Why Do Rents Skyrocket?

Inflation. At the end of the day what goes into the rent charged is the cost of insurance (which has gone up), the cost of maintenance (which has gone up) the cost of property taxes (which has gone up) and other factors. When costs go up, the prices of things go up, and that includes rent. All higher costs are passed on. It's just the way it works. Just like everything else. It's like I keep saying about those who want to raise corporate taxes. It's just going to make things cost more and no matter how much is charged or taxed, the consumers pay every cent of the higher costs every single time.

The easiest answer is they go up because they can go up. It makes me so thankful to own a house. I just bought a new refrigerator, but that wasn’t half a month’s rent with the price AND delivery AND haul-away fees. That and the property taxes and the homeowners insurance have made this an expensive month — about $1,800 — but that’s a month’s rent. I don’t have to pay anything else for the next 11 months.

It’s a bad situation. I feel grateful that we don’t rent.

Rent is getting too high.

Rents are going up here too and a great many people are being forced to live on the streets. It's very sad but I don't know what the answer is.

There are two reasons- One landlords wants to make money when it is possible and before the shelf life of building is getting over. You can charge high for the first half of shelf-life and then it would have to come down a bit due to maintainence and all. Again , rental yield is often less compared to cost involved in constructing. So get profits when its possible and from whom its possible. Second reason is pressure from other landlords. In case you are giving significantly lesser than other landlords, there would be renewed focus on your apartments and perhaps people would belive it has other issues when there are none. So in short , its profit and peer pressure. Would tha rates go down , if there is a recession or pandemic naturally yes.

I can’t imagine living in California. Rent is going up enough here, and I live in Oklahoma, with a lower cost of living.

Yes it is very disappointing, In 2006 Berlin was very cheap to live in. Really low rent for big places. In the between time rent has gone up 3 times what it was , almost. They say it is the same rent for anyone. But everyone has a different rent to pay. There are alot of germans on the street. I have been in contact with them a few years back. Nice people. People like you and me. But Berlin is too full, not enough houses for the germans. Funny how everyone gets a home, but the people that are german have to wait. And live in tents. Why are the rents going up? Because the houses have been sold to companies. And as long as we keep paying, they will raise the rent. Canada is even more expensive. The Netherlands too. No matte where you go, companies have taken over. They make there own rules. My advice is, if you can, buy yourself a nice little appartment or house. Renting is not what it used to be. You must pay everything as if you owned the place. Unfortunately, I cannot buy a place. Maybe tomorrow I will win the lottery. Then I will buy me a nice little house in the country. (That of what is left of country). Dreams are nice , hahahaha!

There is not enough regulation in the housing industry.

Just glad for the situation I have now and no change in my present rent,

I would LOVE a $950 rent. I pay $1425

I read an article that private equity firms are buying up properties and pushing up the rent to maximise profits

Everything is getting expensive nowadays.

They raise the rents because they can and because they don't care about people struggling to pay the rent. Seniors are always at a risk of being homeless. Have a good weekend.