The landlord had told them he wanted to raise the rent to $3,500 and when they complained he decided to raise it to $9,500.

“We know that our building is not rent controlled and this was something we were always worried about happening and there is no way we can afford $9,500 per month," Yumna Farooq said.

  • uis@lemmy.world
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    1 year ago

    They are ready to pay those prices because their tenants are ready to pay the prices they, in turn, offer.

    The only reason their tennats are “ready” to pay the prices is exactly because corporate landlords bought everything. AKA sucked the supply.

    Hahahahahhaaha. I’m not sure if you really think that way or only pretending.

    You are illiterate in economics

    We are talking about 100x profit vs 10x profit for developers.

    • vacuumflower@lemmy.sdf.org
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      1 year ago

      corporate landlords

      OK, maybe I was too quick to judge. See, in my country most landlords own 1-3 apartments which they rent out. That includes new construction. The idea of “corporate landlords” is not very common here.

      If there’s no way a person willing to be such a 1-3 apartments’ landlord can buy realty to rent out in USA - then you may be right.

      If there is, then my position doesn’t change.

      We are talking about 100x profit vs 10x profit for developers.

      You are saying that rent a landlord collects from an apartment in 10 years (you may make it 5 years or 20 years, should be the span of time in which landlord’s investment should return) is 10x the price for which the landlord buys it? That is, what you pay to a landlord in 1 year is the cost of the apartment plus utilities plus decoration plus furniture? I suspect this is not true.

      • uis@lemmy.world
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        1 year ago

        That is, what you pay to a landlord in 1 year is the cost of the apartment plus utilities plus decoration plus furniture?

        Cost of apartment if landlord would not participate in bidding. For person it would be 10%, not 100%.

        • vacuumflower@lemmy.sdf.org
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          1 year ago

          It wouldn’t, because a landlord proxies tenants’ bidding.

          It’s funny, I had some course (or maybe it was after class activity) for one year called don’t remember what in school (2 different things, one kinda economics, one kinda sociology), we’d basically roleplay political systems and economic systems.

          It’d give you the correct answer very quickly. Only you need a group of 20+ who are not all friends (like in a class).

    • MolochAlter@lemmy.world
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      1 year ago

      Since we’re throwing numbers around, give me your best guess as to the cost of building an apartment block, per unit. Ignore the cost of land for now.

      I’m curious to see if you’re going to notice a problem with your logic or not.

      • uis@lemmy.world
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        1 year ago

        Abooout 50-150k₽/m² of unit area or 0.5-1.5k$ depending on local labour cost, cost of materials in that area, building height and other stuff.

        EDIT: found mention that Yaroslavl Department of Building says it costs 48k₽/m² of some area(need to look in source). If it is cost of buiding entire building per total area(roof in not added), then per unit it would be around 58k₽/m² of unit. To buy unit after being built it would be around 150-500₽/m².