstone and blackrock own the homes,and pay the million dollar speaking fees to retired federal reserve board members. Landlords are raising rents to make up for losses from not being able to evict. It's always the same story: restricting the property rights of landlords is a boon to people who take advantage and live rent free, but honest people who pay their rent will end up paying more as a result. Always. The mechanism is no mystery: protection of bad, destructive, and deadbeat tenants raises the inherent risk of operating rental property, which means some owners will drop out of the market, leaving fewer units available for rent and raising the prices, which compensates for the higher risk for those who stay in the business. Not to mention that a growing segment of rental properties are occupied by non-paying tenants, who have no incentive to move on, leaving fewer units available for anyone who needs a new place and is willing to pay. Rents are going to trend higher as more landlords exit the market. Why would landlords exit the market? Because of government restrictions that make it insanely difficult to be a small-time landlord trying to earn a fair buck. The major players were able to weather the eviction moratoriums, Granma & Pappy not so much. Add rent control and leftist laws that favor leeching tenants over honest owners, and you can see why the rental market is a mess and will only get worse. The only thing that will alleviate rental prices is to have more supply on the market. That's not going to happen when you tax and regulate small landlords out of business. Nearly 6.4 million households owe an estimated $21.3 billion in rent debt, putting them at risk of losing their homes when the national eviction moratorium expires on Saturday. Biden administration issues targeted a new eviction moratorium. As the previous eviction moratorium expired on Saturday, sparking outcries from liberal politicians and consumer advocates. The new moratorium will be more targeted than the blanket prohibition that was in place previously, according to details released late Tuesday by the Centers for Disease Control and Prevention. It will apply to counties “experiencing substantial and high levels of community transmission levels” of the virus. This is absurd. People will remain unvaccinated in order to avoid eviction. If they get vaccinated, they can get jobs of which there are plenty now! Mitigating back rent owed is reasonable. Extending the moratorium is perpetuating this entire anti-vat issue and prolonging the pandemic. There are tenants who haven't paid ONE PENNY of rent since March 2020. That's 18 months. They've gotten the enhanced unemployment, stimulus checks, and some actually went back to work. It says they are at risk of losing their homes. No it is not their home; they do not own it. They are renting it from somebody that is still paying a mortgage on it. Pay your rent or get out. And paying the taxes, insurance, and repairs that the tenants need fixing. Not to mention that all those things are going up in price. I'd be angry too if I hadn't collected rent in over a year. what do these people do for one year living rent free? For many people, their first priority is to spend on things they want, then pay on their obligations if somebody squeezes them for it. Everything, and I do mean EVERYTHING, which is needed to supply rental property to the market, has gone up in price. Insurance has not only gone up but as the house values have gone up, I have to raise the coverage which costs even more. Property taxes have been notching up. But the real story has been the cost of plywood, lumber, shingles for roofs. Then, of course, there is the moratorium. And that one is awfully hard to quantify in terms of how much to raise your rent to compensate for it. And there's the question of will they continue extending it, for how long, will courts ever actually strike it down and stop it, etc.??? No idea about all that. Even if it goes away, the political momentum has been toward having another like it, etc. For all these reasons and more, I don't see rents doing anything but skyrocketing. Landlords are going to have to raise rents on their tenants of many years, and we're talking 10%+ on each of them. This isn't fun at all. This is miserable. Knowing now that the government can seize my property at will, and force me to subsidize a renter, I would want DOUBLE my old price and 1/4 up front (three months rent) as a deposit. I would also only rent leveraged properties and put each individual property in an llc and simply walk away and screw the bank if the government messes with me again. This is the ONLY way to do this now in Clown World and not get screwed. Double the rent. No question about it. Otherwise there is too much risk involved, you need to be effing NUTS to be a landlord post-constitution . Throwing away the constitution has consequences . It doesn't make any difference whatsoever which party is in power. Poor people are made to be reamed in the USA. A difference in logos is enough to convince you that you have a choice when you post your ballot but you are all doomed either way because the corporations will always have their way. Corporatocracy run by propagandists, lobbyists, and criminals of the highest order. We now know increasing debt is not a free lunch. It decreases future economic growth as the economy, over most of the past decade, continues to be mired in a low growth or no growth outcome. If the increases in borrowing continue, there's nothing that says we cannot be then mired in negative growth, as in a decade-long recession or worse. That would be a depression. This is the FED's America. The CDC's "free rent" mandate is a form of "price control". EVERY time government does price controls, it ends very very badly. You add the FED's backstopping of every crummy MBS, you have a very toxic mix. Last thing I will do is sign myself up for 30 years of wage-slavery on a mortgage Only to pay perpetually increasing property taxes forever. Property tax vs. income tax. Choose carefully. Property tax is due even if your income is $0. I'd rather pay an income tax and quit working earlier. Low expenses in retirement is key. Ideally you live in a state with no income tax while earning income and move to a state with low property tax when you are ready to retire. Obviously you gotta tweak things according to your life. Unfortunately our tax system is so fubar that folks have to make major life-altering decisions around taxes. But if the world leaders had their way, we'd all pay massive taxes no matter where we live. This is just showing that corporate America is about to own every one of you. They'll be your landlord and treat you as badly as they treat you while you go to work and slave away for nothing. America, Feudal Capitalist country, coming to a bomb near you. Slum Lords, Blackrock, Vanguard, and Fidelity, are raising the rents on the Rubes. Now do you see what our Federal government has in store for you, America?! YOU WILL OWN NOTHING and BE HAPPY! So they keep saying. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. 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