A study by Goldman Sachs confirmed last week what we all have know long ago: the rent is too damn high.
Goldman took a look at shelter – either mortgage or rent costs- inflation that has been increasing steadily over the past few years. The inflation for “shelter” is responsible for about 40% of the Consumer Price Index, which measures changes in what the consumers are spending their money on each month. Shelter spending has been increasing by about 3%.
“Just in case there was any doubt, your rent really is growing faster than your income”…”With rents this high, no one is smiling. Except, maybe the landlord”. No those jerks don’t smile, except when they jack your rent up or tell you they’re putting your house on the market.
The culprit responsible for these high rents? The lack of vacancies. The current rental vacancy for the past year has remained around 8.3%, lowest since the peak of 11.1% in 2009.
There’s an added layer of complexity here locally when we factor in vacant houses that are rented for grow operations, displacing people who actually would actually live there. Then factor in how much more landlords get for renting to growers. We’ve heard of situations where they’re get double even triple the normal high rents. Some are demanding a percentage. All of this screws the average renter. On top of that, by renting to growers, the landlord doesn’t have to worry about many of the usual maintenance costs for making the property look nice (there goes the neighborhood).
Luckily, renting to growers cost’s the landlord big money when the renters burn the house down or or gut the inside….or maybe not. It turns out that renters insurance usually helps cover many, if not all of those types of damages. So what’s to stop the landlord from making a ton of money renting to growers? Nothing much.
Never fear, at least in Eureka their might be a minimum wage increase to help with the high cost of housing. Unless, of course, the Brady Bunch and their City Funded Chamber of Commerce can get their wish and keep the minimum wage at the current low level.