For those looking for the actual data. It's from 2024 - says nothing about the current situation.
* ~37K affordable housing units (baseline) across ~400 projects
* 89% rent collection rate (down from 90.6% in 2023)
* That's 600 units that went 'delinquent' in 2024 - assuming a $24K 'base' rent (just a guess) that's $15M in lost rent.
* Deeply troubled projects (that can't survive without this rent) are at 11% - seems like the inverse.
* Cumulative arrears (unpaid rent) of $500M
Here's the problem:
* If no one had to pay, no one would.
* We've tried free housing before - it suffered tragedy of the commons. Not paying means no ownership means subjugation to the worst actions of the worst members of society.
* The projects fall into disrepair, there's no way to bring them back, because they won't be maintained.
Landlords aren't a great solution to the problem to be sure. They can be greedy and heartless.
The bigger problem is the bid up of asset prices - aka private equity and class warfare. As soon as you switch (from renting to owning) your incentives immediately shift.
There doesn't actually seem to be a way around this. Taxing to spend on rent ironically makes the problem worse because you just transfer the money into the cash flows of the owners.
Anyone thinking there's a simple solution to this problem hasn't spent enough time with the problem.
The solution is pretty simple: build and unreasonable amount of housing. And entirely new cities. America has enough land. We could build new infrastructure, give people lots of land or build houses like we did in the 40s and 50s. Of the price of a house was brought down to 1x the annual salary of the median individual income some of these problems wouldn’t exist. We need to flood the system with investment and inventory.
> The solution is pretty simple: build and unreasonable amount of housing. And entirely new cities.
So it is not simple. "Just build more" always comes up in those discussions, and while it does help (and has been proven to help), it is not the definite answer for the housing issues.
Build a new city from the ground up with a bunch of cheap modern housing, walkable and all modern goodies and ... nobody will move. People don't move just because housing is cheap. Actually many people are willing to spend a significant amount of their income to live in specific places. We move to have a job, to build a career, to be close to friends and family, to have better access to entertainment and activities, ...
This is why most developed country experience rural flight. The housing crisis is (mostly) a big city problem. You can usually find extremely cheap housing if you go deep in the countryside. And building is also cheaper (the price of the land is less, there is less permits issues, etc).
And for big cities, "build more" is way more challenging. Ground space is limited, so one solution is to build more vertical, but it is costly and has its own limitation. Spreading may cause issue with water management and require big investment in a public transport infrastructure if you don't want to have a nightmare traffic. Pollution can be a very big issue, etc.
And that's for all the non-political issues. The political side of things can get very messy, very quickly.
If there was a simple solution, every big city in the world would have done it by now.
> Build a new city from the ground up with a bunch of cheap modern housing, walkable and all modern goodies and ... nobody will move.
If you build a city full of empty buildings in a place with minimal existing population like the Alaskan wilderness then obviously. But what if you double the housing stock in all the existing cities where people want to live?
> Ground space is limited, so one solution is to build more vertical, but it is costly and has its own limitation.
Extremely tall buildings can get pretty expensive, but moderate height buildings (e.g. five stories) have similar per-unit construction costs to single family homes. Meanwhile now count the number of places you can draw a 100 mile radius where the median height of the existing buildings is even that tall. It might literally be nowhere in the US.
Notice also the extent to which density can thwart the scarcity of land. You put a five story building with four units per story on a plot of land instead of a single family home and the contribution per unit of the cost of land has gone down by 95%.
It would of course be a functioning state's responsibility to plan urban/city development and economic incentives to move there. Regarding the ownership vs renter housing debate: I think Singapore may be an excellent example of a state doing it's duty: affordable state-owned housing and people are distributed per housing per the national demographics so you also build social coherence vs ghetto-fication.
America already has plenty of cities that aren't doing very well, and aren't getting migration, so new cities aren't going to help. There's plenty of cheap housing inventory in the US, just not in the places where the jobs are.
America doesn't need new cities. There is an unbelievable amount of space wasted within every city and any urban planner can show you. Development policy in the 40s and 50s was backward and we continue to suffer the consequences today.
Absolutely, but it's easier to build quality mixed use development and walkable, bikable neighbourhoods when you don't have thousands of NIMBYs screaming down every proposal.
"This solution won't work in <ludicrously overextended case>, therefore let's do nothing!" -- common software engineering requirements management technique
... I'm talking about building new cities, which seems like the exact opposite of what you're describing?
Anyway, as far what happens when you make renting impossible (or just de facto not financially realistic), in Amsterdam it led to a lot of rentals being sold. The people buying had roughly 2x the income of those renting, on average. So, I guess that's a good thing, if your goal is to evict lower income renters so people can buy a place more cheaply. https://www.youtube.com/watch?v=t05cFv02pzY discusses this at length.
I live in one of the most populous metropolitan areas on the planet because it's the best place to live in the world. Increasing density and population is working great so far; maybe it won't scale all the way to 8 billion, but as and when there's a problem we'll deal with it.
That’s a bad example. Detroit isn’t an example of over building it’s an example of eroding the demand across the entire economy by outsourcing jobs. There is a big difference between a city with full employment with a robust consumer base that happens to have a ton of housing hit the market and one that has it’s entire bedrock industry carved into pieces over several generations.
If you want a valid example look at Austin Texas or Japan. Housing inventory growth in a robust economy leads to….wait for it….rent decreases.
Detroit was the hub of the auto industry. Outsourcing and foreign competition hollowed out the central city (which deliberately didn't have public transit) and left gigantic abandoned houses and skyscrapers throughout.
There has been massive public investment and popular support to cause a revival of sorts in the city and is a success story.
This happened throughout North Carolina where I live when textiles and furniture manufacturing was off shored. I assure you it wasn’t over building that caused the same outcome. It’s almost like the is an alternate explanation that is the common thread. What could it be?
It happened over a longer period obviously, and what happened is the US adopted a failed industrial policy that saw our core manufacturing base shipped to China for the benefit of Wall Street and the financial sector.
Globalization wasn't a loss for all of America - the benefit of shipping manufacturing overseas was that the resulting imports were cheaper than producing domestically. After all if they weren't, people would've preferred to buy domestic. So it was a net win for the consumer via cheaper goods, but came at the expense of Detroit, Pittsburgh and other "rust belt" cities & communities.
We're still grappling with the consequences. We should've invested in transitioning those workers to comparable or better jobs but the ball got completely dropped on that.
> We've tried free housing before - it suffered tragedy of the commons. Not paying means no ownership means subjugation to the worst actions of the worst members of society
We tried cramming people from generational poverty into one place and it didn't go super great, therefore public housing as a concept must be the failure, and not our hilariously bad implementation?
Singapore, Austria, Finland, and even a number of mixed income public housing projects in the US have actually done quite well. The narrative that it's all inevitably going to turn into the worst examples is pretty worn out.
> The bigger problem is the bid up of asset prices - aka private equity and class warfare.
This is definitely true: housing can either be affordable or it can be a safe investment, never both. Really private equity moving in on the safe investment is a symptom of the problem: regulatory capture by the landed gentry resulting in strangulation of production which benefits a small group at the expense of the greater public.
Public housing isn’t actually free in the countries you listed. It’s subsidized, but the people who live there still have to pay. The affordable housing units in New York are also subsidized. The question is what do we do if people stop paying even the subsidized rent?
> The question is what do we do if people stop paying even the subsidized rent?
If they stop because they actually can't pay it, then we should pay it for them. Another homeless person on the street makes us all less safe and less healthy, and tax dollars going toward keeping them housed is a good use of that money.
If they stop paying because they just don't feel like it, you evict them.
Why bother with such details? Class warfare is right, and details are details. /sarcasm
For example mixed income housing is really nice for “us” that have been in generational poverty. For “them” it is just living with signals of alcohol abuse, domestic abuse and more. All while their children get a good front seat into “empowerment”.
With sarcasm over, details matter, complexity matters, social assistance matters, a contingency plan for total failure to rehabilitate some people matters.
Many people would benefit from the Northern European style of institutionalisation where if incarcerated people would need to go to isolated communities and learn to buy groceries, cook a meal take care of personal hygiene (in Sweden they literally have prison islands where inmates have houses and must live as they would in the outside world. Then progressively move to temporary shelters to get their footing and then be released. If need be put those people in the countryside.
As a personal experience: Many German youths get sent to the middle of Portugal when their environment leads them astray. In the countryside there is a publicly funded host family or community to receive them and they have to learn trade jobs like being a painter or a plumber and get pushed into an normalised environment. There is no access to drugs as well in the middle of nowhere. There is alcohol but in the next morning there is work to do and people who are waiting for you. I met some of those youths when I was young and it always struck me that a good solution for failed communities in urban environments was to break them apart and scatter them into other more rural communities in such small units (family at most) that their habits would not impact the locals and that the habits could not be fulfilled as a matter of fact. Where are you going to hang out at night in a village of 1k? There is housing but you likely need to repair it; the locals will lend you a hand but they will exert peer pressure for you to normalise.
There is no need for class warfare. But there needs to be a warfare against antisocial self destruction behaviours.
Singapore system won't work in USA cities. Their town councils are near scholars level. Quite a few of them doctorate. They are pretty much selected on 2 criteria, merit and perceived likability with accountabilities evaluated both by government and locals citizens. American leaders are selected based on sound bites with zero accountability to citizens for maybe 2 years to 4 years. They do accountable to mega donors which almost always work against for the good of the public. Singapore also have world class city planners that entire America have never experienced or seen before. Heck even China look up to Singapore during 80s and 90s for advice. And the quality of people going to USA in the last 10 years are very low. Look at Singapore Amos going there. Meanwhile hundreds of American engineers migrated to Russia and China.
It only works in Singapore because there’s too little land. There is too little options. HDBs are capped value. While Condos are quite expensive in comparison, and you cannot own both. Singapore system for housing would be hard to replicate anywhere else without government stealing everything off the citizens and disallowing private ownership of land.
> We tried cramming people from generational poverty into one place and it didn't go super great, therefore public housing as a concept must be the failure, and not our hilariously bad implementation?
Well-stated! Yes, defective implementations with negative outcomes should not be used to make overly broad or even grossly incorrect assertions about human nature.
The thing that goes wrong again and again and again with public and low cost housing is that they build housing, and nothing else.
Stick a bunch of people in a tower in a field with no entertainment, no work nearby, building rubble surrounding their environment, no maintenance happening, no follow through on planned facilities, and the consequences are absolutely 100% predictable. Literally last night I watched a pair of bbc documentaries about a new estate, one from when it was new in the mid 60s, one from the late 70s. The residents are there in the 60’s, going “well it’s a pain having to walk all the way up but we trust that the lifts will be installed soon, and we’re looking forwards to the leisure centre” - fast forward 15 years, still no lifts, no leisure centres, and surprise surprise the kids are setting fire to cars to have something to do. If government won’t uphold the social contract, why should citizens?
The implementation is entirely the problem, and unfortunately few seem to realise that it can be done well. You can’t just make containers for humans and expect that to solve everything.
You're seeing the next version of this - cooked up by the smartest public policy people - fail in real time. That's what this article is about.
89% of these projects are - in fact - doing well. But that number is decreasing. The net result is less supply of public housing in one of the richest states in the entire world.
I don't understand why we can't just copy another country's housing strategy. There are many countries in the world where housing is affordable, relatively high quality, and the homelessness rate is low. What are we doing that makes this problem so seemingly intractable? Why is our approach to public housing seemingly worse than any other approach in history?
Far fewer than you'd think: The vast majority of Europe is in the same boat as the US.
Whenever there's value in agglomeration (ie, all the time), the value of well placed properties just skyrockets, because growth is only going to make that land better. That's why a common recommendation is to up the tax of land as to make speculation with valuable property a bad investment: It's already price like an auction, so higher taxes cannot increase rent prices. The problem is political, as countries with housing problems have a whole lot of individuals have a big percentage of their net worth in housing. Big tax increases would make their property values drop, and they'd be quite upset. So it solves the problem while losing elections.
Instead, governments are happy providing tax advantages to existing residents, in practice making prices go up even faster.
What makes the problem intractable is that we have a system where for a huge chuck of the country your retirement is based on housing prices appreciating. It's clear if you directly own a home but even if you don't lots of the places you park your money to watch it grow are ultimately investing/speculating on real estate.
Some might call it housing asset based welfare. Even if you don't like that mouthful another simple example is the University of California putting 4 billion into Blackstone's REIT with "a minimum 11.25% annualized net return through January 2028." That REIT is 90% rentals. So probably at least a few people will feel the squeeze from it.
It's the other way round:) Europe is salivating at the American real estate market. Some European countries don't have capital gains tax on real estate and real estate is the only investment vehicle without this tax. The only country where real estate prices haven't skyrocket looks to be Finland but their general situation is very specific and it's hard to say whether it's by design or by accident.
Social housing in Europe while exists, distribution of it is extremely corrupted process. Applying and waiting will give you something in 5 years or never, you'll know in 5 years. You have to be young couple both employed with perfect portfolio, or whatever the role model in that time and location is. Young couples both employed in desirable city basically don't exist anymore, even if you are after two rounds of waiting suddenly you are not a young couple anymore:) Usually you have to know someone and give a bribe.
That's due to moving away from the government ensuring an adequate supply of rental units over the last decades. Intentional free market style policies.
A bit of a misnomer. Housing is, actually, extremely affordable across the US - just not in major cities.
You can plunk $10-$20K and get land and a homestead in dozens of states.
Agree with the other comment that overbuilding is a reasonable strategy, but if you look at Detroit downtown (mid 2010s) having an overbuilt downtown is bad too.
Similar things in lots of countries. There are villages in Italy and Spain with near-zero housing prices. The qualifier that needs added is "housing in commute range of jobs".
And of course if 'jobs' becomes 'there is nothing a person can do that can't be more efficiently done by hiring AI more cheaply, plus you get to treat AI completely differently because AI is not a person' that complicates matters very much.
That's actually the same in most countries: the cities where everyone wants to move to (examples from Germany: Berlin, Hamburg, Munich) become unaffordable, and at the same time smaller cities and villages in less desirable areas (e.g. in East Germany, but also in more remote areas of Bavaria) are depopulated - there you can buy a cheap house, but you can't get a job. Remote working would have helped to somewhat alleviate this, but no, now we all have to go back to the office so we can sit there and spend the whole day in Zoom/Slack/Teams calls instead of doing the exact same thing from home...
Well we didn't exactly divvy up either housing or employment rationally, so looking through history without state subsidies and development, we're going to see slums pop up where the jobs are. Or just massive homeless populations I guess.
China managed this quite well with the hukou system, which allegedly is going to be loosened over time, but that seems distinctly unlikely to be understood by the powers that be here in the US.
10k??? Yes because I want to live in east bumfuck in a food desert and drive 40 minutes to the one megamart and where the services barely work and my police/fire/usps is on the next town over 20 miles away.
Did I mention the legions of uneducated anti-Christians who would probably kill me for being queer?
> The uptick in rental delinquency isn’t new. It started six years ago
It has nothing to do with Mamdani, for those of who don't want to bother to read. Most of this occurred under Eric Adams's watch.
Anecdotally, I do think covid made people a lot more aware of how deeply backlogged the housing courts are. It seems like a lot of people (like the anonymous one in the article) realized they could not pay rent and avoid being actually evicted for quite some time.
This is a recurring theme in city problems: Backlogged courts. Sometimes that's to the benefit of the less fortunate (here), but it also often results in terrible outcomes (see: Kalief Browder).
I think even the benefit for the less fortunate here is at most a short-term one. In the longer one, you need building and renting out shelter to be reasonably profitable, so that people do it.
It's basically the same argument that says rent caps are bad for the renters in the long run.
We don't always have to consider the apparently very fragile and fickle motivations of investors. Social housing can and has worked very well in many cases.
Unfortunately, most housing "investors" are people who bought a home 10-30 years ago and will be furious if they can't sell at a large profit compared to what they bought it for.
Sadly, a lot of places (Netherlands and Ireland come to mind) _discourage_ you from investing in things like stocks, and _encourage_ you to "invest" in a primary residence, making the problem even worse.
I currently live in an HDB property in Singapore. It's great.
I'm originally from the Netherlands, which traditionally had a strong social housing sector: regions and cities would have their own housing corporations ('woningbouwcorporaties') tasked with building affordable housing. Those corporations were given government support after 1950 to help with the post-WW2 housing shortage, but were semi-privatized in the mid-90s, and in 2015 their scope was strongly curtailed.
It would be reductive to say that this privatization was the sole cause of the current housing crisis affecting the Netherlands -- rents and housing prices have also increased a lot in Singapore since Covid -- but it probably didn't help.
Primarily Vienna. There's nothing complicated about what Vienna did - other cities just prefer to please billionaires instead of providing services to citizens.
Do you actually know what Vienna did? Because the overwhelming number of people who reference the city basically just repeat a few dubious talking point about restricting rent.
I don't know about restricting rent but they certainly had a progressive tax on high rents, a 1% income tax to fund housing, and then used that to build a ton of high quality social housing with balconies and amenities for all. I also like to think it helped that they slapped a big sign on each to proudly let people know it was their tax dollars at work.
I didn't stay in social housing while I living there but I never once heard people complain about it. They basically just didn't think much about it at all and felt it was a good system and then would ask me why the US only makes it for poor people.
I mean, to be fair, having your population semi-permanently depleted by two major wars and a fundamental loss of national economic centrality and prestige will help you keep a fixed stock of social housing lasting longer.
No one absolutely no one considers that to be remotely true. Look at French banlieues, German Plattenbauten or British Councils - they are synonymous with Crime and physical as well as cultural despair.
And while Vienna or Stockholm are often cited as Utopias, the citees often intentionally leave out the negative side effects (ie. Waiting-times of years, housing black markets, etc) that are eventually coming full circle to the thing they were proposed as a solution against. Just with much less transparency.
There have been social housing projects that paint a more nuanced picture, eg Hamburg-Steilshoop, where a giant block (for EU standards) has been erected in the 1970s and was basically divided into three sections: one to be run by existing housing coops, one by owner occupants, and one by the city. Needless to say that those parts run by the city were quickly becoming a prime example of a German „banlieue“ while the other parts became a prime example for those eager to dismiss any criticisms.
This was aggravated by modern city planning with it's separation of function that left these new districts with no third spaces, barely any shops and large spaces of 'no man's land' between buildings.
In classics European cities there were shops on street level and dense blocks that generated demand for those.
The post war developments followed the 'high rise in the park' concept, lots of greenery and parking lots between buildings to create a mid density neighborhood.
But there is no life in the streets and you have to walk a lot through repetitive environment but to do anything you still have to go to the 'old city'.
High rises were far from being the only, or even the dominant model for social housing in Europe. Different plans such as low rises, semi-detached houses and single homes also got implemented.
Those are even worse - you need a certain density for urban life, otherwise you'll just create large empty spaces that belong to no-one, so nobody feels responsible for them.
> Look at French banlieues, German Plattenbauten or British Councils - they are synonymous with Crime and physical as well as cultural despair.
Sure, because what existed before was absolutely fine [1][2]...
The truth is that these policies worked so well that pepole completely forgot what existed before. The alternative to housing projects wasn't a country without crime or despair, it was more crime, shanty towns, people displaced by war and unable to get back to normal life, and young workers unable to move to places of employment in the postwar economic boom. That topic was so uncontroversial that every european government, leftwing or rightwing, did it.
I agree that a social housing project alone isn't enough to fix every problem, but that doesn't make it the source of other unsolved problems.
Sure, areas where aggressive migrants create a law-less area, where race based gang violence is a daily occurrence, each country now and then “discovers” its own rotherham-style ethnic rape-ring and police cars are sometimes burned down with the officers being locked in on purpose, are totally normal, so much better than before and were happening before anyways
Blood from a stone. Sure the landlord could theoretically go after them, but they would spend a bunch of money on legal fees for someone that will probably never pay it back.
You can't blame Adams for delinquent payments. He dramatically expanded housing vouchers (the source of the budget crisis) which in theory should have reduced delinquency.
Moreover rents for affordable housing haven't kept up with inflation while benefits have.
Arm chair speculation like what's in the article won't suffice. People need to be surveyed and interviewed to get to the bottom of this.
> “There is a subset of people, maybe the smallest subset, who are literally making a choice not to pay rent, and we don’t do well with acknowledging that but there is a subset for whom that is the case,” [...] Others bristle at the notion that some tenants are not paying rent just because they may be able to get away with it.
These people absolutely exist. To pretend that they don't is willful ignorance. They are, however, indeed a "small[est] subset" to quote the gentleman in the article. In the era of $4 McDoubles and $6 gallons of gas I have trouble believing that one in four people is my burnout college roommate who spends on Fireball shots and Xbox games instead of paying rent. Life is expensive these days.
I anecdotally know of a few cases in Seattle where tenants with high incomes that could easily pay just don't. There is a subculture that actively encourages this type of behavior and the laws are setup such that there are almost no consequences for it. I've also met people who bragged about doing it. While rare, it is still common enough that it has become a real problem and has become socially acceptable in some circles.
It is corrosive to the social contract when government policy tacitly encourages this behavior.
