Why Is the Rent So Damn High? The Real Reason Will Shock You

Landlords are being sued for using illegal price-fixing to drive up rents across the country. They allegedly conspired with RealPage, a tech company, to use non-public data to artificially inflate rents. Rents have spiked by 26% since the pandemic.

Correction:
0:17 The Moderne was sold in 2022. The current owners claimed in a statement to MPU that they have never used RealPage RM software. In a previous statement, AMC, the management company for The Moderne, said it only used the software for one property in its portfolio. AMC has been accused by the Arizona Attorney General of using RealPage to coordinate rent price increases.
5:10 After publication of this video, RealPage added a disclaimer to the website that said it "provides publicly available property-specific information without regard to whether the properties are RealPage customers."
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[DonaldMark-nese]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[kortyEdna]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[Beatricegove]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[Aarrenrhonda]

People who are partially homeless in the United States and live in cars are the product of a complicated web of interrelated factors. This problem is fueled by high housing expenses in relation to income, stagnating earnings, and income inequality. A lack of affordable housing, medical costs, evictions, job loss, a lack of social support system, and structural issues and insufficient policies all contribute to the phenomena.

[ThePoliticalBulldog]

Be a shame if someone hacked Realpage into oblivion.

[SeanTalkoff]

Isn’t it crazy how mortgage rates continue to rise with higher imports and declining exports? meanwhile the FED is yet to lessen cost. Something will eventually break if they keep raising interest rates and quantitative tightening

[rebelalliance]

Your rent is so high you can’t afford it
and then the supreme court makes homelessness illegal

[ryanwilliams]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[KissyKaede]

Stop corporate ownership of housing. Stop Blackrock.

[CameronFussner]

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people—at least in California, where I currently reside—are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

[stevenwalker]

Where I live, average rent is between $1500 and $2000 per month. Pre-pandemic it was $700-$1500 per month. Collusion? Yes.

[tonysilke]

It's surprising to see landlords taking such drastic measures. I wonder what's causing it.

[PersonalPariah]

"We're not price fixing... we're just setting the price and punishing landlords who deviate from it."

[prazcuray]

One of the reasons home ownership has gone down, it’s damn impossible to save up for a down payment when they keep increasing your rent every time you renew.

[NonoNonaa]

I can't wait to hear about the $10 fine they receive for this!

[MikeCasey-zm]

The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.

[MythicalWorx]

I hate this. Every time a corporation gets caught they try to settle for way less than they took. I hope they don't settle so we can get accountability and have the company's reputation dragged through the mud for months, then pay out a huge settlement. We need real justice against our corporate captors.

[mattroberts]

50% of your wage to be allowed a place to sleep = indentured servitude for future generations.

[TheBigdog]

Please stop calling them landlords. They aren't landlords! They're private equity firms with unlimited cash. They can sit on a property indefinitely without a tenant, and it makes no difference to them, unlike a real landlord who relies on cash flow. This is what's driving up prices. They could price a 1 bedroom at $10, 000 a month and never get a tenant, AND THEY DON'T CARE because they don't need the money! It's just a write off to them.

[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.