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.
In Australia, even before covid, there had been a trend towards couples living in a house instead of sharehousing. This reduced the capacity of houses.
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.
Over 80,000 were purchased by black rock financial alone. Zillow has bought 10,000. They are altering supply and causing prices to skyrocket while taking available homes for families. They do this with straight cash offers that a normal person can’t compete with.
There are many things happening that make it appear as if we have fewer homes than what we used to
1) We’re getting more people
2) People tend to want to live closer together, i.e. move to the big cities
3) The ‘family unit’ has changed, and living alone has become more common, while larger families under the same roof has become less common
There are many things happening that make it appear as if we have fewer homes than what we used to
1) We’re getting more people
2) People tend to want to live closer together, i.e. move to the big cities
3) The ‘family unit’ has changed, and living alone has become more common, while larger families under the same roof has become less common
To add to the other answers there is still cheap housing around. It is unfortunately in places like remote countryside and small dying towns where no one wants to live.
To add to the other answers there is still cheap housing around. It is unfortunately in places like remote countryside and small dying towns where no one wants to live.
1. More people
2. Not enough houses
3. What houses are there, are seen as investments before homes
4. What new housing is built, isn’t for lower income people
Lots of reasons, these are just some of the big ones
1. More people
2. Not enough houses
3. What houses are there, are seen as investments before homes
4. What new housing is built, isn’t for lower income people
Lots of reasons, these are just some of the big ones
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