It's not rare. I repeat. It's not rare. I am a landlord in Seattle with ~55 active tenants/leases. Let's just say that I know of many landlords in the circles I run in that have absolutely stopped renting to leftie types because they've had so many issues over the last few years with many of them over litigating everything; and deciding not to pay rent over the smallest non-issues, or just not paying rent at all. I could cite case after case; and this topic is especially salient to me in the present moment because I am in fact dealing with one of these tenants right now and its a total nightmare. I will spare you the gruesome details of trying to work with this particular tenant but just trust me—I have an incredibly high tolerance to stress and this individual is doing their best to get as far under my skin as possible.
When the political class or the cultural zeitgeist tells you over and over that landlords are leeches and that "any attempt to profit off of housing is unethical"—people are going to take that to heart and have a hatred for even well-meaning small landlords. If you don't believe this is the attitude, go visit r/Seattle. The inflammatory language of politicians and cultural leaders sets the tone which plays out as legal battles and fights in properties across the city.
This obviously creates an adverse selection problem where small landlords illegally apply their own prejudices and biases in tenant selection. Honestly—could you expect them not to—when the repercussions of picking a bad tenant are so great? And when there are other demographic groups—like immigrants—who are absolutely, verifiably and consistently reliable as tenants. It used to be that it was the section 8 or low income type that were a huge problem but now there's an educated leftish fringe that landlords are also avoiding. Honestly with good reason, IMO.
Some homeowners just decide to not list extra rooms in their house outright. I remember hearing something like that Seattle has the highest number of unrented empty rooms in the country (though someone should fact check that). With the political climate the way it is here, it's obvious as to why this is the case.
Its spread across about ~ 6 houses. I'm definitely a small landlord. I deal with all tenant issues myself, handle all repairs, leases, and most importantly for me—maintain a healthy relationship (which has grown to many friendships). I use this term in contrast to a faceless, corporate landlord who owns larger apartment buildings. Small landlords and corporate landlords are nothing alike
Being generous with your ~6 number to be either 5 or 7 houses you have either 7.8-11 people per unit?
That's slumlord territory and not any morally better than corporate landlords unless your average unit size is a 4 bed/2 bath.
Also there is zero world where you have 6 houses, 50+ people and can call yourself a small time landlord. That's being able to live entirely off of your rental income and a full time landlord. You could maybe, _maybe_ get away with describing yourself as a medium time landlord.
Small time is living in a 3 floor house and renting the other 2 floors, or owning 1 other home to rent.
I'm sure OP meant 6 houses with several units in it each, not 7-11 people per house. Otherwise the distinction between house and unit doesn't make sense.
This is a small time landlord. Large landlords have easily over 10000 units, and he is one half of a percent of that.
I hope he is able to live off the rental income. It's a big job to manage 55 units and keep everything in shape and administratively going, deal with turnover and so on.
nah, having 6 buildings(not houses, if were being precise with terminology here) with multiple units in each, is not a small time landlord. If you can live entirely off the rental income then you are a full time landlord and can at best claim that you aren't a large corporate landlord, but you don't get to invoke the idea that you are some sort of mom and pop situation renting out a spare unit, which is what people assume when you say "small time landlord"
I'm the OP—just chiming in, I can just hardly live off the rental income I make, but its a lot less than my salary as a senior SDE. Yes what I am is not analogous to someone renting out a few extra rooms. I just think my experience is analogous to that of a small time landlord in that I know each tenant very well and we have good relationships—and I manually handle each part of their tenant experience. To add more detail, I share a bedroom in a 25 bedroom house that I own, which accounts for a bit more than half of my tenants.
That's a telling detail. How many 'big time landlords' are in the position of living in one of their 25 bedroom units? I'm going to skip the 'share a bedroom' 'cos that might well mean something otherwise desirable. In the best case scenario I too would be sharing a bedroom, but it wouldn't be my best case scenario to be in a 25 unit building unless it was quite large and well built.
> I can just hardly live off the rental income I make, but its a lot less than my salary as a senior SDE
there is a large gap between "can live off of"(my words) and "a lot less than my salary as a senior SDE"(your words). If you're making more than the median household income which based on the fed numbers is ~84k/yr[1] you've crossed the line past small time landlord. You may be making less than that, but I am going to be surprised if you are with ~55 tenants.
I didn't invoke a "mon and pop situation renting out a spare unit" idea, that's your own that you're projecting on my comment.
I did say that they are a small landlord, and I stand by it given that a large landlord is several orders of magnitude larger than them. If in your world that's only a label you want to give someone renting out a single spare unit, then so be it. I disagree.
Those are effectively synonymous to me. The line in the sand that definitively makes you not a small time landlord is if you earn enough from rental income after expenses to make as much as the average job's income.
If you disagree I will need you to define what "small time landlord" means to you then so we can figure out the gap in our understanding.
55 isn’t small by definition and under the law. You may feel small because it’s just you, and you don’t realize how much you’ve accomplished or the asymmetric bargaining position that affords you but your perspective isn’t corresponding with reality.
That being said, I do think a system that tenant rights to be as abusive of legal process as we have in some states ends up hurting tenants themselves. I think our courts should move much faster so nonpayment is resolved faster. But I also think all landlords should be required to pay 20% of rent to a home building fund so that new housing actually gets built.
Yes. And the other one is forced to charge 1200. So the other one can charge for example 1190. And the renters will choose the 1190. And then the next renter has to pay 1200.
Or the one without mortgage goes like I only get 800. Maybe instead I just throw this money in government bonds for better gains and save money...
Other option for same outcome could be just to charge any renter 20% on top of their rent. Which they directly pay to this fund. That would push rents down as they are able to pay less. Achieving exactly same effect.
If leads to building that floods the system with supply then rent won’t increase. Landlords and lenders would have to adjust purchase prices and cap rates so valuations would come down. So this would need be gradually phased in until normal. The government would need to support home builders, buyers and landlords. But eventually the housing stock supply increase would match and be tied to new household formation.
At the end of the day most economic activity is really an exercise in ratios. Some states don’t charge sales taxes. Some change double digits. Yet retailers are able to function in both environments.
What is clear is that rental and purchase housing is increasing beyond inflation since 2008 and COVID and that’s not good for tenants or landlords.
The net effect is most of the people I know with a rental or two in Seattle will only rent via direct referrals from people they know, which also allows them to rent at a lower rate. Their properties are no longer available to the general public. The demand is high enough that this works. Sucks if you are new to Seattle though.
This kind of non-payment of rent abuse exploded during COVID.
> And when there are other demographic groups—like immigrants—who are absolutely, verifiably and consistently reliable as tenants.
I know someone with something like 120 units. Unassuming nice old lady that makes over a million a year. She tries to rent to immigrants as much as possible since they don't cause issues.
The best people to rent to are illegal immigrants, you don’t have to do things like ensure they have livable accommodation as they first sign of complaint you just phone up the authorities and they get kicked out.
The lefty landlords are an even bigger problem for housing affordability than the lefty tenants. They want the anti-property rights boot up the ass of anyone trying to build new homes or dwellings, under the auspices of endangered owls or environmental review or "character of the community" or the wetlands or whatever the current scam is. It's all the same commie shit but only for themselves and at the expense of everyone else, of course dressed up that the dumber and younger end of the tenants actually believe it's in their interest.
I’m curious how they’re managing to do this. I don’t give any outward signals of being a “leftie type” but I absolutely am. Conversely, I know lots of people who have a very punk look but are super conservative.
I just try to be the landlord that I would want to have. I respond to my tenants quickly, always give them concessions, let them pay late, or at a discount when they’re struggling, referred them to work at my companies, etc, etc. it’s not all about the money, it’s also being a good member of the community, for me. This is in contrast to a corporate landlord where your $1500 disappears into a void every month.
That’s awesome. When I was growing up my parents were denied housing because they had too many kids and were almost homeless one time until a nice landlord of the same religion agreed to rent to us. Please take your responsibility seriously as it seems you do.
That being said there are “professional” tenants that try to scam the system to the detriment of landlords and other tenants. I would fully applaud resistance to their efforts to take advantage of the system.
> From perspective of your tenants, that money still goes into a void, no matter how nice you are.
Surely that's the case for all sorts of services we pay for. Renting a house is paying for a service. The money disappears and in return you get the service. A nice landlord (and by nice I mean - responsive to problems, following laws, empathetic to the tenant, trusting of the tenant etc) provides a better service than a bad one. Unfortunately you rarely know which kind of landlord you have until you move in.
I think it's fair to say that there are bad landlords, and that there are circumstances where landlords are exploitative. But that doesn't change the fact there are also circumstances where landlords provide a useful service to people. Buying a house isn't always practical - landlords should exist to provide a service to people who don't want long term financial commitments.
Much of the land in New England / northeastern USA was apportioned to proprietors without any service rendered, plus squatting on grandfathered regulations that no one else can take advantage of. The actual improvement is a service, but commonly it's something like a shithole house where the physical manifestation of the improvement is like 10% of the real estate value.
In someplaces like Kansas where people actually mixed their labor with the land (homesteading) to claim it and then improved it and the title transferred in capitalistic exchange, landlords are basically 100% providing a service. But in New York very little of the "value" provided has anything to do with services and labor mixed with the land as someone like Adam Smith envisioned as value generation. It's largely just some proprietor being handed land in the 1600s with the wand of a King, taking the shit by violence, then making regulations out the ass with violence (to make their shithole house pretend to provide a more valuable 'service') and then exempting themselves via grandfathering and then people exchanging title for same. Their service is a legacy of beating the shit out of Indians with weapons and then the populace with government and then allocating the value to themselves.
What exactly are you asking for? They clearly are expressing empathy for others’ situations.
I live in a managed building that is completely soulless. I needed to extend my lease by one month before moving out. They wanted me to sign a new 12 month lease at a higher rate, break it, and pay a two month penalty for terminating early. This took over a month to get to something remotely human.
There is absolutely a difference between someone treating people like people and bad landlords.
Also, they aren’t throwing their money into a void. They’re literally getting housing.
What are you basing your judgment of OP on? He is listing various ways he goes above and beyond for his tenants even though he certainly doesn't have to. Your credit card company doesn't waive your late fees, yet he does when he knows tenants experience hardships. That's pretty awesome.
Also, the money doesn't go into a void: Tenants receive housing in return.
> but I think you've drunk a bit too much of your own kool-aid
That (rather judge-y) part negates the "nice" part your started out with. I don't think OP "drank too much of his own kool-aid", he simply listed all the nice things he does for his tenants, which are great and well beyond what you could expect from an unrelated party in a contract for a service.
I'd like to try and give you some sympathy, but my last landlord was a well-regarded property management firm who left me with no heat from the end of October to the weekend of Martin Luther King Day in New England, effectively only fixing it once I withheld rent, got on the local news, and was threatening a lawsuit. So, uh... yeah plenty of landlords have done a lot to earn that reputation for the class as a whole.
That's true, but I think when you pick a place to live in, you're not only really only interviewing the living establishment itself, but also the landlord/property management associated with it. I make an effort to do all of the tours of the units myself and establish good repoire with the tenants from the get-go. It's certainly inexcusable if a landlord doesn't fix things that impair living conditions—in Seattle we have a law that things of this nature must be fixed within 48 hours which I think is a reasonable law.
Yes I’m doing it for the money, I have to be compensated for my time and the financial investment obviously. People who decide to deceive me break not only a social contract but also a legal contract and a commitment they made at the time of signing a lease. If everyone acted like them, there would be no stable housing available for anyone. Talk about a bad take…
I never said my only interest is money. At your job, is your only interest money? Do you not feel a social obligation to your coworkers; want to do good for your teammate and your company? Again, talk about a stupid take, as if humans are one dimensional like that. Corporate landlords and hedge funds that own apartment sky rises are probably only in it for the money. You can't say the same thing about every small landlord just because they make a profit.
'We've already established your only interest is money'
'I never said my only interest is money'
---
Bad take, stupid take, he said.
Let me help you - the act of being a landlord, big or small, presupposes interest is money first, everything else a distant second, third and so on.
We're now at the level of a 7 year old, down from about a 10 year old that I started off with. Feel free to engage with what I've said as a whole instead of pedantry over the use of a single word anytime you wish.
Wow, way to not actually read what a person said, and then quote things and say they mean something that they don't.
I get that you don't like the concept of people owning property and renting it to others, but maybe stop arguing in bad faith?
Here's a hint: it's possible to be doing something for the money, but not only do it for the money. It's possible to operate a business, but also be a well-meaning person who treats customers of that business with empathy and compassion.
I don't know the landlord in this subthread, so I can't say if he's telling the truth about how he treats his tenants, but if he is telling the truth, he sounds better than the vast majority of landlords out there. Not just better, actually good.
Dialogue isn't supposed to run on flippant remarks.
Also, you're not qualified to have an opinion on the matter. Dunning-Kruger effect is extra strong when it comes to the holy matter of sociopaths making money in places like these.
Lefty tenant here. I def. stopped paying my rent a few times until my landlord fixed their shit or agreed to stop scamming me.
Last time I did it I signed a lease for a year, with 2 months of advance notice if I decided to leave (in the UK). I told them 2 months before the end of my lease, and they told me I had to wait for the end of my lease, then wait 2 months, and then I could be out.
I just stopped paying rent, and left them a horrible one star review on gmaps.
One day he showed up at my place (with soup who was coming to fix something) and tried to enter. I told him to stay out. And then he started crying and telling me how I could not just stop paying rent. I could tell how hard it was to be a small landlord.
I told him that I would resume paying if they signed smthg to agree to let me break the lease at the year end AND reimburse me the fees that appeared at the least minute, a year ago, right as I was signing the lease in front of them.
They agreed, reimbursed me my caution/deposit at the end, easy.
Would recommend just stop paying your rent if anything ever happens. I would do it again.
What we see is iterated prisoner's dilemma. Enough people have had their landlords play "defect" against them (rent rises in excess of wage inflation, evictions, failure to do maintenance, intrusion) that the public have started playing "defect" against the landlords.
He said “anecdotally”. In any case, I was wondering that if I know a friend who does this, how could I ever present a verifiable citation for it? You may have to rethink your ask.
Okay. I can anecdotally tell you that user jandrewrogers does not know of any cases in Seattle where tenants with high incomes that could easily pay just don't. Our anecdotes cancel each other out.
> how could I ever present a verifiable citation for it?
There would likely be at least one (1) report of such a wild claim due to how wild it is. We wouldn't need anecdotes!
There are such people. I have a unit in Seattle that sits empty because I don't want to risk getting stuck with such tenants.
In Seattle, you can't:
1. Evict people from November to April (it's "winter").
2. Evict people with schoolchildren during the school year.
3. Run background checks on prospective tenants.
4. You _must_ rent to the first qualifying tenant.
5. You must offer 3 months in rent as compensation if you decline to renew the lease.
6. The maximum rent increase is capped.
Oh, and eviction process takes about 1.5 years now because the courts are overloaded and the tenant can use procedural tricks to drag out the process.
Many people do. I certainly never wanted anything to do with that rental market when I had a vacant condo.
The unintended consequence is that there are closed rental networks that never advertise and only rent to vetted people with reputation on the line. These often have cheaper rents than publicly advertised rental properties because the risk of bad tenants has been reduced.
It turns the public rental market into an adverse selection phenomenon. Over time, the best tenants have access to cheaper better rentals that are never even visible to the average rental tenant.
Apparently, even with all these rules designed to damage the profitability of landlords, being landlord must be extremely profitable as they keep doing it.
It's not. Seattle is losing small landlords left and right. Instead, people are selling houses to large management companies that can spread the risk across multiple units.
Apart from maybe being a little more flexible on evictions, none of the other reasons seem problematic.
For instance not renting to the first qualifying tenant is a common root for discrimination. Why wouldn’t you rent to the first qualifying candidate?
The giving tenant three month rent thing is for a very small circumstance - for example huge rent increases if the tenant income is low, condo remodeling, etc. The wording is: “landlords who issue a housing cost increase of 10% or more (within a 12-month period) must pay relocation assistance if the affected household earns 80% or less of the Area Median Income and chooses to move.”
Maximum rent increase being capped also makes sense - I’ve been hit with 15-20% rent increases with no choice but to move.
It seems like you don’t like the tenant having any rights, and you want to impose your will upon them.
Are you also wanting a company to have to hire the first qualifying candidate and immediately stop all hiring? That is nonsensical. A landlord and a tenant should be free to contract as both parties wish.
Does this "first tenant" rule not incentivize people to apply immediately, sight unseen, and then they just eat the credit check fee on the apartments that they end up not choosing? Or maybe they can even bail before the credit check is done, if they can see all of their candidate apartments in that time, or at least do see the one they applied for and decide they don't want it?
> For instance not renting to the first qualifying tenant is a common root for discrimination. Why wouldn’t you rent to the first qualifying candidate?
You should be able to select freely who you want to have live in your house. If you're a building owner, there are reasons that you might want to be able to have freedom of choice in choosing who you have live in your building. When the government forces you to choose the first applicant who meets your selection criteria, your selection criteria becomes incredibly strict—720+ credit score, makes 4x the rent, etc. Especially when evicting a bad tenant becomes basically impossible, landlords work even harder to vet candidates, meaning there are a lot of false negatives that aren't offered housing. Seriously, you can't evict a tenant just because its winter? You know how many people take advantage of that — read my sibling comment in my thread. I myself in Seattle have dealt with multiple tenants who have done this so they could have free rent as their lease expired. What do you think this does to my tenant selection process? I up the bar.
> Maximum rent increase being capped also makes sense - I’ve been hit with 15-20% rent increases with no choice but to move.
You act like there's an oligopoly that dictates rent prices from their mountaintop that we all have to abide by. We live in a free market, and small landlords compete with large buildings for tenants. Creating these types of caps just makes the system less efficient — focuses efforts on the false pretense of tenants rights rather than the true equalizer like building more housing. And honestly, it just drives small landlords out of the market who can't handle it. This just leaves corporate landlords who are certainly less tenant friendly and will further this tenant vs landlord arms-race. We should be creating incentives and making it easy for individual homeowners to become landlords (at least in Seattle) if we want the paradigm to improve.
I've lived in properties with no form of rent control whatsoever. Landlords issuing 10%+ rent increases is awful. it denies you the stability that's granted by fair/consistent rent increases. It erodes the community fabric by having a revolving door of tenants who live there 1-2 years before leaving.
I do agree that we should focus on other remedies such as building more. However, even in a market with ample housing, I'm not convinced that some Landlords would still just as happily take the 'I bet they'd rather a 10% rent increase than deal with the hassle of moving' gamble.
Most of the people I've met who are anti rent control/stabilization usually don't have the pleasure of a landlord who has decided to engage in such tactics. Almost always they argue from some place of guaranteed housing safety.
this is an issue that applies to people making 30k and also people making 300k.
I like the approach Finland took when it abolished rent control in the 1990s. Basically, you are not allowed to chain fixed-term leases indefinitely. If the actual intent is that the tenant stays until further notice, the lease agreement must reflect that.
Now, if you have an indefinite lease, the landlord can't increase the rent, unless the basis for the increase is already in the agreement. Typically the rent is tied to a measure of inflation, and the landlord chooses once a year if they should make the increase.
> You should be able to select freely who you want to have live in your house
We already tried that. It turns out that people are racist, so now we need laws to protect against that. It sucks for all the decent non-racist folks but the alternative of not having those protections was far worse.
If you force people to have someone in their house that they don't want, they are not going to rent their house out. This will lead to less units on the market. Your point about racism is fair, but I don't think the answer is a solution that reduces rentable units on the market.
The one that actually exists? Have you never heard of the HUD fair housing initiatives programs? You hire a white actor and a black actor with the same job, income, credit, etc and if a landlord consistently refuses to rent to the black actors, you sic the DoJ on them for violating the Fair Housing Act
Nope, I hadn't heard of that. Neat. I see two problems though:
1. I can see this being effective against larger landlord that will have many units available every year, ensuring that adequate testing can be performed. But on smaller landlords with only a few units, it seems like it'd be hard to test. (for example, you get rejected from an apartment. The landlord rents it out to someone else. You file a FHIP complaint, but the landlord no longer has any units available so they cannot test.)
2. It seems like this is largely driven by complaints? If I was rejected from an apartment, I'm not sure how I'm supposed to glean whether or not it was based on race.
Re #2: I feel like people of the kinds of races that often get discriminated against have pretty decent radar when it comes to figuring out why they were rejected.
How is renting different from hiring in that regard? Nobody would consider requiring employers to hire the first qualified candidate, but at the same time, we don't allow employers to discriminate on the basis of race.
Why couldn't the same law apply to residential leasing?
Are we sure that law is working as intended? Or are employers simply not admitting to factoring race into the decision? It is next to impossible to prove a candidate was rejected on the basis of race, especially when you can legally reject someone for not being a "culture fit" on the team.
I'd also argue the stakes are higher when leasing, so landlords will be less likely to take a chance on a race they don't like. Most jobs in the US are at-will employment so you can be fired at any time for almost any reason, but evicting a tenant can be a long process.
>t is next to impossible to prove a candidate was rejected on the basis of race
It is possible to prove a company is disproportionally one or the other when making the claim. Of course when an industry has far less applicants or members of a certain group that's to be expected but still.
Consequentially I've heard of some pretty blatant race based selection especially in the US.
It's just that that selection ends up excluding white people (or east asians)
A while ago I even discussed with a hr person here on hn who was defending their hiring of that sort with the most flowery wording about 'just giving priority' or 'reaching out to members of their prefered group specifically' fist if all they get is not the desired group.
> You should be able to select freely who you want to have live in your house. If you're a building owner, there are reasons that you might want to be able to have freedom of choice in choosing who you have live in your building.
