Why Are Rents Soaring Faster Than Wages? | DW News

Rents are rising rapidly around the world, outpacing wage growth and creating a significant affordability crisis. This alarming trend is driven by several factors, including pandemic-related disruptions to construction, leading to a shortage of rental housing. Rent control measures often discourage investment, worsening supply problems, while central banks' interest rate adjustments impact housing markets. Proposed solutions focus on encouraging development and expanding the build-to-rent sector to increase housing availability. DW Business' Rob Watts speaks to Liam Bailey, global Head of Research at Knight Frank, to explore the reasons behind this trend.

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[presbiteroo]

This guy: Rents are too high, but not high enough to foster development.
The mental gymnastics he does not to admit that leaving it to the market doesn't work.

[SA-ksvz]

There has been a priority for building only expensive units, and middle class needs have been depleted. Comes down to prioritizing profit over people, which is why government needs to regulate and penalize this practice.

[markbondurant]

Too many ultra-rich speculating, which is why politicians won't do anything about it.

[fintamaria]

The Social Houses are Abandoned with intention... Those who decided to finance these Cartels organized by these Landlords should be held accountable, They have a sure aim to enrich themselves from the poverty of the Workers!!!

[eksbocks]

In the old days: Being a landlord meant having a spare building in the yard to rent-out.

Now it's a "Get rich quick" scheme. Instead of turning to regular investments like normal people do.

Too many wannabe rich people owning "Investment" properties.

And almost nothing set aside for Working Class people. With the only exception being Helsinki, Finland.

And their low rate of homelessness is so obvious. Compared to other countries.

[bennpierce]

This guy never even mentions that massive industry groups of landlords have started using an A.I. driven algorithm for anti-competitive price-fixing. Oh no, don't talk about that.
He just goes on about how government intervention is counterproductive and how lower rents for folk take away the incentive for developers. Totally supply-side point-of-view.

[presbiteroo]

If the market isn't working to build what society needs, tax the rich (on their assets, not income) and build social housing.

[t.m.]

I think that renting appartments/houses should be illegal. Either you use it, or you sell it. Simple as that.

[Andre-qoek]

greed is the problem.
housing should not be commodified.

[jon]

I live in Honolulu and work in banking. Prior to covid I had the 20% down payment in cash and credit history for my own condo but my income was not sufficient to meet the mortgage at very low rates which would have been the best time to buy. During Covid I was offered a better job with higher pay but now the prices for homes have increased, the mortgage rates have also increased and I am back to the same problem of not having sufficient income to cover the mortgage. I currently live with my Mom in the family home that is mortgage free. She told me not to worry about it because one day I will inherit one of the family properties anyway so there is no point in stressing to buy a home. I'm taking advantage of high yields on safe returns right now and using the monthly interest income as extra disposable income to enjoy spending on my mother, myself and the family dog.

[josephkuzminski]

How about the AI tool ( RealPage ) helps landlords collude to keep rents high?

[hybridstryker]

Bro everywhere and everything is expensive bro So depressing

[TheAlchemistZero]

Civilization has entered late-stage capitalism.

Capitalism is an insatiable hunger, one which is inherently incapable of expressing the concept of "enough" - it's a system that must chronically engorge (without pause).

Poverty is the mother of necessity; the comfort of the rich, depends upon an abundant supply of the poor.

the Alchemist
-Ø1

[detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank 😊

[GS-oovh]

demand is too high . consequence of open border

[frisbeeshawn]

Back in the 70's prices were lower for everything and it worked just fine. When technology came about and you could press a button on a phone to make a payment the greed started. ...

[chaoticallysay]

Why?! They havent given us solar yet?! Why do I have to pay more?? Idk if they would let me have solar I wouldnt complain!!!

[Jen-e-sis]

So many world wide even in Canada are having a hard time keeping up with the rise of living costs vs rent increases, so many are one rent increase away from being homeless.. it’s that serious in Canada 🇨🇦

[keewng]

Rent rises, maybe Both European and UK Governments should make Laws to order Global Assets Managers to stop speculation of Rental Homes and get out of market. In UK Assets Managers are building their Rental Homes portfolio and give and take ten years both EU and UK Governments would have to use Taxpayers money to fund Assets Managers shareholders "rising yearly Dividends".

[ThelastREALAFRICAN]

Put a quota on how many big corporations can buy