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Moneywise

What increasing rent costs mean for the urban middle class

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  • Z South Jordan, UT
    April 16, 2014 12:20 p.m.

    As long as you do not own your dwelling, you are at the mercy of your landlord. Rent is cheaper over the short term, but always loses out over the long term in any market where demand is rising.

  • Hutterite American Fork, UT
    April 16, 2014 11:23 p.m.

    I guess you have to look at it a number of ways. Is your home an investment as well as a residence? Do you need flexibility instead of commitment? What type of life are you choosing? Marriage and family are a entirely your choice, and will in a large way determine your accommodation situation. The choices are available to everyone. If increasing rent costs push people into different situations or different locations, so be it.

  • dalefarr South Jordan, Utah
    April 17, 2014 11:44 a.m.

    Rent isn't cheaper in the short term. If you buy you get to deduct interest and property taxes for income tax purposes. If you rent, part of the rent goes to pay the Landlord's property taxes and finance costs.

  • RBB Sandy, UT
    April 19, 2014 2:05 p.m.

    Yes, building new properties will help the situation. It is basic economics. If there are more apartments, the demand vs. the supply falls and prices start coming down. Overbuild and apartment owners will be giving things away just to get renters.

    Granted, one or two buildings will not do much in a large city. However, if several new A properties go up, some of the tenants from the former A properties will move to the new A, the new A- properties will have less room to charge whatever they want. The former A- properties will also have to keep costs low or their tenants will move to the new A-. It trickles down to the C properties. Eventually, prices will start falling.

    Just look at office buildings in Salt Lake. In 2004-2007 landlords could dictate the terms even though there were several new buildings. When demand fell so did prices. Now that the vacancy rate is going down, prices are headed back up.