That’s basically discrimination? Make a strict selection criteria, that’s fine. The city also has affordable housing for people who don’t qualify. You set what works for you, why do you care if it’s too strict?
I am not acting like there is an oligopoly, but not having tenant protections means tenants are at the mercy of shitty landlords. And there are a TON of them. Am I not supposed to have any rights, and the landlords gets to do whatever they want? Free market doesn’t mean regulation free.
Edit: you said “We should be creating incentives and making it easy for individual homeowners to become landlords (at least in Seattle) if we want the paradigm to improve.” - what do you propose? What about landlords who don’t want housing built because they like owning a scarce asset? What kind of rights do you think tenants should have?
Yes, discrimination based upon characteristics that aren't immutable is perfectly fine and something we do every day. I discriminate against my neighbor who invited me over drinks in favor of my best friend who invited me to his birthday. I discriminate against the potential hire who doesn’t have experience in this line of work in favor of the person who’s a nationally renowned expert. I discriminate against a tenant with a history of failing to make rent in favor of someone who consistently provides payment every month. People are different and valuing one over another in specific contexts is hardly scandalous. It only becomes a proble if you decide to discriminate against someone based upon immutable characteristics such as their race, sex, national origin, etc. because you’re not treating them as an individual.
I get where you’re coming from, but none of them are scarce inelastic resources. The work one especially doesn’t feel like discrimination.
It’s also very different - you’re hiring someone to do a job for you, vs wanting someone who’ll pay rent on time and not destroy the property. A mediocre employee vs an excellent employee can make any huge difference to a business.
That’s not the case with renters - if person A and person B both pay on time and don’t trash the place then they are quite fungible.
> if person A and person B both pay on time and don’t trash the place then they are quite fungible.
Based on those two sole criteria, no, they aren't. Person A might call weekly about trivial matters that they should be taking care of themselves (lightbulb burned out, oven needs cleaning, refrigerator water filter needs replacement, etc.), while person B just takes care of things and doesn't bother the landlord.
Your experience as a renter is not the same as the experience of a landlord. If you've been on your first job for a month and you pinky swear to pay rent on time and the next candidate has been on their job for 3 years then I'll take that candidate every time. It's a risk calculation. You are more likely to lose your job than the other candidate, and when you do and can't pay rent anymore and won't leave then that is a very expensive problem for me.
The same goes for savings, credit score, and other factors. These are not nearly as fungible as you seem to think.
Discrimination is fine, as long as the discrimination is not based on protected classes. If I were a landlord, I'd discriminate against people who act like assholes, for example, regardless of their ability to pay the rent, my rationale being that an asshole will likely be a problem tenant. And that I just don't enjoy dealing with assholes. Not sure "no assholes" is a reasonable thing to list on an official rental advertisement.
Nothing on that list sounds like a particular hardship. Your "Oh, and" is unfortunate and ought to be addressed, but then again, that was intended as your cherry-topper, not your main course.
This is people's _homes_ we're talking about here, not a baseball card where privileging the owner is without too much consequence. If you lack the empathy to understand why this is a special case, maybe don't be a landlord.
They can't walk in, wipe their shoes on the hallway rug, make a pot of coffee, use the bathroom, turn on the TV, and take a nap on the couch. At least not without their tenant's invitation.
When they chose to rent out the house they yielded some of their property rights. The old landlord argument that "it's my house I should be able to XYZ" doesn't hold water.
Why should landlords have that expectation? I think the default case should be that when someone rents a space they have freedom to do what they want with that space until they stop renting it, and then when they stop renting it they must be forced to return it to its original condition.
Did you know in Australia it's normal to give your landlord a tour of your house every 3 months to prove you haven't broken it? That's completely ridiculous.
Someone I know rented a flat in Draguignan to a "friend" of a "friend". After some time he stopped paying the rent and bought alcohol instead. It was a tiny rent but it lasted for a long time. She didn't have a mortgage on it but still I don't think I would be that patient as a landlord.
> They are, however, indeed a "small[est] subset" to quote the gentleman in the article.
The numbers don't have to stay small because this behavior is not generated independently in a population. Multiple people may become aware of it by talking to each other, social media, forums, some crazy news event that refers to it, etc. All of the sudden a lot more people decide they can do it as well and tell their friends.
I am not defending it or saying one side is right or wrong just that when it comes to things like this there may be a different model at play on how this behavior is generated.
There's entire Reddit communities of these people where they encourage and validate their shitty behavior.
With some of the stories I've read, you'd have to be positively insane to be a small-time landlord these days, especially in these large cities with kooky renter protections that make it nearly impossible to evict someone.
Go watch Pacific Heights with Michael Keaton for a fictionalized account but this stuff absolutely happens every day.
I saw one recently where the renter has not paid rent for six years and is unable to be evicted. It made national news.
So where does that leave the industry? You eventually push out the mom and pop landlords by making the regulations so insane it only leaves behind the large corporate property management companies and their army of lawyers. Who will collude and drive rents up. It's a vicious cycle and these cities are not helping one bit.
Doesn’t help that the landlords want to squeeze the renter for what they are worth. It’s weird to me that shitty landlords are normalized but shitty tenants get a (rightfully) bad rap.
These laws become the way they are because landlords brought it upon themselves for the most part - they’re keeping assets that have massively increased in price and want to extract more and more out of the tenant.
If you have a home that’s paid off your expenses are basically just property taxes, maybe they should do what they can to keep good tenants instead of chasing profits.
> These laws become the way they are because landlords brought it upon themselves for the most part
These laws seem quite unrelated to the problems.
There needs to be laws to protect the renter against bad landlords and there needs to be laws to protect the landlord against bad tenants.
Nowhere there it implies there should be insane laws that make no sense. Such as creating a system where someone can skip paying rent for many years and continue to live there.
Landlords need laws that hold their feet to the fire to maintain the properties to a livable standard (the state/county should define) and fulfill any other obligations of the lease. At the same time there need to be laws that force the renters to pay on time and not destroy the property. It's not a case of one or the other.
I’m not denying any of that. If you don’t pay rent it makes sense that you’re evicted. This is completely okay with me, and the city should change their rules around it.
The issue is that housing is a necessity, and the relationship isn’t an equal one. A landlord can usually absorb vacancy, repairs, or a bad investment decision; a renter can’t easily absorb losing their home or a sudden 20% rent increase.
> a renter can’t easily absorb losing their home or a sudden 20% rent increase
Right, so let's pass laws (where not already in place) that prevent sudden eviction (e.g. nobody should be able to be evicted if they are a few days late or even a few weeks) and prevent sudden 20% rent increases.
No need to pass laws that prevent eviction for years. We can solve all these problems without causing other problems.
the obvious middle ground is preventing eviction until a new tenant is found. if you owe 3 months of back rent your landlord can put up your apartment but you can stay there as long as nobody takes it. if you pay back your debt they have to cancel the listing and keep your lease. that way theres less empty apartments and homeless people putting pressure on support systems.
Rental prices stay surprisingly steady even when house prices go insane - compare similar apartments/houses in major expensive cities and cheaper ones.
They're limited by what people will pay - and "techbro" cities have people with insane salaries willing to fork over big bucks. But there are similarly expensive areas that don't support the income necessary, and there often you find huge rental inversions.
I'm not sure what you mean by "squeeze the renter," but it's hard to find any person that invests substantial money (risk) in a business that doesn't want to maximize profits and charge what the market will bear.
Laws became the way they are because policy created a housing shortage, and renters are a bigger voting block than landlords.
I look at it this way: housing is a basic human necessity. Structuring it as a standard business is a detriment to society. Sure, being a landlord is a business, but the whole "maximize profits" thing and "charge what the market will bear" thing should not be allowed for housing.
Totally wrong. A home has a lot of expenses beyond taxes, especially maintenance/upkeep. If the landlord just breaks even, where does the money to repair the roof come from?
Also, providing housing is a service that should be done at market rates, and as an investment must yield a return to make sense. Or do you expect stock investments to yield nothing and just retain their value too? Should companies not raise their prices for goods? Do you realize that this also means that you would never get a salary increase? Are you never asking for a raise because you'd be "chasing profits" for yourself?
There's a huge lack of financial literacy in some of these comments.
Homes do have a lot of expenses but it depends on when you bought your home. If you have a cheap mortgage then rents can quite easily cover repair costs. Landlords also minimize the maintenance costs by cutting costs wherever they can. I also never said they shouldn’t make money - they absolutely should, otherwise nobody would want to be a landlord.
But, I think you are overly harsh and your comparisons misplaced. Homes are quite inelastic and a necessity for everyone. They are very unique category of assets. Financial impacts to a landlord vs a renter is also quite lopsided - a landlord has far more “financial padding” to account for macroeconomic shocks compared to a renter, so you end up with some protections in case of sudden job loss. They have morphed into something worse now, but the intent makes a lot of sense.
> providing housing is a service that should be done at market rates
That's an opinion, not a fact. I don't share that opinion. Societies are healthier when people are housed, and when that housing is well-maintained. "Let the market decide" often doesn't get you that.
> an investment must yield a return to make sense
Agreed, but we can and should cap that return if not doing so leads to housing insecurity.
> There's a huge lack of financial literacy in some of these comments.
From you I'm seeing a huge lack of understanding about what capitalism is good and bad at.
Nonsense. We came up with a name for those terrible landlords they are called slumlords. NYC even has a whole website dedicated to them: https://www.landlordwatchlist.com/
Tenant "protection" laws are the type of idiocy that economically illiterate progressive politicians always produce. They end up having the opposite effect by making property owners less willing to rent out to anyone. The only effective way to protect tenants is to set public policies that encourage new housing development. When there is a housing surplus, the laws of economics force landlords to treat tenants well. Build more housing!
Tentant protection laws are always a matter of degree.
Requiring a process in order to evict tennants is a good thing. If the process is unsatisfyable or extremely lengthy, I don't think it's a good thing anymore. There should be a way to get destructive and severely disruptive tenants out in a hurry. Ordinary breach of contract things (failure to pay rent, problematic behaviors that violate the lease but aren't an immediate issue, etc) should have something like a 3-7 notice period and then be referred to court and figured out without undue delay.
I'm ok with limiting the reason for the landlord ending a lease, especially where the tenant has stayed there for a long time.
IMHO rent control/rent stabilization can be useful when the cap isn't set too low, and there's reasonable ways to pass through less predictable costs. If the cap is too low, rent gets significantly behind the market rent which causes trouble for landlords but also leads to situations where renters end up stuck where they are; maybe better than being forced out but not if the property deteriorates. If the cap is too high, it doesn't provide meaningful stability or a planning horizon for tenants. If it's in the right place, it gives renters reasonable time to adjust to market changes. Again, IMHO, 3% is probably too low, 10% may be too high, somewhere in the middle is nice to have.
Tenant protections setting deposit limits and process for assessing against the deposit seem reasonable to me. Landlords are going to screw tenants out of deposits if they can, regardless of the market realities, because the relationship is over, the renter is busy with other stuff, and the landlord has the money.
Is there any morally valid reason to evict a tenant other than nonpayment of rent? For bad behavior that should be between them and the police, not you.
I'm sure there's lots, but lease says no X, tenant insits on doing X seems like a reasonable thing to evict about, but not a reasonable thing to ask the police to adjudicate.
At least as long as 'no X' is a reasonably moral thing to restrict. So no pets, no working on cars in the parking lot, no smoking, no loud noises/no more than N police noise complaints, etc. At least my moral code allows one to form a contract that restricts such thing and that when one party refuses to honor a (reasonable) contract, the other party should be able to require the breach be mended or the contract be ended, and that some breaches can't be mended.
Some things that might not be stated in a lease but would also be reasonable to evict for could include no interfering in the quiet enjoyment rights of neighbors, no storing of dangerous goods, no causing dangerous/unsafe situations.
Absolutely. The law with respect to behavior has almost no force within multi-tenant buildings. It is primarily subject to contract law. The police have no power there. Tenants that repeatedly violate the contractual rights of other tenants have few remedies beyond eviction.
Not all bad behavior meets the threshold of police intervention.
Here's a nearly-strawman-but-definitionally-valid example: a landlord may want to remove a tenant who's being unusually hard on the place and accelerating the wear-and-tear. Could be serious enough that paying the tenant to go away would be cheaper than the cost to remediate the damage accrued over the length of the contract.
That assumes that everyone who wants housing can afford to buy it rather than rent it. It also assumes that everyone who wants housing even wants to buy it.
"Sorry bud, I know you just wanted a place to live while you went to college in this city but if you're not ready to buy a house we don't want you here"
If all the properties owned by career landlords were returned to be sold, the value (and price) of property would go down.
This idea that ubiquitous rental (which is normally at obscene prices any way) makes cities more accessible to live in is nonsense. Landlords are creating the problem that they state they are fixing
This is true, the prices do drop. In Amsterdam at least it meant low income renters getting evicted so that people with roughly 2x their income could buy their former homes. https://www.youtube.com/watch?v=t05cFv02pzY is an interesting discussion of this.
There's an economic floor for the price of housing: the amortized cost of the building and its maintenance, plus taxes and overhead imposed by governments, utilities, mortgages, etc.
In other words: even in a plentiful housing market, there will always be someone who struggles to pay rent (including transiently), because a rational housing market can't offer $0 rents. Tenant protection laws exist to protect that person from a landlord who would otherwise be incentivized to throw them onto the street.
Yeah… these laws for private landlords to subsidize housing for other families.
If you only have 1 rental property and your tenant doesn’t pay, that’s a 100% loss of revenue while your family personally bears the cost of supporting this other family.
Whereas corporate landlords can absorb these losses by raising rents on 100 doors to cover the families that refuse to pay
So it's better that huge corporate landlords own all the rentable housing stock?
You seem to be assuming that if we, say, just made renting illegal, everyone would a) want to own a home, and b) have the finances necessary to do so. That's not the case.
If grandma pays 90% less taxes than me (prop13), where is the leverage?
If grandma bought the the house in 1990 and property values have risen faster than wages and inflation, where is the leverage?
If grandma is under insured, either due to the insurance company not updating coverages with inflation or no insurance bc she isn’t required to, where is the leverage?
sure because a property owner is going to not rent out a property and just take the month on month hit for having an empty property. They'll either rent it or sell it.
There is a middle ground, just need to find that point.
Apparently you haven't been paying attention to what's happening in the rental market. Landlords in cities with strong tenant protection laws will absolutely leave a unit vacant for months until they find someone with a high income ratio and credit score. This leaves poorer people stuck with no options.
Do you have evidence? There is evidence that RealPage software illegally coordinated (maybe coordinates) landlords in keeping units off the market in order to reduce demand and increase prices for everyone.
In SF and Seattle during hiring booms, a lot of young workers move to the city with no social connections, so they start their new life in hacker houses to kickstart their friend group.
I’ve known acquaintances who got de facto evicted without warning just because their landlord decided to make a few extra bucks. Were that to happen to me, I would not be able to rent in my current city at all due to the recent influx of wealthy tech workers. (Read: extremely high rents with ridiculous income requirements.) Fortunately, my city has robust tenant protections and rent control, so I don’t have to live my life in fear of ending up on the curb. Some people see that as a bad thing; I guess they think I should save up a few million dollars to buy a condo or abandon my community and move to the boonies.
This would be less of an issue with more housing stock, but that takes decades to build. As a city resident inconveniently living in the present, that does not help me much.
Obviously, I’d never vote for a politician who would make it easier for a landlord to evict me arbitrarily. And I’d eagerly vote for the same protections for any other renter.
I think you’re leaving details out of your story. If the landlord wants to make a few bucks, then they keep their good tenants (lowers vacancy rate, keeps repairs low, etc).
It’s pretty simple. There’s a tech boom or similar, a bunch of rich workers move in, rents go up. Landlord spikes rent by 30% to take advantage. You can see this happening in r/sanfrancisco today, for non-rent-controlled units.
Sf is kinda a mess. Sf’s rent control also means tenants can’t leave (locking up more housing, reducing supply, forcing everyone else to pay more), thus continue to discourage rent controlled tenants from moving since moving means even higher prices.
The property tax situation in SF is a mess.
SF also requires a lot of expensive regulations (earthquake proofing, renovation permits, rising California insurance costs, etc).
Also… the unfortunate reality is there is only so much space and the capital markets determine who gets to live where. If you’re not able to keep up in a city, then there are better places for you.
> Sf’s rent control also means tenants can’t leave
They have exactly as much freedom to leave as they would without rent control. They _choose_ to stay because rent control has made it advantageous to stay. The way you phrased it implies you're suggesting this is a bad thing for renters but that is strictly a positive. Without rent control they'd have zero affordable options, with rent control they have 1 affordable option. Woe to the inhabitants of rent controlled apartments with their golden handcuffs.
Obviously it does not drive up the rent price of the person who is paying less rent. That's the whole point. The residents of SF have voted to prevent you from taking their apartments, so if you don't want to bid very competitively for an already empty apartment, you'll just have to take an apartment somewhere else.
> Sf’s rent control also means tenants can’t leave (locking up more housing, reducing supply, forcing everyone else to pay more), thus continue to discourage rent controlled tenants from moving since moving means even higher prices.
This is disingenuous. In the absence of rent control (or prop 13 for property owners) you famously get a situation where tenants ALSO can't afford to leave... but have to anyway.
Why should anyone be forced to leave just because someone richer wants to move in?
You don't have to support someone being unable to evict people who don't pay to believe that there should be limits on how much landlords (or the state, in the case of prop 13) should be able to force current residents to leave just to make a quick buck.
> Why should anyone be forced to leave just because someone richer wants to move in?
This triggers my other frustration: empty nesters. They continue to live in great 3-4 bedroom homes that are amazing to raise a family in (near job centers, plenty of bedrooms, tight community, near good schools). This forces people like myself to spend 85+ minutes in a car (away from my family, friends etc) everyday while I drive past all these amazing empty homes.
Yes, if you’re not using the space efficiently, GTFO and let people have the space! Let dad have more time with his kids. Let the tech bro that created 10m jobs and have more time with his wife and kid. Let people burn less fossil fuels to get to work.
Rent-controlled/prop13 grandma needs to find another place to live for the next generation.
Someone living alone in a rent controlled unit paying below market rates is much “richer” than a family of 4 paying 5x more cramped into a 2 bedroom apartment.
Many of those grandmas would love to move to a smaller house or apartment in their neighborhood, but paradoxically cannot afford to do so. Blame the system, not the individual who has to make rational decisions for themselves within it.
It sounds like you're living in a badly governed city. Have you considered voting for politicians with an abundance agenda? Or moving to a city with more intelligent housing policies such as Dallas?
NIMBYism and single-family zoning are alive and thriving in Dallas; what Dallas has is this thing called a huge-fucking-flat-prairie all around it that means Frisco, Addison, etc, have been able to add to the low-density car-centric sprawl and help keep prices down some.
(But even then, plenty of Dallas residents have been upset in the past decade by what happens to rental prices when a bunch of higher-income folks move to town!)
One wonders why the people who don't want to have to leave a city like San Fransisco just cause some other people have more money than them and want to raise their rents out of their reach are the ones who should move to Texas. Why shouldn't the would-be newcomers just be the ones go to all those cookie-cutter new developments?
If you jumped back in time 20 years ago and were able to ensure that YCombinator, OpenAI, Anthropic, Salesforce, and other high-paper-valuation companies, and they all had imported their from-out-of-town high-income-or-equity-leveraging employees to McKinney, Texas, not much materially would prevent those companies from still doing what they did. But people who already lived in SF or on the peninsula but didn't own much land there would have a materially better standard of living due to their costs not running away from their existing incomes. And the Texas burbs happily would've built a shit-ton of houses and apartments for the startup workers, because of the aforementioned giant quantities of near-empty land. Greenfield businesses for greenfield real-estate. Much better fit than force-transforming cities.
> One wonders why the people who don't want to have to leave a city like San Fransisco just cause some other people have more money than them and want to raise their rents out of their reach are the ones who should move to Texas. Why shouldn't the would-be newcomers just be the ones go to all those cookie-cutter new developments?
Because my money should be just as good as yours? Why should you get a huge discount just because of where you were lucky to be born? I'm not asking for a better deal than you, just fair competition between equals.
> And the Texas burbs happily would've built a shit-ton of houses and apartments for the startup workers, because of the aforementioned giant quantities of near-empty land.
For first 100, sure. Then they'd complain about the newcomers changing the character of the place and ban new buildings. The same thing happens everywhere, you can't route around it by starting your own new city because as soon as you've built any kind of community you have the same NIMBY problems as every other city.
> I guess they think I should save up a few million dollars to buy a condo or abandon my community and move to the boonies.
If you can't afford to live in your city, what distinguishes you from the people in the boonies? Why should they be relegated to the boonies while you successfully game the system?
I can afford to live in my city. I’m living in it right now! The nice thing is that I don’t get pushed out by arbitrary economic fluctuations completely out of my control.
Why shouldn't everyone get everything for free that can be provided for free? Forcing other people to pay a cost because you paid a cost is just sour grapes.
It can’t be provide for free, that’s the point. Mitigating risks has costs that you are ignoring. Those costs aren’t cheap and someone has to pay for them.
> If only we could all get free protection from economic forces we don't control.
> That kind of insurance is usually pretty expensive. Why should you get it for free?
