Comments by "Robert Rochester" (@RARochester) on "Yahoo Finance" channel.

@tjpm Interest rates are high thereby forcing first and would be home buyers to stay in the rental market; simple economics, more people ( demand ) in the rental market even if supply ( housing units ) stays constant, rent prices will increase. What's more a $50,000.00 down payment is practically worthless; it doesn't get you into a home but it does provide you with significant leverage in the rental market in the more desirable areas and it will be competitive because the would be homebuyers can PAY up front 12 months rent which leads to the first, last and security crowd to not renew their lease and move to less desirable areas simply because they can't compete. Further, landlord expenses goes up sometimes yearly once you factor in increases in property tax, homeowners insurance and HOA fees; in other words, rent is NOT going down anytime soon...........
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@Jaystyr424 time will tell; back at you son….name just one your friends that said “ guess what ? My landlord lowered my rent when I went to renew my lease “; name one homie, name one. I’m a landlord and I raised the rent by $350.00 more per month and guess what ? He was happy to pay it…..
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@Jaystyr424 Understood, however, the supply of rentals cannot increase in tandem with demand or even catch up ( it takes a long time to secure financing; obtaining permits; acquiring building materials, supplies and labor, this process can take years in some cases because of politics and the NIMBY crowd ). According to RedFin; in the US, there is a shortage of OVER 4 million units; you cannot build your way out of that and what's more, hundreds of thousands of college graduates will be exiting those college dormitories and will need a place and the specter of moving back in with Mom and Dad isn't what they bargained for; in other words, demand will outstrip supply. Rents will not continue to go up exorbitantly but increases will be slight and possibly plateau; basically the percentages will be the same. Demand will go up and so will supply; builders make more money selling million dollar properties as opposed to " affordable housing units "; remember the same building materials are used in both dwellings. You are correct; people will shack up with one another and some will move back home but these numbers are insignificant; it's not a pretty sight out there. Whatever housing units come online; they'll be snatched up by real estate conglomerates ( they're the only ones that can afford them ). A new way of life is on the horizon; a lot of people lease their cars and lease their homes as opposed to owning outright. It doesn't bode well for anybody; this I agree with........
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