Where did all the housing go?
In: 7
There is little to no financial incentive to provide affordable housing by developers or property owners. I just sold my 8 unit apartment complex because it was unaffordable to continue operating. It was bought by a business that needed housing for their workers. As a non-profit generating concern it was cost effective for the buyer.
Utility, insurance, taxes, and maintenance costs were too high relative to the rents that could reasonably be charged for the apartments. On top of that, landlord and tenant legislation favours tenants and makes it very difficult for landlords to recoup costs in a rapidly changing inflationary economy. On average, over 15 years of operation, profits were less than 5% per year and operation in 2023 was forecast to be at a loss of 10 % or greater. This is in spite of having rental rates commensurate with the market.
I would never consider being a landlord again. Thousands of alternative investment options promise to provide better returns with fewer headaches and stress.
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