Protecting its constituents from the whims of out-of-town money seems like an excellent purpose for a local government. Especially if some of that money wants to move in so badly that it can be very profitably taxed!
Why shouldn't local government try to serve its constituents like that?
Because I'm rich, and I want to live in SF dagnabbit, and how dare the (checks notes) existing residents of SF vote to block me from taking one of their apartments that I obviously deserve to live in more than they do because I'm rich?
By that logic, we should let the Ohlone tribes underbid all existing residents. They too are just rich assholes who displaced those that were rightfully there before them.
One, we vote for it, and there's far more renters out there than owners. Sorry.
Two, there are many "free protections" that are taken for granted at our stage of civilizational development. Should fire departments be privatized? Police? I'd argue that housing security is even more important than those. We bear the costs together so that our lives are collectively better.
Three, your entire framing is kind of bananas. Rent control is neither insurance nor expensive, but a cap on landlord profits. If anything, it's unbounded profiteering of basic necessities that's actually "expensive."
> there are many "free protections" that are taken for granted at our stage of civilizational development. Should fire departments be privatized? Police? I'd argue that housing security is even more important than those. We bear the costs together so that our lives are collectively better.
But we don't. Everyone who works in the city is paying the costs, while the lucky few who moved in decades ago are the only ones who get the benefit. If everyone got to pay the same level of rent then I'd maybe support it, but there's nothing "collective" about the people who got here quicker protecting themselves while pulling the ladder up behind them.
> Three, your entire framing is kind of bananas. Rent control is neither insurance nor expensive, but a cap on landlord profits. If anything, it's unbounded profiteering of basic necessities that's actually "expensive."
It's got nothing to do with profit; if there are x homes and y>x people who want to live in them, either you give them to the x highest bidders, or you unfairly screw some people over. Rent control is one form of option B (there are others).
> If everyone got to pay the same level of rent then I'd maybe support it, but there's nothing "collective" about the people who got here quicker protecting themselves while pulling the ladder up behind them.
I'm very sympathetic to this sort of framing, but I don't think that's happening here. Or if it is, then pulling up the ladder is a pretty reasonable, rational thing to do when you're protecting against other people climbing that ladder and throwing you back down to the ground.
I moved to my city less than three years ago, not ten. I was not “lucky” to get my rent-controlled apartment: just had some foresight and was diligent in my search. My rent is high, but not as egregious as what the recent AI migrants are paying. (New upstairs neighbors are literally paying $2000/m more than we are for the same floor plan.) Thankfully, I have no fear of getting kicked out of my home due to a sudden rent spike, so I can focus on building a life.
None of this seems egregious to me. Yes, existing residents are prioritized over new residents. This feels like an obvious tradeoff if you want to maintain community and QoL. The alternative is prioritizing the rich — landlords and wealthy renters alike. I do not want to live in a city where money has the final say.
> The only effective way to protect tenants is to set public policies that encourage new housing development
Which the local landowning population promptly block with NIMBY tactics. Have you wondered if that has any impact? Not everything is some progressive boogeyman.
I have friends and coworkers that want to have rental properties, and I advise them it's not worth it.
I don't want to be in a position where I have to pay more to fix damages than I collectected in rent if I accidentally rent to deadbeats. Or in a position where I have to provide services to someone not paying me.
One of those friends has parents that rented out their old house to deadbeats at the top of the housing market instead of selling it. Those deadbeats have been nothing but trouble and yet my friend still wants to be a landlord.
Somehow the idea of owning rental properties became a pervasive notion in the U.S.
Wage theft is the number one form of theft in the USA at around $15 billion. Hopefully you advised your friends to avoid working for wages as that is the number one way to be ripped off by deadbeats in the USA.
Somehow the idea of working for wages became a pervasive notion in the U.S.
This form of insurance is exceeding expensive and exceedingly rare. Large buildings self-insure (by having a ton of doors) and small landlords don't want to pay it.
> especially in these large cities with kooky renter protections that make it nearly impossible to evict someone
The problem is that there will always be more voting renters than voting landlords. So in a purely democratic system, policies which favor renters at the expense of landlords will always be supported.
And that said, some renter protections are definitely needed, because there is a subset of landlords that engage in flat out illegal behavior.
Deposit withholding, making illegal demands, illegal renter selection practices, etc.
Imho, that tends to be concentrated in the "1-5 unit" landlord range, because those landlords are usually (a) not lawyers & (b) treat their properties like pets instead of a business.
> The problem is that there will always be more voting renters than voting landlords. So in a purely democratic system, policies which favor renters at the expense of landlords will always be supported.
I don’t know about that… the voting landlords (NIMBYs) sure make it a point to reduce development “to preserve their neighborhood character”.
You're conflating landlords with property owners as a whole. There are a lot more people who own and live in their home than there are landlords. Homeowners are less likely to favor pro-landlord legislation than landlords themselves, and many may even strongly support pro-renter legislation (like myself, though I agree some of the pro-renter legislation certainly goes too far).
The NIMBY "character of the neighborhood" phenomenon has nothing to do with landlords; that's a homeowner thing.
Landlords might be anti-development because a constrained housing supply means higher rents, but that's something else entirely. And if NIMBY homeowners magically stopped being NIMBYs tomorrow, we wouldn't even bother talking about NIMBYs anymore, because NIMBY landlords wouldn't have enough political power to matter.
The way to handle this, which no one seems to be willing to face, is to make laws that are not wealth-neutral. If you are a mom-and-pop landlord (with a relatively low net worth), your should have more leeway in dealing with tenants. If you are a large landlord, you should have very little. Couple this with ruinous penalties (e.g., full forfeiture) for attempting to hide the true beneficial ownership of the property.
In many locations, this exists in practice - especially if you rent parts of a building that you reside in (one half of a duplex or 1/4th of a quadplex, etc).
In some cases, anti-discrimination laws don't even apply.
The question that many do not want to think about. We (as a society (referring to all Western Liberalism, not just the US)) are so thoroughly convinced that Liberal Democracy is the End of History, and it's the 'flawed but best,' as many say, but refuse to imagine something better.
It's puzzling that a system that is supposed to reward creativity and genius like capitalism limits it's inhabitants in their imagination when it comes to how one might structure society.
I don't claim to have the answer, and _no,_ my issues with Liberal Democracy/Capitalism don't mean I'm a communist / socialist / thing-people-don't-like.
It's not Liberal Democracy that is the problem but a society where all of the slack has been optimized out, every extraction maximized, every infraction forever a scarlet letter on an individual, zero stability but constant crisis inflicted on individuals. There is no room in modern day America for people in the margins. Society needs to make a place for them and a path out of constant crisis, or the homeless problem will continue to grow.
Another hidden issue in the USA is many households are dependent on contributing income from a retired/disabled/working past retirement age elderly parent/family member. Those people are going to start passing in mass, and a lot of households will become even less resilient.
What would you like us to imagine? So far everything that we've tried at scale other than liberal democracy and capitalism has inevitably led to war, famine, and genocide. Western liberalism appears to be the only system that empirically works. Some would claim that "socialism with Chinese characteristics" works better, but if you look below the surface prosperity in first-tier cities the actual economic situation is rather grim and the human rights situation is horrific.
Make an argument, beyond one city (if it's true there - Singapore might be better off, on some of the best real estate in the world, with free elections)? All the most free, wealthy, safe, creative, innovative societies in the world are democratic.
And on what basis does some dictator get to tell others what to do? OK, I am the dictator and I'm telling you to give me 10% of your income and never post this nonsense in HN again. :)
There are a lot of values there that.you're presenting as though "this is what society should be" when it's actually "this is what liberal democracy thinks society should be". So obviously we have a foregone conclusion.
Plenty of societies happily trade away one or more of those values for other values.
That's not an argument: You don't specify which values, don't address my argument, and just repeat an old trope of dictators and their apologists with no support.
> Plenty of societies happily trade away one or more of those values for other values.
Which ones? Let's hear some evidence.
People around the world strongly embrace and defend their freedom, including self-determination; the idea that it's not universal (in any meaningful sense) has little support. It's embraced wherever people have the opportunity in Europe and N. America, in East Asia, in China (Taiwan, and also Hong Kong until it was taken from them), S. America, SE Asia, South Asia, a variety of places in Africa, ... you can see the mass protests in Iran, the Arab Spring, etc.
And rationally, again, why should you or anyone else tell me what to do? On that basis, why can't I just as well tell you or them what to do?
Human rights' universality is essential - without it, it's just people fighting for power. That's why it's so important, and that's why those who want to control others try to attack the universality.
Democracy isn't freedom. It's quite easily possible for a democracy to be non-free (many current examples) or for a non-democracy to be free (not as many).
If everything but liberal democracy and capitalism lead to war, famine, and genocide, and we're currently trying capitalism and it's not working, then maybe it's time to try liberal democracy
In my city, and I assume many others, there's an informal landlord's group that shares lists of problem tenants to avoid renting to. While problematic, I wonder if it's made any impact.
Usually this is handled with credit reports right? It’s only when the state forbids landlords from demanding credit reports that informal networks are necessary.
In general as a tenant you can only get away with not paying rent once (until eviction happens, no one will ever rent to you again without federal or state assurances), and as a landlord you will only skip the credit report requirement once (because your first tenant is going to be a deadbeat who screw’s you).
In cities with excessive tenant protection laws, sometimes landlords will negotiate agreements with deadbeat tenants in which the tenant agrees to leave and the landlord doesn't report anything to the credit bureaus.
There's a limit to every city, and just building new infrastructure won't solve everything. It always lags behind demand and there are space constraints, budget constraints and countless other limitations.
At the same time, expectations keep rising for everyone (myself included): not wanting to spend one or two hours commuting to work, not wanting to live 45 minutes away from a large supermarket and not wanting to spend three hours or more just to meet friends or family among others. The problem is that it simply doesn't scale, and every country/city faces different challenges so there is no single universal solution.
I'm afraid the real discussion can't happen outside of small circles at this time because it'd involve highly controversial topics that much of the population in Western democracies (can only talk about what I know) isn't ready to confront. We have deeply ingrained ideas that are difficult to challenge so instead we'll probably watch cities fully collapse before anything.
i occasionally come across some of the forums and online groups of landlords and the things they have to deal with, particularly in cities with strong protections for the tenants and its interesting to watch the perspectives.
on one hand i feel for some of the landlords who have to deal with some of the very real slacks who go out of their way to be difficult tenants.
on the other we’re talking about homes, by this i mean to stress home over investment. i think we’ve made a terrible mistake in incentivizing people to use homes as an investment. it should be difficult to evict someone from their home, and it should be risky and a pain in the ass to use someone else’s home as an investment.
i feel bad for _some_ of the landlords but from a larger societal perspective we’re going to look back at incentivizing so many people to invest as a landlord as a massive mistake.
The landlord can divest themselves of the property. It's also ok if people lose money on investments. I don't think you have to feel especially bad for landlords.
> It's also ok if people lose money on investments.
The more likely it is for landlords to lose money on the housing provided, the more rents will go up to account for that risk premium. It's no different than risk-return calculations for any other investments such as stocks.
> We have to consider what the unintended consequences are of public policies or practices where there are no immediate consequences for someone who falls behind on rent
> Many [landlords] say they don’t actually intend to evict anyone, but that filing these cases is the most expedient way to get emergency rental aid from the city.
While that is certainly true, it's a very narrow view disconnected from the reasons for the policies. The most likely explanation for more people not paying their rent is that even fixed rents have become increasingly unaffordable because other costs have risen faster than wages. So yes, people are "choosing" not to pay rent because the consequences of not paying the rent lag substantially behind the consequences of not eating or buying gas. But it's an absolutely rational decision. FTA:
>...plenty of economic indicators suggest worsening financial duress for people already struggling. Costs are going up faster than wages, and inflation that took hold after the pandemic has proven painfully persistent.
Now that i saw the framing, i am looking differently on the discussion here. The smalles troublemakers are more news worthy than broad economic factors behind us all, so you dumb down your headline...
Social housing in the West is rewarding the bad habits of the people under the pretext that they need help. Every social housing place a like wound in the city and normal residents run away from those areas. People revolt when they hear of any plans to setu0 a social housing building in their locality.
Why this happens? That's because, the housing problem give the opposition a weapon to use against the ruling party, constantly hitting out and winning the sympathy of people. The incumbent administration has no other choice except pouring money into social housing and show that they are doing something to address the issue. No one cares about the actual fall out of this philosophy.
the article said asset managers claimed rent collections went from 94% to 89% - wow such a drop! they fail to highlight that these assets are theirs to own indefinitely!
All slack has been removed from society. All pricing has been maximized. Every interaction capitalized. Every point of extraction extracted from.
People living in these situations now live from crisis to crisis. Not paying rent/dealing with the consequences is just another on the list. At some point people just become numb. Modern society at the peripherals is not sustainable. There will always be people in the peripherals, but society is now structured to require middle class type stability as the bottom baseline for an individual to survive.
Why isn't it automated yet? You delay your rent and your door key stops working.
Also perhaps there should be a new field for startups (yes i'm aware of 'proptech' but there has to be more than that), that will collect dirt on tenants to threaten them with legal consequences unless they pay.
Every day I doubt why I even bother reading this site. Then anovikov reminds me why. It's so I can keep on top of the creativity/depravity my fellow engineers are capable of.
(1) - what's horrible? renting out flats is a business. not paying the bills shouldn't be tolerated, ideally shouldn't be technically possible.
(2) is negated very simply - have both old door key AND digital security key which auto closes if there are unpaid bills for say more than 5 business days.
and in cyberpunk 2077 there are neon signs above each apartment door indicating rent payment status, gotta bring public shaming into it too. This is the future our loyal soldiers for capitalism fight for on this platform in every thread lol.
People can't afford to live and food comes before paying your landlord? Economy is fucked right now. Income inequality pushes any gains into the hands of the wealthy.
And frankly, more and more people are willing to stuff their landlord if they feel their landlord isn't holding up their end of the deal.
For those looking for the actual data. It's from 2024 - says nothing about the current situation.
* ~37K affordable housing units (baseline) across ~400 projects * 89% rent collection rate (down from 90.6% in 2023) * That's 600 units that went 'delinquent' in 2024 - assuming a $24K 'base' rent (just a guess) that's $15M in lost rent. * Deeply troubled projects (that can't survive without this rent) are at 11% - seems like the inverse. * Cumulative arrears (unpaid rent) of $500M
Here's the problem: * If no one had to pay, no one would. * We've tried free housing before - it suffered tragedy of the commons. Not paying means no ownership means subjugation to the worst actions of the worst members of society. * The projects fall into disrepair, there's no way to bring them back, because they won't be maintained.
Landlords aren't a great solution to the problem to be sure. They can be greedy and heartless.
The bigger problem is the bid up of asset prices - aka private equity and class warfare. As soon as you switch (from renting to owning) your incentives immediately shift.
There doesn't actually seem to be a way around this. Taxing to spend on rent ironically makes the problem worse because you just transfer the money into the cash flows of the owners.
Anyone thinking there's a simple solution to this problem hasn't spent enough time with the problem.
The solution is pretty simple: build and unreasonable amount of housing. And entirely new cities. America has enough land. We could build new infrastructure, give people lots of land or build houses like we did in the 40s and 50s. Of the price of a house was brought down to 1x the annual salary of the median individual income some of these problems wouldn’t exist. We need to flood the system with investment and inventory.
> The solution is pretty simple: build and unreasonable amount of housing. And entirely new cities.
So it is not simple. "Just build more" always comes up in those discussions, and while it does help (and has been proven to help), it is not the definite answer for the housing issues.
Build a new city from the ground up with a bunch of cheap modern housing, walkable and all modern goodies and ... nobody will move. People don't move just because housing is cheap. Actually many people are willing to spend a significant amount of their income to live in specific places. We move to have a job, to build a career, to be close to friends and family, to have better access to entertainment and activities, ...
This is why most developed country experience rural flight. The housing crisis is (mostly) a big city problem. You can usually find extremely cheap housing if you go deep in the countryside. And building is also cheaper (the price of the land is less, there is less permits issues, etc).
And for big cities, "build more" is way more challenging. Ground space is limited, so one solution is to build more vertical, but it is costly and has its own limitation. Spreading may cause issue with water management and require big investment in a public transport infrastructure if you don't want to have a nightmare traffic. Pollution can be a very big issue, etc. And that's for all the non-political issues. The political side of things can get very messy, very quickly.
If there was a simple solution, every big city in the world would have done it by now.
> Build a new city from the ground up with a bunch of cheap modern housing, walkable and all modern goodies and ... nobody will move.
If you build a city full of empty buildings in a place with minimal existing population like the Alaskan wilderness then obviously. But what if you double the housing stock in all the existing cities where people want to live?
> Ground space is limited, so one solution is to build more vertical, but it is costly and has its own limitation.
Extremely tall buildings can get pretty expensive, but moderate height buildings (e.g. five stories) have similar per-unit construction costs to single family homes. Meanwhile now count the number of places you can draw a 100 mile radius where the median height of the existing buildings is even that tall. It might literally be nowhere in the US.
Notice also the extent to which density can thwart the scarcity of land. You put a five story building with four units per story on a plot of land instead of a single family home and the contribution per unit of the cost of land has gone down by 95%.
It would of course be a functioning state's responsibility to plan urban/city development and economic incentives to move there. Regarding the ownership vs renter housing debate: I think Singapore may be an excellent example of a state doing it's duty: affordable state-owned housing and people are distributed per housing per the national demographics so you also build social coherence vs ghetto-fication.
Singapore is a special case, since it doesn't really have any rural areas.
America already has plenty of cities that aren't doing very well, and aren't getting migration, so new cities aren't going to help. There's plenty of cheap housing inventory in the US, just not in the places where the jobs are.
America doesn't need new cities. There is an unbelievable amount of space wasted within every city and any urban planner can show you. Development policy in the 40s and 50s was backward and we continue to suffer the consequences today.
Absolutely, but it's easier to build quality mixed use development and walkable, bikable neighbourhoods when you don't have thousands of NIMBYs screaming down every proposal.
Pick your favorite place on the planet. Then tell me if 8 billion people can live there, and would it be the same place if they did?
I know the answer to both of these questions, and so do you.
"This solution won't work in <ludicrously overextended case>, therefore let's do nothing!" -- common software engineering requirements management technique
... I'm talking about building new cities, which seems like the exact opposite of what you're describing?
Anyway, as far what happens when you make renting impossible (or just de facto not financially realistic), in Amsterdam it led to a lot of rentals being sold. The people buying had roughly 2x the income of those renting, on average. So, I guess that's a good thing, if your goal is to evict lower income renters so people can buy a place more cheaply. https://www.youtube.com/watch?v=t05cFv02pzY discusses this at length.
I live in one of the most populous metropolitan areas on the planet because it's the best place to live in the world. Increasing density and population is working great so far; maybe it won't scale all the way to 8 billion, but as and when there's a problem we'll deal with it.
See Detroit mid-2010s for why massive overbuilding isn't a good strategy here.
That’s a bad example. Detroit isn’t an example of over building it’s an example of eroding the demand across the entire economy by outsourcing jobs. There is a big difference between a city with full employment with a robust consumer base that happens to have a ton of housing hit the market and one that has it’s entire bedrock industry carved into pieces over several generations.
If you want a valid example look at Austin Texas or Japan. Housing inventory growth in a robust economy leads to….wait for it….rent decreases.
Austin sure has become so much more affordable ... Wait!
The rent in Austin is 22% lower than it was 3 years ago.
Can you explain more? What happened in Detroit in the mid 2010s, how did itreverse course after that?
Detroit was the hub of the auto industry. Outsourcing and foreign competition hollowed out the central city (which deliberately didn't have public transit) and left gigantic abandoned houses and skyscrapers throughout.
There has been massive public investment and popular support to cause a revival of sorts in the city and is a success story.
Go look at some photos from like 2010-2014.
This happened throughout North Carolina where I live when textiles and furniture manufacturing was off shored. I assure you it wasn’t over building that caused the same outcome. It’s almost like the is an alternate explanation that is the common thread. What could it be?
Such short term issues from massive economic collapse suggests building more housing works.
How was the work outsourced around that timeframe? Do they no longer have an auto-industry at all in Detroit, or is it just greatly reduced?
It happened over a longer period obviously, and what happened is the US adopted a failed industrial policy that saw our core manufacturing base shipped to China for the benefit of Wall Street and the financial sector.
Globalization wasn't a loss for all of America - the benefit of shipping manufacturing overseas was that the resulting imports were cheaper than producing domestically. After all if they weren't, people would've preferred to buy domestic. So it was a net win for the consumer via cheaper goods, but came at the expense of Detroit, Pittsburgh and other "rust belt" cities & communities.
We're still grappling with the consequences. We should've invested in transitioning those workers to comparable or better jobs but the ball got completely dropped on that.
It wasn’t a net win for the consumer. The consumer is now much worse off than before and our country is weaker.
It was just a mistake to allow ourselves to be ruled by the financial sector.
> We've tried free housing before - it suffered tragedy of the commons. Not paying means no ownership means subjugation to the worst actions of the worst members of society
We tried cramming people from generational poverty into one place and it didn't go super great, therefore public housing as a concept must be the failure, and not our hilariously bad implementation?
Singapore, Austria, Finland, and even a number of mixed income public housing projects in the US have actually done quite well. The narrative that it's all inevitably going to turn into the worst examples is pretty worn out.
> The bigger problem is the bid up of asset prices - aka private equity and class warfare.
