The rent is too damn high!

slum rentalsWe saw this story in the today’s Guardian and it really rang true for this area.

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 addindoor growed 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.

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10 thoughts on “The rent is too damn high!

  1. Oh yeah raising the minimum wage will really help combating the growers.

    You had the right idea pointing the finger at growers and why rents are high. You lost me with the Eureka scare wage act.

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    • Uh….maybe the author just wanted to point out that high rent and low wage is a bad mix. The single mom working at Walmart might be a little better off with an extra 60$ a week.

      Liked by 3 people

    • JP wrote, “ The single mom working at Walmart might be a little better off with an extra 60$ a week.

      Isn’t Walmart “Employee Owned”? I see that on the employees’ tags all the time.

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    • Really? Lets just look at 3 major landlords. Furtado, Strombeck, Kramer…They combined probably have over 4000 rentals conservatively. All of them, good friends with most of our local planning commissioners and have been known to spend some time together. Don’t you think there are conversations about how much the rents are in any given area for X number of rooms and X number of bathrooms? Search those three rental companies and see just how close all the rents are.

      Liked by 1 person

  2. I would like to see the cost details on “low income” apartments that cost $160,000 each to build with taxpayer funded grants and very low interest loans which then belong to the builder.

    Liked by 1 person

  3. What’s missing from the original article (not that I would expect Goldman Sucks to mention it), and this article, is all of the empty houses due to foreclosures. Read the Legal Notices section of the Times-Standard most days, and wonder about the fate of those people who bought into the American Dream now-turned nightmare..

    Read the Legal Notices in the various local papers and notice all of the personal belongings, people’s lives, being auctioned off because the economy’s so bad people can’t even afford to pay rent on storage units.

    Walk around Eureka, or have someone drive you around Eureka, and notice all of the empty buildings that used to contain businesses.

    The revolution won’t be televised, nor will the fact that this country is in far deeper trouble than the fake reality being beamed from that same corporate television. Likewise, local “newspapers” struggling to keep their doors open aren’t going to give you the straight scoop about our local economy when that would irritate their advertisers.

    BTW, it’s WinCo, not Wal-Mart, that’s “employee owned”.

    Liked by 2 people

  4. The family that owns the majority of Walmart has more wealth than the combined wealth of 40% of Americans. Fred is so clueless.

    Liked by 2 people

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