This is definitely true: housing can either be affordable or it can be a safe investment, never both. Really private equity moving in on the safe investment is a symptom of the problem: regulatory capture by the landed gentry resulting in strangulation of production which benefits a small group at the expense of the greater public.
Public housing isn’t actually free in the countries you listed. It’s subsidized, but the people who live there still have to pay. The affordable housing units in New York are also subsidized. The question is what do we do if people stop paying even the subsidized rent?
> The question is what do we do if people stop paying even the subsidized rent?
If they stop because they actually can't pay it, then we should pay it for them. Another homeless person on the street makes us all less safe and less healthy, and tax dollars going toward keeping them housed is a good use of that money.
If they stop paying because they just don't feel like it, you evict them.
Singapore doesn’t have crime like the U.S. There is also no free public housing. You still must work and the housing is subsidised. But not free.
Why bother with such details? Class warfare is right, and details are details. /sarcasm
For example mixed income housing is really nice for “us” that have been in generational poverty. For “them” it is just living with signals of alcohol abuse, domestic abuse and more. All while their children get a good front seat into “empowerment”.
With sarcasm over, details matter, complexity matters, social assistance matters, a contingency plan for total failure to rehabilitate some people matters.
Many people would benefit from the Northern European style of institutionalisation where if incarcerated people would need to go to isolated communities and learn to buy groceries, cook a meal take care of personal hygiene (in Sweden they literally have prison islands where inmates have houses and must live as they would in the outside world. Then progressively move to temporary shelters to get their footing and then be released. If need be put those people in the countryside.
As a personal experience: Many German youths get sent to the middle of Portugal when their environment leads them astray. In the countryside there is a publicly funded host family or community to receive them and they have to learn trade jobs like being a painter or a plumber and get pushed into an normalised environment. There is no access to drugs as well in the middle of nowhere. There is alcohol but in the next morning there is work to do and people who are waiting for you. I met some of those youths when I was young and it always struck me that a good solution for failed communities in urban environments was to break them apart and scatter them into other more rural communities in such small units (family at most) that their habits would not impact the locals and that the habits could not be fulfilled as a matter of fact. Where are you going to hang out at night in a village of 1k? There is housing but you likely need to repair it; the locals will lend you a hand but they will exert peer pressure for you to normalise.
There is no need for class warfare. But there needs to be a warfare against antisocial self destruction behaviours.
Singapore system won't work in USA cities. Their town councils are near scholars level. Quite a few of them doctorate. They are pretty much selected on 2 criteria, merit and perceived likability with accountabilities evaluated both by government and locals citizens. American leaders are selected based on sound bites with zero accountability to citizens for maybe 2 years to 4 years. They do accountable to mega donors which almost always work against for the good of the public. Singapore also have world class city planners that entire America have never experienced or seen before. Heck even China look up to Singapore during 80s and 90s for advice. And the quality of people going to USA in the last 10 years are very low. Look at Singapore Amos going there. Meanwhile hundreds of American engineers migrated to Russia and China.
It only works in Singapore because there’s too little land. There is too little options. HDBs are capped value. While Condos are quite expensive in comparison, and you cannot own both. Singapore system for housing would be hard to replicate anywhere else without government stealing everything off the citizens and disallowing private ownership of land.
> We tried cramming people from generational poverty into one place and it didn't go super great, therefore public housing as a concept must be the failure, and not our hilariously bad implementation?
Well-stated! Yes, defective implementations with negative outcomes should not be used to make overly broad or even grossly incorrect assertions about human nature.
The thing that goes wrong again and again and again with public and low cost housing is that they build housing, and nothing else.
Stick a bunch of people in a tower in a field with no entertainment, no work nearby, building rubble surrounding their environment, no maintenance happening, no follow through on planned facilities, and the consequences are absolutely 100% predictable. Literally last night I watched a pair of bbc documentaries about a new estate, one from when it was new in the mid 60s, one from the late 70s. The residents are there in the 60’s, going “well it’s a pain having to walk all the way up but we trust that the lifts will be installed soon, and we’re looking forwards to the leisure centre” - fast forward 15 years, still no lifts, no leisure centres, and surprise surprise the kids are setting fire to cars to have something to do. If government won’t uphold the social contract, why should citizens?
The implementation is entirely the problem, and unfortunately few seem to realise that it can be done well. You can’t just make containers for humans and expect that to solve everything.
You're seeing the next version of this - cooked up by the smartest public policy people - fail in real time. That's what this article is about.
89% of these projects are - in fact - doing well. But that number is decreasing. The net result is less supply of public housing in one of the richest states in the entire world.
I'm not sure what your proposal is?
Cities have to truly compete with private rent-seekers for it to work.
In Vienna they are still building state of the art for that reason:
https://www.theguardian.com/lifeandstyle/2024/jan/10/the-soc...
Rents are going down in Austin, Texas despite an increasing population and lots of landlords.
Run it down, swoop in low, build it up, sell out high, repeat.
NY is back in the first phase of a realestate cycle. As the wheel turns ...
I don't understand why we can't just copy another country's housing strategy. There are many countries in the world where housing is affordable, relatively high quality, and the homelessness rate is low. What are we doing that makes this problem so seemingly intractable? Why is our approach to public housing seemingly worse than any other approach in history?
Far fewer than you'd think: The vast majority of Europe is in the same boat as the US.
Whenever there's value in agglomeration (ie, all the time), the value of well placed properties just skyrockets, because growth is only going to make that land better. That's why a common recommendation is to up the tax of land as to make speculation with valuable property a bad investment: It's already price like an auction, so higher taxes cannot increase rent prices. The problem is political, as countries with housing problems have a whole lot of individuals have a big percentage of their net worth in housing. Big tax increases would make their property values drop, and they'd be quite upset. So it solves the problem while losing elections.
Instead, governments are happy providing tax advantages to existing residents, in practice making prices go up even faster.
What makes the problem intractable is that we have a system where for a huge chuck of the country your retirement is based on housing prices appreciating. It's clear if you directly own a home but even if you don't lots of the places you park your money to watch it grow are ultimately investing/speculating on real estate.
Some might call it housing asset based welfare. Even if you don't like that mouthful another simple example is the University of California putting 4 billion into Blackstone's REIT with "a minimum 11.25% annualized net return through January 2028." That REIT is 90% rentals. So probably at least a few people will feel the squeeze from it.
https://www.reuters.com/business/finance/university-californ...
https://link.springer.com/article/10.1007/s10901-009-9177-6
It's the other way round:) Europe is salivating at the American real estate market. Some European countries don't have capital gains tax on real estate and real estate is the only investment vehicle without this tax. The only country where real estate prices haven't skyrocket looks to be Finland but their general situation is very specific and it's hard to say whether it's by design or by accident.
Social housing in Europe while exists, distribution of it is extremely corrupted process. Applying and waiting will give you something in 5 years or never, you'll know in 5 years. You have to be young couple both employed with perfect portfolio, or whatever the role model in that time and location is. Young couples both employed in desirable city basically don't exist anymore, even if you are after two rounds of waiting suddenly you are not a young couple anymore:) Usually you have to know someone and give a bribe.
You mean like in Sweeden, where you have to wait 20 years for assigned flat?
Europe has no homelesness, because migrants are housed at hotels at great expense!
That's due to moving away from the government ensuring an adequate supply of rental units over the last decades. Intentional free market style policies.
You mean Stockholm. You can buy, wait 20 years, or find a private building owner. But same problem, not building enough.
I mean better than having no assigned flat at all....
A bit of a misnomer. Housing is, actually, extremely affordable across the US - just not in major cities.
You can plunk $10-$20K and get land and a homestead in dozens of states.
Agree with the other comment that overbuilding is a reasonable strategy, but if you look at Detroit downtown (mid 2010s) having an overbuilt downtown is bad too.
It's a hard problem.
Similar things in lots of countries. There are villages in Italy and Spain with near-zero housing prices. The qualifier that needs added is "housing in commute range of jobs".
Stoke on Trent was selling houses for £1 with improvement grants attached! https://www.citymonitor.ai/analysis/stoke-shows-why-selling-...
And of course if 'jobs' becomes 'there is nothing a person can do that can't be more efficiently done by hiring AI more cheaply, plus you get to treat AI completely differently because AI is not a person' that complicates matters very much.
That's actually the same in most countries: the cities where everyone wants to move to (examples from Germany: Berlin, Hamburg, Munich) become unaffordable, and at the same time smaller cities and villages in less desirable areas (e.g. in East Germany, but also in more remote areas of Bavaria) are depopulated - there you can buy a cheap house, but you can't get a job. Remote working would have helped to somewhat alleviate this, but no, now we all have to go back to the office so we can sit there and spend the whole day in Zoom/Slack/Teams calls instead of doing the exact same thing from home...
Well we didn't exactly divvy up either housing or employment rationally, so looking through history without state subsidies and development, we're going to see slums pop up where the jobs are. Or just massive homeless populations I guess.
China managed this quite well with the hukou system, which allegedly is going to be loosened over time, but that seems distinctly unlikely to be understood by the powers that be here in the US.
10k??? Yes because I want to live in east bumfuck in a food desert and drive 40 minutes to the one megamart and where the services barely work and my police/fire/usps is on the next town over 20 miles away.
Did I mention the legions of uneducated anti-Christians who would probably kill me for being queer?
Is charging just enough rent to reasonably mantain the building such a strange prospect?
> The uptick in rental delinquency isn’t new. It started six years ago
It has nothing to do with Mamdani, for those of who don't want to bother to read. Most of this occurred under Eric Adams's watch.
Anecdotally, I do think covid made people a lot more aware of how deeply backlogged the housing courts are. It seems like a lot of people (like the anonymous one in the article) realized they could not pay rent and avoid being actually evicted for quite some time.
This is a recurring theme in city problems: Backlogged courts. Sometimes that's to the benefit of the less fortunate (here), but it also often results in terrible outcomes (see: Kalief Browder).
I think even the benefit for the less fortunate here is at most a short-term one. In the longer one, you need building and renting out shelter to be reasonably profitable, so that people do it.
It's basically the same argument that says rent caps are bad for the renters in the long run.
We don't always have to consider the apparently very fragile and fickle motivations of investors. Social housing can and has worked very well in many cases.
Unfortunately, most housing "investors" are people who bought a home 10-30 years ago and will be furious if they can't sell at a large profit compared to what they bought it for.
Sadly, a lot of places (Netherlands and Ireland come to mind) _discourage_ you from investing in things like stocks, and _encourage_ you to "invest" in a primary residence, making the problem even worse.
Where has it been successful, and what counts as success in that? I genuinely do not know.
It's been exceptionally successful in Singapore, for one.
I currently live in an HDB property in Singapore. It's great.
I'm originally from the Netherlands, which traditionally had a strong social housing sector: regions and cities would have their own housing corporations ('woningbouwcorporaties') tasked with building affordable housing. Those corporations were given government support after 1950 to help with the post-WW2 housing shortage, but were semi-privatized in the mid-90s, and in 2015 their scope was strongly curtailed.
It would be reductive to say that this privatization was the sole cause of the current housing crisis affecting the Netherlands -- rents and housing prices have also increased a lot in Singapore since Covid -- but it probably didn't help.
Singapore doesn’t have social housing. HDB is government built and sold for 99 year lease hold.
You're describing a form of social housing.
No. Because HDBs are not owned by the government.
Primarily Vienna. There's nothing complicated about what Vienna did - other cities just prefer to please billionaires instead of providing services to citizens.
Do you actually know what Vienna did? Because the overwhelming number of people who reference the city basically just repeat a few dubious talking point about restricting rent.
I don't know about restricting rent but they certainly had a progressive tax on high rents, a 1% income tax to fund housing, and then used that to build a ton of high quality social housing with balconies and amenities for all. I also like to think it helped that they slapped a big sign on each to proudly let people know it was their tax dollars at work.
I didn't stay in social housing while I living there but I never once heard people complain about it. They basically just didn't think much about it at all and felt it was a good system and then would ask me why the US only makes it for poor people.
Have a massive empire and then lose it resulting in a capital city with surplus housing?
I mean, to be fair, having your population semi-permanently depleted by two major wars and a fundamental loss of national economic centrality and prestige will help you keep a fixed stock of social housing lasting longer.
Vienna's population has been growing constantly for the last 40 years.
Basically, all of Europe post-WW2. A significant share of new build in the 50s-60s was social housing.
No one absolutely no one considers that to be remotely true. Look at French banlieues, German Plattenbauten or British Councils - they are synonymous with Crime and physical as well as cultural despair.
And while Vienna or Stockholm are often cited as Utopias, the citees often intentionally leave out the negative side effects (ie. Waiting-times of years, housing black markets, etc) that are eventually coming full circle to the thing they were proposed as a solution against. Just with much less transparency.
There have been social housing projects that paint a more nuanced picture, eg Hamburg-Steilshoop, where a giant block (for EU standards) has been erected in the 1970s and was basically divided into three sections: one to be run by existing housing coops, one by owner occupants, and one by the city. Needless to say that those parts run by the city were quickly becoming a prime example of a German „banlieue“ while the other parts became a prime example for those eager to dismiss any criticisms.
This was aggravated by modern city planning with it's separation of function that left these new districts with no third spaces, barely any shops and large spaces of 'no man's land' between buildings.
In classics European cities there were shops on street level and dense blocks that generated demand for those.
The post war developments followed the 'high rise in the park' concept, lots of greenery and parking lots between buildings to create a mid density neighborhood.
But there is no life in the streets and you have to walk a lot through repetitive environment but to do anything you still have to go to the 'old city'.
High rises were far from being the only, or even the dominant model for social housing in Europe. Different plans such as low rises, semi-detached houses and single homes also got implemented.
Those are even worse - you need a certain density for urban life, otherwise you'll just create large empty spaces that belong to no-one, so nobody feels responsible for them.
> Look at French banlieues, German Plattenbauten or British Councils - they are synonymous with Crime and physical as well as cultural despair.
Sure, because what existed before was absolutely fine [1][2]...
The truth is that these policies worked so well that pepole completely forgot what existed before. The alternative to housing projects wasn't a country without crime or despair, it was more crime, shanty towns, people displaced by war and unable to get back to normal life, and young workers unable to move to places of employment in the postwar economic boom. That topic was so uncontroversial that every european government, leftwing or rightwing, did it.
I agree that a social housing project alone isn't enough to fix every problem, but that doesn't make it the source of other unsolved problems.
[1]: Nanterre's shanty towns, https://www.defense-92.fr/exposition/la-vie-des-bidonvilles-...
[2]: pre-war shanty town, https://www.theguardian.com/cities/gallery/2019/jul/04/how-p...
Sure, areas where aggressive migrants create a law-less area, where race based gang violence is a daily occurrence, each country now and then “discovers” its own rotherham-style ethnic rape-ring and police cars are sometimes burned down with the officers being locked in on purpose, are totally normal, so much better than before and were happening before anyways
It’s fascinating that America can be the world’s superpower(?) and yet huge swathes of society still live in unstable conditions like this.
> It’s fascinating that America can be the world’s superpower(?) and yet huge swathes of society still live in unstable conditions like this.
Because huge swathes of society choose to live in these unstable conditions.
They could move to Detroit or even Salt Lake City, but they prefer the lifestyle of New York City.
.. and the jobs? I mean, people moved out of Detroit precisely for that reason.
So say they do get evicted eventually, what are their chances of getting the next rental?
In a Palantir style totalitarian state with panopticon tracking of everyone's every thought, action and history? I'd say pretty good!
The founders of palantir didn’t finish reading the books
i assume they also owe back payments? with interest?
Blood from a stone. Sure the landlord could theoretically go after them, but they would spend a bunch of money on legal fees for someone that will probably never pay it back.
You can't blame Adams for delinquent payments. He dramatically expanded housing vouchers (the source of the budget crisis) which in theory should have reduced delinquency.
Moreover rents for affordable housing haven't kept up with inflation while benefits have.
Arm chair speculation like what's in the article won't suffice. People need to be surveyed and interviewed to get to the bottom of this.
Politico is an Axel Springer rag, in case anyone was wondering why they would put a photo of mamdani in the article. It's propaganda.
> “There is a subset of people, maybe the smallest subset, who are literally making a choice not to pay rent, and we don’t do well with acknowledging that but there is a subset for whom that is the case,” [...] Others bristle at the notion that some tenants are not paying rent just because they may be able to get away with it.
These people absolutely exist. To pretend that they don't is willful ignorance. They are, however, indeed a "small[est] subset" to quote the gentleman in the article. In the era of $4 McDoubles and $6 gallons of gas I have trouble believing that one in four people is my burnout college roommate who spends on Fireball shots and Xbox games instead of paying rent. Life is expensive these days.
I anecdotally know of a few cases in Seattle where tenants with high incomes that could easily pay just don't. There is a subculture that actively encourages this type of behavior and the laws are setup such that there are almost no consequences for it. I've also met people who bragged about doing it. While rare, it is still common enough that it has become a real problem and has become socially acceptable in some circles.
It is corrosive to the social contract when government policy tacitly encourages this behavior.
It's not rare. I repeat. It's not rare. I am a landlord in Seattle with ~55 active tenants/leases. Let's just say that I know of many landlords in the circles I run in that have absolutely stopped renting to leftie types because they've had so many issues over the last few years with many of them over litigating everything; and deciding not to pay rent over the smallest non-issues, or just not paying rent at all. I could cite case after case; and this topic is especially salient to me in the present moment because I am in fact dealing with one of these tenants right now and its a total nightmare. I will spare you the gruesome details of trying to work with this particular tenant but just trust me—I have an incredibly high tolerance to stress and this individual is doing their best to get as far under my skin as possible.
When the political class or the cultural zeitgeist tells you over and over that landlords are leeches and that "any attempt to profit off of housing is unethical"—people are going to take that to heart and have a hatred for even well-meaning small landlords. If you don't believe this is the attitude, go visit r/Seattle. The inflammatory language of politicians and cultural leaders sets the tone which plays out as legal battles and fights in properties across the city.
This obviously creates an adverse selection problem where small landlords illegally apply their own prejudices and biases in tenant selection. Honestly—could you expect them not to—when the repercussions of picking a bad tenant are so great? And when there are other demographic groups—like immigrants—who are absolutely, verifiably and consistently reliable as tenants. It used to be that it was the section 8 or low income type that were a huge problem but now there's an educated leftish fringe that landlords are also avoiding. Honestly with good reason, IMO.
Some homeowners just decide to not list extra rooms in their house outright. I remember hearing something like that Seattle has the highest number of unrented empty rooms in the country (though someone should fact check that). With the political climate the way it is here, it's obvious as to why this is the case.
With all due respect, do you consider yourself, with ~55 active tenants/leases, to be a "small landlord"?
Its spread across about ~ 6 houses. I'm definitely a small landlord. I deal with all tenant issues myself, handle all repairs, leases, and most importantly for me—maintain a healthy relationship (which has grown to many friendships). I use this term in contrast to a faceless, corporate landlord who owns larger apartment buildings. Small landlords and corporate landlords are nothing alike
Being generous with your ~6 number to be either 5 or 7 houses you have either 7.8-11 people per unit?
That's slumlord territory and not any morally better than corporate landlords unless your average unit size is a 4 bed/2 bath.
Also there is zero world where you have 6 houses, 50+ people and can call yourself a small time landlord. That's being able to live entirely off of your rental income and a full time landlord. You could maybe, _maybe_ get away with describing yourself as a medium time landlord.
Small time is living in a 3 floor house and renting the other 2 floors, or owning 1 other home to rent.
I'm sure OP meant 6 houses with several units in it each, not 7-11 people per house. Otherwise the distinction between house and unit doesn't make sense.
This is a small time landlord. Large landlords have easily over 10000 units, and he is one half of a percent of that.
I hope he is able to live off the rental income. It's a big job to manage 55 units and keep everything in shape and administratively going, deal with turnover and so on.
nah, having 6 buildings(not houses, if were being precise with terminology here) with multiple units in each, is not a small time landlord. If you can live entirely off the rental income then you are a full time landlord and can at best claim that you aren't a large corporate landlord, but you don't get to invoke the idea that you are some sort of mom and pop situation renting out a spare unit, which is what people assume when you say "small time landlord"
I'm the OP—just chiming in, I can just hardly live off the rental income I make, but its a lot less than my salary as a senior SDE. Yes what I am is not analogous to someone renting out a few extra rooms. I just think my experience is analogous to that of a small time landlord in that I know each tenant very well and we have good relationships—and I manually handle each part of their tenant experience. To add more detail, I share a bedroom in a 25 bedroom house that I own, which accounts for a bit more than half of my tenants.
That's a telling detail. How many 'big time landlords' are in the position of living in one of their 25 bedroom units? I'm going to skip the 'share a bedroom' 'cos that might well mean something otherwise desirable. In the best case scenario I too would be sharing a bedroom, but it wouldn't be my best case scenario to be in a 25 unit building unless it was quite large and well built.
> I can just hardly live off the rental income I make, but its a lot less than my salary as a senior SDE
there is a large gap between "can live off of"(my words) and "a lot less than my salary as a senior SDE"(your words). If you're making more than the median household income which based on the fed numbers is ~84k/yr[1] you've crossed the line past small time landlord. You may be making less than that, but I am going to be surprised if you are with ~55 tenants.
[1]https://fred.stlouisfed.org/series/MEHOINUSA646N
I didn't invoke a "mon and pop situation renting out a spare unit" idea, that's your own that you're projecting on my comment.
I did say that they are a small landlord, and I stand by it given that a large landlord is several orders of magnitude larger than them. If in your world that's only a label you want to give someone renting out a single spare unit, then so be it. I disagree.
> mon and pop situation renting out a spare unit
> small landlord
Those are effectively synonymous to me. The line in the sand that definitively makes you not a small time landlord is if you earn enough from rental income after expenses to make as much as the average job's income.
If you disagree I will need you to define what "small time landlord" means to you then so we can figure out the gap in our understanding.
So a slumlord
55 isn’t small by definition and under the law. You may feel small because it’s just you, and you don’t realize how much you’ve accomplished or the asymmetric bargaining position that affords you but your perspective isn’t corresponding with reality.
That being said, I do think a system that tenant rights to be as abusive of legal process as we have in some states ends up hurting tenants themselves. I think our courts should move much faster so nonpayment is resolved faster. But I also think all landlords should be required to pay 20% of rent to a home building fund so that new housing actually gets built.
Wouldn't 20% tax on rent just lead to 25% general increase on rents? I don't think there are that much margin around in leveraged landlords.
Really better would be just to bump something like income tax and use money from there for same purpose.
If a landlord can charge 1200 instead of 1000 why wouldn’t they? They’ll charge the maximum they can get away with, costs are irrelevant
Two landlords, one with a mortgage, one without, will charge the same amount for the same property.
Yes. And the other one is forced to charge 1200. So the other one can charge for example 1190. And the renters will choose the 1190. And then the next renter has to pay 1200.
Or the one without mortgage goes like I only get 800. Maybe instead I just throw this money in government bonds for better gains and save money...
Other option for same outcome could be just to charge any renter 20% on top of their rent. Which they directly pay to this fund. That would push rents down as they are able to pay less. Achieving exactly same effect.
You’re assuming there’s too much supply, both landlords will be able to rent the unit, one will make more money.
If leads to building that floods the system with supply then rent won’t increase. Landlords and lenders would have to adjust purchase prices and cap rates so valuations would come down. So this would need be gradually phased in until normal. The government would need to support home builders, buyers and landlords. But eventually the housing stock supply increase would match and be tied to new household formation.
At the end of the day most economic activity is really an exercise in ratios. Some states don’t charge sales taxes. Some change double digits. Yet retailers are able to function in both environments.
What is clear is that rental and purchase housing is increasing beyond inflation since 2008 and COVID and that’s not good for tenants or landlords.
I read their story as "I'm not small, but I know a lot of smalls who tell me things they won't even tell their confessor."
The net effect is most of the people I know with a rental or two in Seattle will only rent via direct referrals from people they know, which also allows them to rent at a lower rate. Their properties are no longer available to the general public. The demand is high enough that this works. Sucks if you are new to Seattle though.
This kind of non-payment of rent abuse exploded during COVID.
> And when there are other demographic groups—like immigrants—who are absolutely, verifiably and consistently reliable as tenants.
I know someone with something like 120 units. Unassuming nice old lady that makes over a million a year. She tries to rent to immigrants as much as possible since they don't cause issues.
The best people to rent to are illegal immigrants, you don’t have to do things like ensure they have livable accommodation as they first sign of complaint you just phone up the authorities and they get kicked out.
Honest question - how do you know a potential tenant is “leftie type”?
You know the horseshoe on the door that will stop the fae? He has just put instead of it maga hat with a tesla badge on it.
Honestly? not op but that seems easy.
It was an honest question.
Don't worry: they'll tell you.
The lefty landlords are an even bigger problem for housing affordability than the lefty tenants. They want the anti-property rights boot up the ass of anyone trying to build new homes or dwellings, under the auspices of endangered owls or environmental review or "character of the community" or the wetlands or whatever the current scam is. It's all the same commie shit but only for themselves and at the expense of everyone else, of course dressed up that the dumber and younger end of the tenants actually believe it's in their interest.
>stopped renting to leftie types
I’m curious how they’re managing to do this. I don’t give any outward signals of being a “leftie type” but I absolutely am. Conversely, I know lots of people who have a very punk look but are super conservative.
What exactly do you mean by "well meaning small landlord"?
I just try to be the landlord that I would want to have. I respond to my tenants quickly, always give them concessions, let them pay late, or at a discount when they’re struggling, referred them to work at my companies, etc, etc. it’s not all about the money, it’s also being a good member of the community, for me. This is in contrast to a corporate landlord where your $1500 disappears into a void every month.
That’s awesome. When I was growing up my parents were denied housing because they had too many kids and were almost homeless one time until a nice landlord of the same religion agreed to rent to us. Please take your responsibility seriously as it seems you do.
That being said there are “professional” tenants that try to scam the system to the detriment of landlords and other tenants. I would fully applaud resistance to their efforts to take advantage of the system.
Look, I'm sure you're a nice person and a better landlord than many corporate landlords; and trying to do well.
I'm genuinely glad you're trying, and helping your tenants when you can; but I think you've drunk a bit too much of your own kool-aid.
From perspective of your tenants, that money still goes into a void, no matter how nice you are.
> From perspective of your tenants, that money still goes into a void, no matter how nice you are.
Surely that's the case for all sorts of services we pay for. Renting a house is paying for a service. The money disappears and in return you get the service. A nice landlord (and by nice I mean - responsive to problems, following laws, empathetic to the tenant, trusting of the tenant etc) provides a better service than a bad one. Unfortunately you rarely know which kind of landlord you have until you move in.
I think it's fair to say that there are bad landlords, and that there are circumstances where landlords are exploitative. But that doesn't change the fact there are also circumstances where landlords provide a useful service to people. Buying a house isn't always practical - landlords should exist to provide a service to people who don't want long term financial commitments.
I literally want to have a landlord. They provide a valuable service. I could afford to buy the places where I rent but actively avoid it.
The idea that landlords don’t provide a valuable service is a kind of willful denial of reality.
Much of the land in New England / northeastern USA was apportioned to proprietors without any service rendered, plus squatting on grandfathered regulations that no one else can take advantage of. The actual improvement is a service, but commonly it's something like a shithole house where the physical manifestation of the improvement is like 10% of the real estate value.
In someplaces like Kansas where people actually mixed their labor with the land (homesteading) to claim it and then improved it and the title transferred in capitalistic exchange, landlords are basically 100% providing a service. But in New York very little of the "value" provided has anything to do with services and labor mixed with the land as someone like Adam Smith envisioned as value generation. It's largely just some proprietor being handed land in the 1600s with the wand of a King, taking the shit by violence, then making regulations out the ass with violence (to make their shithole house pretend to provide a more valuable 'service') and then exempting themselves via grandfathering and then people exchanging title for same. Their service is a legacy of beating the shit out of Indians with weapons and then the populace with government and then allocating the value to themselves.
Maybe. But I had a landlord triple my rent in NYC because he wanted to sell the unit. I didn’t want to move but had no option.
>he wanted to sell the unit
You had an option if it was for sale.
What exactly are you asking for? They clearly are expressing empathy for others’ situations.
I live in a managed building that is completely soulless. I needed to extend my lease by one month before moving out. They wanted me to sign a new 12 month lease at a higher rate, break it, and pay a two month penalty for terminating early. This took over a month to get to something remotely human.
There is absolutely a difference between someone treating people like people and bad landlords.
Also, they aren’t throwing their money into a void. They’re literally getting housing.
“Money into a void” is the exact phrase that the _person I’m replying to_ used when comparing themselves to a corporate landlord.
What are you basing your judgment of OP on? He is listing various ways he goes above and beyond for his tenants even though he certainly doesn't have to. Your credit card company doesn't waive your late fees, yet he does when he knows tenants experience hardships. That's pretty awesome.
Also, the money doesn't go into a void: Tenants receive housing in return.
What judgment? I literally wrote that they’re a nice person!
“Money into a void” is the phrasing _they_ used!
> but I think you've drunk a bit too much of your own kool-aid
That (rather judge-y) part negates the "nice" part your started out with. I don't think OP "drank too much of his own kool-aid", he simply listed all the nice things he does for his tenants, which are great and well beyond what you could expect from an unrelated party in a contract for a service.
Yes, and then what was their last sentence?
I'd like to try and give you some sympathy, but my last landlord was a well-regarded property management firm who left me with no heat from the end of October to the weekend of Martin Luther King Day in New England, effectively only fixing it once I withheld rent, got on the local news, and was threatening a lawsuit. So, uh... yeah plenty of landlords have done a lot to earn that reputation for the class as a whole.
That's true, but I think when you pick a place to live in, you're not only really only interviewing the living establishment itself, but also the landlord/property management associated with it. I make an effort to do all of the tours of the units myself and establish good repoire with the tenants from the get-go. It's certainly inexcusable if a landlord doesn't fix things that impair living conditions—in Seattle we have a law that things of this nature must be fixed within 48 hours which I think is a reasonable law.
> have a hatred for even well-meaning small landlords
In what way are you well meaning? You're only doing it for money.
The people not paying you rent are also only doing it for money.
Sucks when people behave like you, huh.
Yes I’m doing it for the money, I have to be compensated for my time and the financial investment obviously. People who decide to deceive me break not only a social contract but also a legal contract and a commitment they made at the time of signing a lease. If everyone acted like them, there would be no stable housing available for anyone. Talk about a bad take…
> Yes I’m doing it for the money
Right, so not well meaning. You said well meaning. You're taking that back. Correct?
You're upset at someone maximizing money at your expense. You like it when you maximize money at someone else's expense just fine. Correct?
The world's smallest violin is playing.
Please no 'I'm providing a valuable service' argument. We've already established your only interest is money.
I never said my only interest is money. At your job, is your only interest money? Do you not feel a social obligation to your coworkers; want to do good for your teammate and your company? Again, talk about a stupid take, as if humans are one dimensional like that. Corporate landlords and hedge funds that own apartment sky rises are probably only in it for the money. You can't say the same thing about every small landlord just because they make a profit.
'You're only doing it for money'
'Yes I’m doing it for the money'
---
'We've already established your only interest is money'
'I never said my only interest is money'
---
Bad take, stupid take, he said.
Let me help you - the act of being a landlord, big or small, presupposes interest is money first, everything else a distant second, third and so on.
We're now at the level of a 7 year old, down from about a 10 year old that I started off with. Feel free to engage with what I've said as a whole instead of pedantry over the use of a single word anytime you wish.
Wow, way to not actually read what a person said, and then quote things and say they mean something that they don't.
I get that you don't like the concept of people owning property and renting it to others, but maybe stop arguing in bad faith?
Here's a hint: it's possible to be doing something for the money, but not only do it for the money. It's possible to operate a business, but also be a well-meaning person who treats customers of that business with empathy and compassion.
I don't know the landlord in this subthread, so I can't say if he's telling the truth about how he treats his tenants, but if he is telling the truth, he sounds better than the vast majority of landlords out there. Not just better, actually good.
Society isn't supposed to run on philanthropy.
Dialogue isn't supposed to run on flippant remarks.
Also, you're not qualified to have an opinion on the matter. Dunning-Kruger effect is extra strong when it comes to the holy matter of sociopaths making money in places like these.
Lefty tenant here. I def. stopped paying my rent a few times until my landlord fixed their shit or agreed to stop scamming me.
Last time I did it I signed a lease for a year, with 2 months of advance notice if I decided to leave (in the UK). I told them 2 months before the end of my lease, and they told me I had to wait for the end of my lease, then wait 2 months, and then I could be out.
I just stopped paying rent, and left them a horrible one star review on gmaps.
One day he showed up at my place (with soup who was coming to fix something) and tried to enter. I told him to stay out. And then he started crying and telling me how I could not just stop paying rent. I could tell how hard it was to be a small landlord.
I told him that I would resume paying if they signed smthg to agree to let me break the lease at the year end AND reimburse me the fees that appeared at the least minute, a year ago, right as I was signing the lease in front of them.
They agreed, reimbursed me my caution/deposit at the end, easy.
Would recommend just stop paying your rent if anything ever happens. I would do it again.
> corrosive to the social contract
What we see is iterated prisoner's dilemma. Enough people have had their landlords play "defect" against them (rent rises in excess of wage inflation, evictions, failure to do maintenance, intrusion) that the public have started playing "defect" against the landlords.
Same as in a lot of American public life.
As someone who also lives in Seattle, I'd be curious to see any verifiable citations to such a wild claim
https://www.nationalreview.com/news/seattle-area-landlord-tr...
One news article mentioned he worked in the medical field and when he was approved to move in, his income was $300k+).
The state actually ended up helping cover the lost rent and paid for the tenant’s legal bills for fighting the eviction.
https://www.discovery.org/a/nightmare-tenant-in-bellevue-con...
He said “anecdotally”. In any case, I was wondering that if I know a friend who does this, how could I ever present a verifiable citation for it? You may have to rethink your ask.
Sure, but the comment upthread could provide evidence that "it is still common enough that it has become a real problem".
Okay. I can anecdotally tell you that user jandrewrogers does not know of any cases in Seattle where tenants with high incomes that could easily pay just don't. Our anecdotes cancel each other out.
> how could I ever present a verifiable citation for it?
There would likely be at least one (1) report of such a wild claim due to how wild it is. We wouldn't need anecdotes!
Anecdotes aren't usually admissible as evidence, is the thing
https://www.discovery.org/a/nightmare-tenant-in-bellevue-con...
I’m on phone but if you search “Kim Seattle landlord” you can get more details of various articles on the situation.
That is such a sad article.
I only know of one https://komonews.com/news/local/twitter-shutdown-seattle-off...
I mean, Elmo's SpaceX is busy lying about being "In Redmond" too (they're in Redmond Ridge, a significantly more rural area about 6 miles away)
There are such people. I have a unit in Seattle that sits empty because I don't want to risk getting stuck with such tenants.
In Seattle, you can't:
1. Evict people from November to April (it's "winter"). 2. Evict people with schoolchildren during the school year. 3. Run background checks on prospective tenants. 4. You _must_ rent to the first qualifying tenant. 5. You must offer 3 months in rent as compensation if you decline to renew the lease. 6. The maximum rent increase is capped.
Oh, and eviction process takes about 1.5 years now because the courts are overloaded and the tenant can use procedural tricks to drag out the process.
If you want names, this case made newspapers: https://wealthandpoverty.center/2025/02/11/the-bellevue-squa...
I don't understand why you wouldn't sell and invest elsewhere in this case.
Many people do. I certainly never wanted anything to do with that rental market when I had a vacant condo.
The unintended consequence is that there are closed rental networks that never advertise and only rent to vetted people with reputation on the line. These often have cheaper rents than publicly advertised rental properties because the risk of bad tenants has been reduced.
It turns the public rental market into an adverse selection phenomenon. Over time, the best tenants have access to cheaper better rentals that are never even visible to the average rental tenant.
Apparently, even with all these rules designed to damage the profitability of landlords, being landlord must be extremely profitable as they keep doing it.
https://www.king5.com/article/news/local/mega-property-inves...
It's not. Seattle is losing small landlords left and right. Instead, people are selling houses to large management companies that can spread the risk across multiple units.
I bought the unit from my neighbor as he was moving out. It's a townhouse, so I share a wall with that unit.
To be fair, _some_ anti-landlord laws are relaxed in this case, but not enough to make the worst-case scenario reasonable.
Apart from maybe being a little more flexible on evictions, none of the other reasons seem problematic.
For instance not renting to the first qualifying tenant is a common root for discrimination. Why wouldn’t you rent to the first qualifying candidate?
The giving tenant three month rent thing is for a very small circumstance - for example huge rent increases if the tenant income is low, condo remodeling, etc. The wording is: “landlords who issue a housing cost increase of 10% or more (within a 12-month period) must pay relocation assistance if the affected household earns 80% or less of the Area Median Income and chooses to move.”
Maximum rent increase being capped also makes sense - I’ve been hit with 15-20% rent increases with no choice but to move.
It seems like you don’t like the tenant having any rights, and you want to impose your will upon them.
Are you also wanting a company to have to hire the first qualifying candidate and immediately stop all hiring? That is nonsensical. A landlord and a tenant should be free to contract as both parties wish.
Does this "first tenant" rule not incentivize people to apply immediately, sight unseen, and then they just eat the credit check fee on the apartments that they end up not choosing? Or maybe they can even bail before the credit check is done, if they can see all of their candidate apartments in that time, or at least do see the one they applied for and decide they don't want it?
This is an insanely bad take.
> For instance not renting to the first qualifying tenant is a common root for discrimination. Why wouldn’t you rent to the first qualifying candidate?
You should be able to select freely who you want to have live in your house. If you're a building owner, there are reasons that you might want to be able to have freedom of choice in choosing who you have live in your building. When the government forces you to choose the first applicant who meets your selection criteria, your selection criteria becomes incredibly strict—720+ credit score, makes 4x the rent, etc. Especially when evicting a bad tenant becomes basically impossible, landlords work even harder to vet candidates, meaning there are a lot of false negatives that aren't offered housing. Seriously, you can't evict a tenant just because its winter? You know how many people take advantage of that — read my sibling comment in my thread. I myself in Seattle have dealt with multiple tenants who have done this so they could have free rent as their lease expired. What do you think this does to my tenant selection process? I up the bar.
> Maximum rent increase being capped also makes sense - I’ve been hit with 15-20% rent increases with no choice but to move.
You act like there's an oligopoly that dictates rent prices from their mountaintop that we all have to abide by. We live in a free market, and small landlords compete with large buildings for tenants. Creating these types of caps just makes the system less efficient — focuses efforts on the false pretense of tenants rights rather than the true equalizer like building more housing. And honestly, it just drives small landlords out of the market who can't handle it. This just leaves corporate landlords who are certainly less tenant friendly and will further this tenant vs landlord arms-race. We should be creating incentives and making it easy for individual homeowners to become landlords (at least in Seattle) if we want the paradigm to improve.
I've lived in properties with no form of rent control whatsoever. Landlords issuing 10%+ rent increases is awful. it denies you the stability that's granted by fair/consistent rent increases. It erodes the community fabric by having a revolving door of tenants who live there 1-2 years before leaving.
I do agree that we should focus on other remedies such as building more. However, even in a market with ample housing, I'm not convinced that some Landlords would still just as happily take the 'I bet they'd rather a 10% rent increase than deal with the hassle of moving' gamble.
Most of the people I've met who are anti rent control/stabilization usually don't have the pleasure of a landlord who has decided to engage in such tactics. Almost always they argue from some place of guaranteed housing safety.
this is an issue that applies to people making 30k and also people making 300k.
I like the approach Finland took when it abolished rent control in the 1990s. Basically, you are not allowed to chain fixed-term leases indefinitely. If the actual intent is that the tenant stays until further notice, the lease agreement must reflect that.
Now, if you have an indefinite lease, the landlord can't increase the rent, unless the basis for the increase is already in the agreement. Typically the rent is tied to a measure of inflation, and the landlord chooses once a year if they should make the increase.
You could sign a longer lease and get the stability you desire. Negotiate a five year lease and stability is yours.
> You should be able to select freely who you want to have live in your house
We already tried that. It turns out that people are racist, so now we need laws to protect against that. It sucks for all the decent non-racist folks but the alternative of not having those protections was far worse.
If you force people to have someone in their house that they don't want, they are not going to rent their house out. This will lead to less units on the market. Your point about racism is fair, but I don't think the answer is a solution that reduces rentable units on the market.
What alternative solution to housing-related racism would you suggest?
The one that actually exists? Have you never heard of the HUD fair housing initiatives programs? You hire a white actor and a black actor with the same job, income, credit, etc and if a landlord consistently refuses to rent to the black actors, you sic the DoJ on them for violating the Fair Housing Act
Nope, I hadn't heard of that. Neat. I see two problems though:
1. I can see this being effective against larger landlord that will have many units available every year, ensuring that adequate testing can be performed. But on smaller landlords with only a few units, it seems like it'd be hard to test. (for example, you get rejected from an apartment. The landlord rents it out to someone else. You file a FHIP complaint, but the landlord no longer has any units available so they cannot test.)
2. It seems like this is largely driven by complaints? If I was rejected from an apartment, I'm not sure how I'm supposed to glean whether or not it was based on race.
Re #2: I feel like people of the kinds of races that often get discriminated against have pretty decent radar when it comes to figuring out why they were rejected.
Okay, sell it to someone who will live there then. You're not a saint for taking a unit someone wants to buy and forcing them to rent instead.
How is renting different from hiring in that regard? Nobody would consider requiring employers to hire the first qualified candidate, but at the same time, we don't allow employers to discriminate on the basis of race.
Why couldn't the same law apply to residential leasing?
Are we sure that law is working as intended? Or are employers simply not admitting to factoring race into the decision? It is next to impossible to prove a candidate was rejected on the basis of race, especially when you can legally reject someone for not being a "culture fit" on the team.
I'd also argue the stakes are higher when leasing, so landlords will be less likely to take a chance on a race they don't like. Most jobs in the US are at-will employment so you can be fired at any time for almost any reason, but evicting a tenant can be a long process.
>t is next to impossible to prove a candidate was rejected on the basis of race
It is possible to prove a company is disproportionally one or the other when making the claim. Of course when an industry has far less applicants or members of a certain group that's to be expected but still. Consequentially I've heard of some pretty blatant race based selection especially in the US. It's just that that selection ends up excluding white people (or east asians) A while ago I even discussed with a hr person here on hn who was defending their hiring of that sort with the most flowery wording about 'just giving priority' or 'reaching out to members of their prefered group specifically' fist if all they get is not the desired group.
This is utter BS. Seattle is about 40% non-White. And has never been racist, or even had slavery (outside the Native population).
If you think there aren't any racist landlords in Seattle (or any particular place), then I have a bridge I'd like to sell you...
Having a large non-white population is not a protection against race-related discrimination.
> You should be able to select freely who you want to have live in your house. If you're a building owner, there are reasons that you might want to be able to have freedom of choice in choosing who you have live in your building.
That’s basically discrimination? Make a strict selection criteria, that’s fine. The city also has affordable housing for people who don’t qualify. You set what works for you, why do you care if it’s too strict?
I am not acting like there is an oligopoly, but not having tenant protections means tenants are at the mercy of shitty landlords. And there are a TON of them. Am I not supposed to have any rights, and the landlords gets to do whatever they want? Free market doesn’t mean regulation free.
Edit: you said “We should be creating incentives and making it easy for individual homeowners to become landlords (at least in Seattle) if we want the paradigm to improve.” - what do you propose? What about landlords who don’t want housing built because they like owning a scarce asset? What kind of rights do you think tenants should have?
Yes, discrimination based upon characteristics that aren't immutable is perfectly fine and something we do every day. I discriminate against my neighbor who invited me over drinks in favor of my best friend who invited me to his birthday. I discriminate against the potential hire who doesn’t have experience in this line of work in favor of the person who’s a nationally renowned expert. I discriminate against a tenant with a history of failing to make rent in favor of someone who consistently provides payment every month. People are different and valuing one over another in specific contexts is hardly scandalous. It only becomes a proble if you decide to discriminate against someone based upon immutable characteristics such as their race, sex, national origin, etc. because you’re not treating them as an individual.
I get where you’re coming from, but none of them are scarce inelastic resources. The work one especially doesn’t feel like discrimination.
It’s also very different - you’re hiring someone to do a job for you, vs wanting someone who’ll pay rent on time and not destroy the property. A mediocre employee vs an excellent employee can make any huge difference to a business.
That’s not the case with renters - if person A and person B both pay on time and don’t trash the place then they are quite fungible.
> if person A and person B both pay on time and don’t trash the place then they are quite fungible.
Based on those two sole criteria, no, they aren't. Person A might call weekly about trivial matters that they should be taking care of themselves (lightbulb burned out, oven needs cleaning, refrigerator water filter needs replacement, etc.), while person B just takes care of things and doesn't bother the landlord.
Your experience as a renter is not the same as the experience of a landlord. If you've been on your first job for a month and you pinky swear to pay rent on time and the next candidate has been on their job for 3 years then I'll take that candidate every time. It's a risk calculation. You are more likely to lose your job than the other candidate, and when you do and can't pay rent anymore and won't leave then that is a very expensive problem for me.
The same goes for savings, credit score, and other factors. These are not nearly as fungible as you seem to think.
> That’s basically discrimination?
Discrimination is fine, as long as the discrimination is not based on protected classes. If I were a landlord, I'd discriminate against people who act like assholes, for example, regardless of their ability to pay the rent, my rationale being that an asshole will likely be a problem tenant. And that I just don't enjoy dealing with assholes. Not sure "no assholes" is a reasonable thing to list on an official rental advertisement.
> It seems like you don’t like the tenant having any rights, and you want to impose your will upon them.
No. Have you heard the phrase: "justice delayed is justice denied"? I want this rule to apply to _everyone_.
Also I would agree with all those rules with one addition: unpaid rent should not be discharged during bankruptcy.
Nothing on that list sounds like a particular hardship. Your "Oh, and" is unfortunate and ought to be addressed, but then again, that was intended as your cherry-topper, not your main course.
This is people's _homes_ we're talking about here, not a baseball card where privileging the owner is without too much consequence. If you lack the empathy to understand why this is a special case, maybe don't be a landlord.
Actually landlords have a reasonable expectation you don't turn _their home_ into a crack house and no one should be forced to rent to scumbags.
> _their home_
It's not their home.
They can't walk in, wipe their shoes on the hallway rug, make a pot of coffee, use the bathroom, turn on the TV, and take a nap on the couch. At least not without their tenant's invitation.
When they chose to rent out the house they yielded some of their property rights. The old landlord argument that "it's my house I should be able to XYZ" doesn't hold water.
It may be the landlord's house, but it's not their home. A home is something you live in.
So do other nearby tenants who aren't crack users.
Why should landlords have that expectation? I think the default case should be that when someone rents a space they have freedom to do what they want with that space until they stop renting it, and then when they stop renting it they must be forced to return it to its original condition.
Did you know in Australia it's normal to give your landlord a tour of your house every 3 months to prove you haven't broken it? That's completely ridiculous.
And how exactly do you "force" the deadbeat broke tenant that trashed your house to return it to its original condition?
Keep their deposit
I explicitly bought in Lynwood so I’d have the option to rent out my house and avoid king county
Someone I know rented a flat in Draguignan to a "friend" of a "friend". After some time he stopped paying the rent and bought alcohol instead. It was a tiny rent but it lasted for a long time. She didn't have a mortgage on it but still I don't think I would be that patient as a landlord.
> They are, however, indeed a "small[est] subset" to quote the gentleman in the article.
The numbers don't have to stay small because this behavior is not generated independently in a population. Multiple people may become aware of it by talking to each other, social media, forums, some crazy news event that refers to it, etc. All of the sudden a lot more people decide they can do it as well and tell their friends.
I am not defending it or saying one side is right or wrong just that when it comes to things like this there may be a different model at play on how this behavior is generated.
There's entire Reddit communities of these people where they encourage and validate their shitty behavior.
With some of the stories I've read, you'd have to be positively insane to be a small-time landlord these days, especially in these large cities with kooky renter protections that make it nearly impossible to evict someone.
Go watch Pacific Heights with Michael Keaton for a fictionalized account but this stuff absolutely happens every day.
I saw one recently where the renter has not paid rent for six years and is unable to be evicted. It made national news.
So where does that leave the industry? You eventually push out the mom and pop landlords by making the regulations so insane it only leaves behind the large corporate property management companies and their army of lawyers. Who will collude and drive rents up. It's a vicious cycle and these cities are not helping one bit.
Doesn’t help that the landlords want to squeeze the renter for what they are worth. It’s weird to me that shitty landlords are normalized but shitty tenants get a (rightfully) bad rap.
These laws become the way they are because landlords brought it upon themselves for the most part - they’re keeping assets that have massively increased in price and want to extract more and more out of the tenant.
If you have a home that’s paid off your expenses are basically just property taxes, maybe they should do what they can to keep good tenants instead of chasing profits.
> These laws become the way they are because landlords brought it upon themselves for the most part
These laws seem quite unrelated to the problems.
There needs to be laws to protect the renter against bad landlords and there needs to be laws to protect the landlord against bad tenants.
Nowhere there it implies there should be insane laws that make no sense. Such as creating a system where someone can skip paying rent for many years and continue to live there.
Landlords need laws that hold their feet to the fire to maintain the properties to a livable standard (the state/county should define) and fulfill any other obligations of the lease. At the same time there need to be laws that force the renters to pay on time and not destroy the property. It's not a case of one or the other.
I’m not denying any of that. If you don’t pay rent it makes sense that you’re evicted. This is completely okay with me, and the city should change their rules around it.
The issue is that housing is a necessity, and the relationship isn’t an equal one. A landlord can usually absorb vacancy, repairs, or a bad investment decision; a renter can’t easily absorb losing their home or a sudden 20% rent increase.
> a renter can’t easily absorb losing their home or a sudden 20% rent increase
Right, so let's pass laws (where not already in place) that prevent sudden eviction (e.g. nobody should be able to be evicted if they are a few days late or even a few weeks) and prevent sudden 20% rent increases.
No need to pass laws that prevent eviction for years. We can solve all these problems without causing other problems.
the obvious middle ground is preventing eviction until a new tenant is found. if you owe 3 months of back rent your landlord can put up your apartment but you can stay there as long as nobody takes it. if you pay back your debt they have to cancel the listing and keep your lease. that way theres less empty apartments and homeless people putting pressure on support systems.
Rental prices stay surprisingly steady even when house prices go insane - compare similar apartments/houses in major expensive cities and cheaper ones.
Sure but the rent will follow the increased purchase price. They also don’t go down, or at least they’re extremely sticky.
They're limited by what people will pay - and "techbro" cities have people with insane salaries willing to fork over big bucks. But there are similarly expensive areas that don't support the income necessary, and there often you find huge rental inversions.
I'm not sure what you mean by "squeeze the renter," but it's hard to find any person that invests substantial money (risk) in a business that doesn't want to maximize profits and charge what the market will bear.
Laws became the way they are because policy created a housing shortage, and renters are a bigger voting block than landlords.
I look at it this way: housing is a basic human necessity. Structuring it as a standard business is a detriment to society. Sure, being a landlord is a business, but the whole "maximize profits" thing and "charge what the market will bear" thing should not be allowed for housing.
Totally wrong. A home has a lot of expenses beyond taxes, especially maintenance/upkeep. If the landlord just breaks even, where does the money to repair the roof come from?
Also, providing housing is a service that should be done at market rates, and as an investment must yield a return to make sense. Or do you expect stock investments to yield nothing and just retain their value too? Should companies not raise their prices for goods? Do you realize that this also means that you would never get a salary increase? Are you never asking for a raise because you'd be "chasing profits" for yourself?
There's a huge lack of financial literacy in some of these comments.
Homes do have a lot of expenses but it depends on when you bought your home. If you have a cheap mortgage then rents can quite easily cover repair costs. Landlords also minimize the maintenance costs by cutting costs wherever they can. I also never said they shouldn’t make money - they absolutely should, otherwise nobody would want to be a landlord.
But, I think you are overly harsh and your comparisons misplaced. Homes are quite inelastic and a necessity for everyone. They are very unique category of assets. Financial impacts to a landlord vs a renter is also quite lopsided - a landlord has far more “financial padding” to account for macroeconomic shocks compared to a renter, so you end up with some protections in case of sudden job loss. They have morphed into something worse now, but the intent makes a lot of sense.
> providing housing is a service that should be done at market rates
That's an opinion, not a fact. I don't share that opinion. Societies are healthier when people are housed, and when that housing is well-maintained. "Let the market decide" often doesn't get you that.
> an investment must yield a return to make sense
Agreed, but we can and should cap that return if not doing so leads to housing insecurity.
> There's a huge lack of financial literacy in some of these comments.
From you I'm seeing a huge lack of understanding about what capitalism is good and bad at.
Nonsense. We came up with a name for those terrible landlords they are called slumlords. NYC even has a whole website dedicated to them: https://www.landlordwatchlist.com/
Tenant "protection" laws are the type of idiocy that economically illiterate progressive politicians always produce. They end up having the opposite effect by making property owners less willing to rent out to anyone. The only effective way to protect tenants is to set public policies that encourage new housing development. When there is a housing surplus, the laws of economics force landlords to treat tenants well. Build more housing!
Tentant protection laws are always a matter of degree.
Requiring a process in order to evict tennants is a good thing. If the process is unsatisfyable or extremely lengthy, I don't think it's a good thing anymore. There should be a way to get destructive and severely disruptive tenants out in a hurry. Ordinary breach of contract things (failure to pay rent, problematic behaviors that violate the lease but aren't an immediate issue, etc) should have something like a 3-7 notice period and then be referred to court and figured out without undue delay.
I'm ok with limiting the reason for the landlord ending a lease, especially where the tenant has stayed there for a long time.
IMHO rent control/rent stabilization can be useful when the cap isn't set too low, and there's reasonable ways to pass through less predictable costs. If the cap is too low, rent gets significantly behind the market rent which causes trouble for landlords but also leads to situations where renters end up stuck where they are; maybe better than being forced out but not if the property deteriorates. If the cap is too high, it doesn't provide meaningful stability or a planning horizon for tenants. If it's in the right place, it gives renters reasonable time to adjust to market changes. Again, IMHO, 3% is probably too low, 10% may be too high, somewhere in the middle is nice to have.
Tenant protections setting deposit limits and process for assessing against the deposit seem reasonable to me. Landlords are going to screw tenants out of deposits if they can, regardless of the market realities, because the relationship is over, the renter is busy with other stuff, and the landlord has the money.
Is there any morally valid reason to evict a tenant other than nonpayment of rent? For bad behavior that should be between them and the police, not you.
I'm sure there's lots, but lease says no X, tenant insits on doing X seems like a reasonable thing to evict about, but not a reasonable thing to ask the police to adjudicate.
At least as long as 'no X' is a reasonably moral thing to restrict. So no pets, no working on cars in the parking lot, no smoking, no loud noises/no more than N police noise complaints, etc. At least my moral code allows one to form a contract that restricts such thing and that when one party refuses to honor a (reasonable) contract, the other party should be able to require the breach be mended or the contract be ended, and that some breaches can't be mended.
Some things that might not be stated in a lease but would also be reasonable to evict for could include no interfering in the quiet enjoyment rights of neighbors, no storing of dangerous goods, no causing dangerous/unsafe situations.
Why is it moral to restrict random stuff in a rental contract? Would no programming be moral to you?
Sure: it's morally valid to evict someone who violates any legally-enforceable provision in the lease agreement they signed.
Ah so yoyre stuck in the Kohlberg stage where follosing the law is the highest priority
Absolutely. The law with respect to behavior has almost no force within multi-tenant buildings. It is primarily subject to contract law. The police have no power there. Tenants that repeatedly violate the contractual rights of other tenants have few remedies beyond eviction.
A single asshole can destroy an entire building.
Tampering with smoke detectors
Not all bad behavior meets the threshold of police intervention.
Here's a nearly-strawman-but-definitionally-valid example: a landlord may want to remove a tenant who's being unusually hard on the place and accelerating the wear-and-tear. Could be serious enough that paying the tenant to go away would be cheaper than the cost to remediate the damage accrued over the length of the contract.
> They end up having the opposite effect by making property owners less willing to rent out to anyone.
Yes, good! Then they will sell their bloody housing stock and people can BUY them instead
That assumes that everyone who wants housing can afford to buy it rather than rent it. It also assumes that everyone who wants housing even wants to buy it.
"Sorry bud, I know you just wanted a place to live while you went to college in this city but if you're not ready to buy a house we don't want you here"
If all the properties owned by career landlords were returned to be sold, the value (and price) of property would go down.
This idea that ubiquitous rental (which is normally at obscene prices any way) makes cities more accessible to live in is nonsense. Landlords are creating the problem that they state they are fixing
This is true, the prices do drop. In Amsterdam at least it meant low income renters getting evicted so that people with roughly 2x their income could buy their former homes. https://www.youtube.com/watch?v=t05cFv02pzY is an interesting discussion of this.
There's an economic floor for the price of housing: the amortized cost of the building and its maintenance, plus taxes and overhead imposed by governments, utilities, mortgages, etc.
In other words: even in a plentiful housing market, there will always be someone who struggles to pay rent (including transiently), because a rational housing market can't offer $0 rents. Tenant protection laws exist to protect that person from a landlord who would otherwise be incentivized to throw them onto the street.
Yeah… these laws for private landlords to subsidize housing for other families.
If you only have 1 rental property and your tenant doesn’t pay, that’s a 100% loss of revenue while your family personally bears the cost of supporting this other family.
Whereas corporate landlords can absorb these losses by raising rents on 100 doors to cover the families that refuse to pay
Don't rent it then. All these laws are designed to make being a landlord hell so that people won't be landlords.
So it's better that huge corporate landlords own all the rentable housing stock?
You seem to be assuming that if we, say, just made renting illegal, everyone would a) want to own a home, and b) have the finances necessary to do so. That's not the case.
So, you would like there to be less housing, which makes housing more scarce and raises prices on everyone else?
My house fits up to 6 adults, but only 3 are living there now because I don’t want to be a landlord.
Having 3 empty rooms helps no one except corporate landlords that can navigate and scale (and collude…).
Maybe the lesson is just to not be so overleveraged.
If grandma pays 90% less taxes than me (prop13), where is the leverage?
If grandma bought the the house in 1990 and property values have risen faster than wages and inflation, where is the leverage?
If grandma is under insured, either due to the insurance company not updating coverages with inflation or no insurance bc she isn’t required to, where is the leverage?
sure because a property owner is going to not rent out a property and just take the month on month hit for having an empty property. They'll either rent it or sell it.
There is a middle ground, just need to find that point.
Apparently you haven't been paying attention to what's happening in the rental market. Landlords in cities with strong tenant protection laws will absolutely leave a unit vacant for months until they find someone with a high income ratio and credit score. This leaves poorer people stuck with no options.
Do you have evidence? There is evidence that RealPage software illegally coordinated (maybe coordinates) landlords in keeping units off the market in order to reduce demand and increase prices for everyone.
https://www.nytimes.com/2025/11/24/technology/realpage-doj-s...
Me (and others in this thread).
I have a 5 bedroom house that I rent out 2 rooms, but not interested in accepting more people unless they are friends or have a very high income.
At my home’s peak, we had 6 adults living there, now its at 50% capacity.
How many high income individuals want to share a house with 5 strangers?
Apparently not many hence the empty house.
In SF and Seattle during hiring booms, a lot of young workers move to the city with no social connections, so they start their new life in hacker houses to kickstart their friend group.
It's surprisingly common in places like SF, and near popular colleges.
Vacancy tax. No one should have the right to buy multiple, rentable homes and keep them unused in the middle of a housing crisis. It’s sociopathic.
So in the Netherlands, For many years any property left vacant and unused dor more than a year could be legally squatted.
it forced landlords to keep their properties on the market and insured full usage of the severely limited available housing stock
Do you own your own house? Are you rich?
I’ve known acquaintances who got de facto evicted without warning just because their landlord decided to make a few extra bucks. Were that to happen to me, I would not be able to rent in my current city at all due to the recent influx of wealthy tech workers. (Read: extremely high rents with ridiculous income requirements.) Fortunately, my city has robust tenant protections and rent control, so I don’t have to live my life in fear of ending up on the curb. Some people see that as a bad thing; I guess they think I should save up a few million dollars to buy a condo or abandon my community and move to the boonies.
This would be less of an issue with more housing stock, but that takes decades to build. As a city resident inconveniently living in the present, that does not help me much.
Obviously, I’d never vote for a politician who would make it easier for a landlord to evict me arbitrarily. And I’d eagerly vote for the same protections for any other renter.
I think you’re leaving details out of your story. If the landlord wants to make a few bucks, then they keep their good tenants (lowers vacancy rate, keeps repairs low, etc).
Kicking out good tenants cost landlords money.
And yet many landlords kick out good tenants, and take the risk that a new tenant that's willing to pay 30% more turns out to be a bad one.
Not sure why you're surprised: this sort of thing has been widespread for years in cities (like SF) where demand outstrips supply.
It’s pretty simple. There’s a tech boom or similar, a bunch of rich workers move in, rents go up. Landlord spikes rent by 30% to take advantage. You can see this happening in r/sanfrancisco today, for non-rent-controlled units.
Sf is kinda a mess. Sf’s rent control also means tenants can’t leave (locking up more housing, reducing supply, forcing everyone else to pay more), thus continue to discourage rent controlled tenants from moving since moving means even higher prices.
The property tax situation in SF is a mess.
SF also requires a lot of expensive regulations (earthquake proofing, renovation permits, rising California insurance costs, etc).
Also… the unfortunate reality is there is only so much space and the capital markets determine who gets to live where. If you’re not able to keep up in a city, then there are better places for you.
> Sf’s rent control also means tenants can’t leave
They have exactly as much freedom to leave as they would without rent control. They _choose_ to stay because rent control has made it advantageous to stay. The way you phrased it implies you're suggesting this is a bad thing for renters but that is strictly a positive. Without rent control they'd have zero affordable options, with rent control they have 1 affordable option. Woe to the inhabitants of rent controlled apartments with their golden handcuffs.
Rent control drives up rent prices for everyone.
So yes, if you have rent control in a city, it would create an environment with zero affordable options.
Obviously it does not drive up the rent price of the person who is paying less rent. That's the whole point. The residents of SF have voted to prevent you from taking their apartments, so if you don't want to bid very competitively for an already empty apartment, you'll just have to take an apartment somewhere else.
> Sf’s rent control also means tenants can’t leave (locking up more housing, reducing supply, forcing everyone else to pay more), thus continue to discourage rent controlled tenants from moving since moving means even higher prices.
This is disingenuous. In the absence of rent control (or prop 13 for property owners) you famously get a situation where tenants ALSO can't afford to leave... but have to anyway.
Why should anyone be forced to leave just because someone richer wants to move in?
You don't have to support someone being unable to evict people who don't pay to believe that there should be limits on how much landlords (or the state, in the case of prop 13) should be able to force current residents to leave just to make a quick buck.
> Why should anyone be forced to leave just because someone richer wants to move in?
This triggers my other frustration: empty nesters. They continue to live in great 3-4 bedroom homes that are amazing to raise a family in (near job centers, plenty of bedrooms, tight community, near good schools). This forces people like myself to spend 85+ minutes in a car (away from my family, friends etc) everyday while I drive past all these amazing empty homes.
Yes, if you’re not using the space efficiently, GTFO and let people have the space! Let dad have more time with his kids. Let the tech bro that created 10m jobs and have more time with his wife and kid. Let people burn less fossil fuels to get to work.
Rent-controlled/prop13 grandma needs to find another place to live for the next generation.
Someone living alone in a rent controlled unit paying below market rates is much “richer” than a family of 4 paying 5x more cramped into a 2 bedroom apartment.
Many of those grandmas would love to move to a smaller house or apartment in their neighborhood, but paradoxically cannot afford to do so. Blame the system, not the individual who has to make rational decisions for themselves within it.
Maybe you could offer a trade. Swap your home for theirs and pay them some rent for it.
AFAIK, you're not allowed to sublease a rent-controlled unit.
If they own their home, many old people made their bag and aren't interested in being landlords in retirement.
It sounds like you're living in a badly governed city. Have you considered voting for politicians with an abundance agenda? Or moving to a city with more intelligent housing policies such as Dallas?
NIMBYism and single-family zoning are alive and thriving in Dallas; what Dallas has is this thing called a huge-fucking-flat-prairie all around it that means Frisco, Addison, etc, have been able to add to the low-density car-centric sprawl and help keep prices down some.
(But even then, plenty of Dallas residents have been upset in the past decade by what happens to rental prices when a bunch of higher-income folks move to town!)
One wonders why the people who don't want to have to leave a city like San Fransisco just cause some other people have more money than them and want to raise their rents out of their reach are the ones who should move to Texas. Why shouldn't the would-be newcomers just be the ones go to all those cookie-cutter new developments?
If you jumped back in time 20 years ago and were able to ensure that YCombinator, OpenAI, Anthropic, Salesforce, and other high-paper-valuation companies, and they all had imported their from-out-of-town high-income-or-equity-leveraging employees to McKinney, Texas, not much materially would prevent those companies from still doing what they did. But people who already lived in SF or on the peninsula but didn't own much land there would have a materially better standard of living due to their costs not running away from their existing incomes. And the Texas burbs happily would've built a shit-ton of houses and apartments for the startup workers, because of the aforementioned giant quantities of near-empty land. Greenfield businesses for greenfield real-estate. Much better fit than force-transforming cities.
> One wonders why the people who don't want to have to leave a city like San Fransisco just cause some other people have more money than them and want to raise their rents out of their reach are the ones who should move to Texas. Why shouldn't the would-be newcomers just be the ones go to all those cookie-cutter new developments?
Because my money should be just as good as yours? Why should you get a huge discount just because of where you were lucky to be born? I'm not asking for a better deal than you, just fair competition between equals.
> And the Texas burbs happily would've built a shit-ton of houses and apartments for the startup workers, because of the aforementioned giant quantities of near-empty land.
For first 100, sure. Then they'd complain about the newcomers changing the character of the place and ban new buildings. The same thing happens everywhere, you can't route around it by starting your own new city because as soon as you've built any kind of community you have the same NIMBY problems as every other city.
> Because my money should be just as good as yours?
You have more money than me, so you deserve to take my place? That’s pure entitlement and leads to cities comprised entirely of millionaires.
This assumes the supply of housing can't increase.
What mechanism do you propose instead for allocating scarce housing?
> I guess they think I should save up a few million dollars to buy a condo or abandon my community and move to the boonies.
If you can't afford to live in your city, what distinguishes you from the people in the boonies? Why should they be relegated to the boonies while you successfully game the system?
I can afford to live in my city. I’m living in it right now! The nice thing is that I don’t get pushed out by arbitrary economic fluctuations completely out of my control.
If only we could all get free protection from economic forces we don't control.
That kind of insurance is usually pretty expensive. Why should you get it for free?
Why shouldn't everyone get everything for free that can be provided for free? Forcing other people to pay a cost because you paid a cost is just sour grapes.
It can’t be provide for free, that’s the point. Mitigating risks has costs that you are ignoring. Those costs aren’t cheap and someone has to pay for them.
What's the cost? Is there some reason productive economic activity can happen only if rich people are allowed to steal SF?
Except it's not free. It's free to you but not others.
> If only we could all get free protection from economic forces we don't control.
> That kind of insurance is usually pretty expensive. Why should you get it for free?
Protecting its constituents from the whims of out-of-town money seems like an excellent purpose for a local government. Especially if some of that money wants to move in so badly that it can be very profitably taxed!
Why shouldn't local government try to serve its constituents like that?
Because I'm rich, and I want to live in SF dagnabbit, and how dare the (checks notes) existing residents of SF vote to block me from taking one of their apartments that I obviously deserve to live in more than they do because I'm rich?
By that logic, we should let the Ohlone tribes underbid all existing residents. They too are just rich assholes who displaced those that were rightfully there before them.
Are they there right now? Then they're covered by rent control laws.
I mean… you said it, not me.
One, we vote for it, and there's far more renters out there than owners. Sorry.
Two, there are many "free protections" that are taken for granted at our stage of civilizational development. Should fire departments be privatized? Police? I'd argue that housing security is even more important than those. We bear the costs together so that our lives are collectively better.
Three, your entire framing is kind of bananas. Rent control is neither insurance nor expensive, but a cap on landlord profits. If anything, it's unbounded profiteering of basic necessities that's actually "expensive."
> there are many "free protections" that are taken for granted at our stage of civilizational development. Should fire departments be privatized? Police? I'd argue that housing security is even more important than those. We bear the costs together so that our lives are collectively better.
But we don't. Everyone who works in the city is paying the costs, while the lucky few who moved in decades ago are the only ones who get the benefit. If everyone got to pay the same level of rent then I'd maybe support it, but there's nothing "collective" about the people who got here quicker protecting themselves while pulling the ladder up behind them.
> Three, your entire framing is kind of bananas. Rent control is neither insurance nor expensive, but a cap on landlord profits. If anything, it's unbounded profiteering of basic necessities that's actually "expensive."
It's got nothing to do with profit; if there are x homes and y>x people who want to live in them, either you give them to the x highest bidders, or you unfairly screw some people over. Rent control is one form of option B (there are others).
> If everyone got to pay the same level of rent then I'd maybe support it, but there's nothing "collective" about the people who got here quicker protecting themselves while pulling the ladder up behind them.
I'm very sympathetic to this sort of framing, but I don't think that's happening here. Or if it is, then pulling up the ladder is a pretty reasonable, rational thing to do when you're protecting against other people climbing that ladder and throwing you back down to the ground.
I moved to my city less than three years ago, not ten. I was not “lucky” to get my rent-controlled apartment: just had some foresight and was diligent in my search. My rent is high, but not as egregious as what the recent AI migrants are paying. (New upstairs neighbors are literally paying $2000/m more than we are for the same floor plan.) Thankfully, I have no fear of getting kicked out of my home due to a sudden rent spike, so I can focus on building a life.
None of this seems egregious to me. Yes, existing residents are prioritized over new residents. This feels like an obvious tradeoff if you want to maintain community and QoL. The alternative is prioritizing the rich — landlords and wealthy renters alike. I do not want to live in a city where money has the final say.
If there’s not enough supply to meet demand you have to ration by some means.
I’ve seen money, place of birth, sexual favours, lottery, length of tenure as options to ration. What do you think the best way is?
Correct me if I'm wrong, but your comment suggested you'd be unable to afford market rent.
I can afford to live in my city because my landlord isn’t able to tack an extra $2000 to my rent due to the sudden influx of AI bros.
Pity the boonyman who was afforded no such luxury
Are AI bros infesting the boonies now
> The only effective way to protect tenants is to set public policies that encourage new housing development
Which the local landowning population promptly block with NIMBY tactics. Have you wondered if that has any impact? Not everything is some progressive boogeyman.
I have friends and coworkers that want to have rental properties, and I advise them it's not worth it.
I don't want to be in a position where I have to pay more to fix damages than I collectected in rent if I accidentally rent to deadbeats. Or in a position where I have to provide services to someone not paying me.
One of those friends has parents that rented out their old house to deadbeats at the top of the housing market instead of selling it. Those deadbeats have been nothing but trouble and yet my friend still wants to be a landlord.
Somehow the idea of owning rental properties became a pervasive notion in the U.S.
Wage theft is the number one form of theft in the USA at around $15 billion. Hopefully you advised your friends to avoid working for wages as that is the number one way to be ripped off by deadbeats in the USA.
Somehow the idea of working for wages became a pervasive notion in the U.S.
https://www.denver7.com/news/national-politics/the-race/wage...
Landlords typically have insurance coverage for damage by tenants, including lost rent.
It’s hard for new landlords. People that bought houses to rent compete against property owners of paid off homes or people with 3% mortgages.
Tacking on optional insurance products on a property that’s already in the red further encourages landlords to push up rents prices.
Well yeah, it's also hard for any random person to start an oil conglomerate having to compete against ExxonMobil
This form of insurance is exceeding expensive and exceedingly rare. Large buildings self-insure (by having a ton of doors) and small landlords don't want to pay it.
Depends on the country I guess, but in France it's about 3% of the rent.
For that price they will pay you the rent if the tenant is not paying, and take care of the getting paid by the tenant.
If landlords don't want to pay that, then they accept the risk of having to deal with a tenant who doesn't pay.
> especially in these large cities with kooky renter protections that make it nearly impossible to evict someone
The problem is that there will always be more voting renters than voting landlords. So in a purely democratic system, policies which favor renters at the expense of landlords will always be supported.
And that said, some renter protections are definitely needed, because there is a subset of landlords that engage in flat out illegal behavior.
Deposit withholding, making illegal demands, illegal renter selection practices, etc.
Imho, that tends to be concentrated in the "1-5 unit" landlord range, because those landlords are usually (a) not lawyers & (b) treat their properties like pets instead of a business.
> The problem is that there will always be more voting renters than voting landlords. So in a purely democratic system, policies which favor renters at the expense of landlords will always be supported.
I don’t know about that… the voting landlords (NIMBYs) sure make it a point to reduce development “to preserve their neighborhood character”.
You're conflating landlords with property owners as a whole. There are a lot more people who own and live in their home than there are landlords. Homeowners are less likely to favor pro-landlord legislation than landlords themselves, and many may even strongly support pro-renter legislation (like myself, though I agree some of the pro-renter legislation certainly goes too far).
The NIMBY "character of the neighborhood" phenomenon has nothing to do with landlords; that's a homeowner thing.
Landlords might be anti-development because a constrained housing supply means higher rents, but that's something else entirely. And if NIMBY homeowners magically stopped being NIMBYs tomorrow, we wouldn't even bother talking about NIMBYs anymore, because NIMBY landlords wouldn't have enough political power to matter.
The way to handle this, which no one seems to be willing to face, is to make laws that are not wealth-neutral. If you are a mom-and-pop landlord (with a relatively low net worth), your should have more leeway in dealing with tenants. If you are a large landlord, you should have very little. Couple this with ruinous penalties (e.g., full forfeiture) for attempting to hide the true beneficial ownership of the property.
In many locations, this exists in practice - especially if you rent parts of a building that you reside in (one half of a duplex or 1/4th of a quadplex, etc).
In some cases, anti-discrimination laws don't even apply.
If you think the Reddit communities of tenants are bad, you should try reading the Reddit communities of landlords (at least the UK ones).
Yeah.... So many bad tenants. So many bad landlords... So many weird laws protecting and hurting both.
What if we shifted to a different system?
Then housing couldn't be used as retirement savings and the economy would collapse immediately
A creative solution! What if we rethought what "retirement savings" is and should be?
Impossible beach you'd have to convince everyone to give up theirs
The question that many do not want to think about. We (as a society (referring to all Western Liberalism, not just the US)) are so thoroughly convinced that Liberal Democracy is the End of History, and it's the 'flawed but best,' as many say, but refuse to imagine something better.
It's puzzling that a system that is supposed to reward creativity and genius like capitalism limits it's inhabitants in their imagination when it comes to how one might structure society.
I don't claim to have the answer, and _no,_ my issues with Liberal Democracy/Capitalism don't mean I'm a communist / socialist / thing-people-don't-like.
It's not Liberal Democracy that is the problem but a society where all of the slack has been optimized out, every extraction maximized, every infraction forever a scarlet letter on an individual, zero stability but constant crisis inflicted on individuals. There is no room in modern day America for people in the margins. Society needs to make a place for them and a path out of constant crisis, or the homeless problem will continue to grow.
Another hidden issue in the USA is many households are dependent on contributing income from a retired/disabled/working past retirement age elderly parent/family member. Those people are going to start passing in mass, and a lot of households will become even less resilient.
What would you like us to imagine? So far everything that we've tried at scale other than liberal democracy and capitalism has inevitably led to war, famine, and genocide. Western liberalism appears to be the only system that empirically works. Some would claim that "socialism with Chinese characteristics" works better, but if you look below the surface prosperity in first-tier cities the actual economic situation is rather grim and the human rights situation is horrific.
Arguably, benevolent dictatorships tend to be the best. Singapore is a good example.
The trouble is making a system that can guarantee the "benevolent" part in the longer term.
Make an argument, beyond one city (if it's true there - Singapore might be better off, on some of the best real estate in the world, with free elections)? All the most free, wealthy, safe, creative, innovative societies in the world are democratic.
And on what basis does some dictator get to tell others what to do? OK, I am the dictator and I'm telling you to give me 10% of your income and never post this nonsense in HN again. :)
There are a lot of values there that.you're presenting as though "this is what society should be" when it's actually "this is what liberal democracy thinks society should be". So obviously we have a foregone conclusion.
Plenty of societies happily trade away one or more of those values for other values.
That's not an argument: You don't specify which values, don't address my argument, and just repeat an old trope of dictators and their apologists with no support.
> Plenty of societies happily trade away one or more of those values for other values.
Which ones? Let's hear some evidence.
People around the world strongly embrace and defend their freedom, including self-determination; the idea that it's not universal (in any meaningful sense) has little support. It's embraced wherever people have the opportunity in Europe and N. America, in East Asia, in China (Taiwan, and also Hong Kong until it was taken from them), S. America, SE Asia, South Asia, a variety of places in Africa, ... you can see the mass protests in Iran, the Arab Spring, etc.
And rationally, again, why should you or anyone else tell me what to do? On that basis, why can't I just as well tell you or them what to do?
Human rights' universality is essential - without it, it's just people fighting for power. That's why it's so important, and that's why those who want to control others try to attack the universality.
Democracy isn't freedom. It's quite easily possible for a democracy to be non-free (many current examples) or for a non-democracy to be free (not as many).
We're really splitting hairs, for no purpose other than to avoid the point.
You'd better start standing up for freedom instead of toying with oppressors. Nobody will do it for you.
If everything but liberal democracy and capitalism lead to war, famine, and genocide, and we're currently trying capitalism and it's not working, then maybe it's time to try liberal democracy
This is a bit of an intentional result, no?
the goal is for peoppe to own the places they live in
Why should that be a goal?
To discourage rent seeking behaviour?
Because every human being needs shelter?
Having shelter is not the same as owning real estate.
In my city, and I assume many others, there's an informal landlord's group that shares lists of problem tenants to avoid renting to. While problematic, I wonder if it's made any impact.
Usually this is handled with credit reports right? It’s only when the state forbids landlords from demanding credit reports that informal networks are necessary.
In general as a tenant you can only get away with not paying rent once (until eviction happens, no one will ever rent to you again without federal or state assurances), and as a landlord you will only skip the credit report requirement once (because your first tenant is going to be a deadbeat who screw’s you).
In cities with excessive tenant protection laws, sometimes landlords will negotiate agreements with deadbeat tenants in which the tenant agrees to leave and the landlord doesn't report anything to the credit bureaus.
Credit reports do not have a section for "plays music loudly" or "secretly smokes by the bathroom window".
They can have a section of public records if anything rises to the level of filing with the courts.
And for things that don't arise to that level, but would still be massive red flags for prospective tenants?
Why's that anything to do with you. Call the cops.
"I had a problem, and I thought, 'I know, I will call the cops!' Now we have two problems."
When the people is your car got stolen, you have two problems
When the problem is lower class people are playing music too loud, the cops will solve it one way or another.
There's a limit to every city, and just building new infrastructure won't solve everything. It always lags behind demand and there are space constraints, budget constraints and countless other limitations.
At the same time, expectations keep rising for everyone (myself included): not wanting to spend one or two hours commuting to work, not wanting to live 45 minutes away from a large supermarket and not wanting to spend three hours or more just to meet friends or family among others. The problem is that it simply doesn't scale, and every country/city faces different challenges so there is no single universal solution.
I'm afraid the real discussion can't happen outside of small circles at this time because it'd involve highly controversial topics that much of the population in Western democracies (can only talk about what I know) isn't ready to confront. We have deeply ingrained ideas that are difficult to challenge so instead we'll probably watch cities fully collapse before anything.
What makes you think our currency cities are anywhere close to the limit you propose?
i occasionally come across some of the forums and online groups of landlords and the things they have to deal with, particularly in cities with strong protections for the tenants and its interesting to watch the perspectives.
on one hand i feel for some of the landlords who have to deal with some of the very real slacks who go out of their way to be difficult tenants.
on the other we’re talking about homes, by this i mean to stress home over investment. i think we’ve made a terrible mistake in incentivizing people to use homes as an investment. it should be difficult to evict someone from their home, and it should be risky and a pain in the ass to use someone else’s home as an investment.
i feel bad for _some_ of the landlords but from a larger societal perspective we’re going to look back at incentivizing so many people to invest as a landlord as a massive mistake.
The landlord can divest themselves of the property. It's also ok if people lose money on investments. I don't think you have to feel especially bad for landlords.
> It's also ok if people lose money on investments.
The more likely it is for landlords to lose money on the housing provided, the more rents will go up to account for that risk premium. It's no different than risk-return calculations for any other investments such as stocks.
> We have to consider what the unintended consequences are of public policies or practices where there are no immediate consequences for someone who falls behind on rent
> Many [landlords] say they don’t actually intend to evict anyone, but that filing these cases is the most expedient way to get emergency rental aid from the city.
Economics in one easy lesson: incentives matter.
While that is certainly true, it's a very narrow view disconnected from the reasons for the policies. The most likely explanation for more people not paying their rent is that even fixed rents have become increasingly unaffordable because other costs have risen faster than wages. So yes, people are "choosing" not to pay rent because the consequences of not paying the rent lag substantially behind the consequences of not eating or buying gas. But it's an absolutely rational decision. FTA:
>...plenty of economic indicators suggest worsening financial duress for people already struggling. Costs are going up faster than wages, and inflation that took hold after the pandemic has proven painfully persistent.
>plenty of economic indicators suggest
> — and no one's sure why
Now that i saw the framing, i am looking differently on the discussion here. The smalles troublemakers are more news worthy than broad economic factors behind us all, so you dumb down your headline...
Social housing in the West is rewarding the bad habits of the people under the pretext that they need help. Every social housing place a like wound in the city and normal residents run away from those areas. People revolt when they hear of any plans to setu0 a social housing building in their locality.
Why this happens? That's because, the housing problem give the opposition a weapon to use against the ruling party, constantly hitting out and winning the sympathy of people. The incumbent administration has no other choice except pouring money into social housing and show that they are doing something to address the issue. No one cares about the actual fall out of this philosophy.
Just one of the evils of vote bank politics.
the article said asset managers claimed rent collections went from 94% to 89% - wow such a drop! they fail to highlight that these assets are theirs to own indefinitely!
All slack has been removed from society. All pricing has been maximized. Every interaction capitalized. Every point of extraction extracted from.
People living in these situations now live from crisis to crisis. Not paying rent/dealing with the consequences is just another on the list. At some point people just become numb. Modern society at the peripherals is not sustainable. There will always be people in the peripherals, but society is now structured to require middle class type stability as the bottom baseline for an individual to survive.
and the middle class is being destroyed
Has been. You could've said that 10 years ago, but it's completely gone now. People you think are middle class are probably just upper lower class.
It sounds like an ad-hoc rent strike. Not a great sign for an economy.
If history teaches anything, it's that people are so afraid of striking they only ever do it when the alternative is death.
Why isn't it automated yet? You delay your rent and your door key stops working.
Also perhaps there should be a new field for startups (yes i'm aware of 'proptech' but there has to be more than that), that will collect dirt on tenants to threaten them with legal consequences unless they pay.
Good idea. Also a robot drone should come and sell your stuff on eBay.
Every day I doubt why I even bother reading this site. Then anovikov reminds me why. It's so I can keep on top of the creativity/depravity my fellow engineers are capable of.
> Why isn't it automated yet? You delay your rent and your door key stops working.
1) Because screw you, that's horrible and you shouldn't do it.
2) Because all these digital key systems are horrendously insecure and much more open to thieves and crackers than than a plain old door key anyway.
(1) - what's horrible? renting out flats is a business. not paying the bills shouldn't be tolerated, ideally shouldn't be technically possible.
(2) is negated very simply - have both old door key AND digital security key which auto closes if there are unpaid bills for say more than 5 business days.
> Why isn't it automated yet? You delay your rent and your door key stops working.
Cyberpunk: Edgerunners has an excellent scene where something like this happens to a kid down on his luck.
and in cyberpunk 2077 there are neon signs above each apartment door indicating rent payment status, gotta bring public shaming into it too. This is the future our loyal soldiers for capitalism fight for on this platform in every thread lol.
People can't afford to live and food comes before paying your landlord? Economy is fucked right now. Income inequality pushes any gains into the hands of the wealthy.
And frankly, more and more people are willing to stuff their landlord if they feel their landlord isn't holding up their end of the deal.