Hello! Welcome to Todd Miller TV. Today I wanted to talk about a subject: Why rents are rising? They’re definitely going up. You probably are saying: “I thought we have a housing crisis, there’s all these houses on the market; and the Government’s gonna help us by like, taking them from us and renting them out.”
And I’m gonna, First I’m gonna explain why rents are going up. Let me explain why that’s a really bad idea.
So, first of all, Rent rates is just a result of supply demand. It’s essentially supply of housing, demand for rents by tenants. Okay? Well we have, the supply of houses hasn’t changed. We have the same number of houses we’ve had in the past. New builders aren’t building new ones, were not turning any down. The housing market is the housing market.
What’s happening is we have less owners, we have more tenants. We have more tenants naturally means they have, there’s more of them. So therefore rents are gonna go up because people are now gonna, it’s easier to rent houses out. You just raise the rent a little, you still get a tenant. Though your pricing will wait but, aren’t investors buying these same houses and just re-renting them? Yes! But remember there’s inventory of houses, a lot of them. That aren’t even available. Because the banks can’t foreclose, or they haven’t foreclose ’cause of pressure from the Government. So, Government is “helping us” by not letting the banks foreclose. But then in turn, we don’t have a house we can rent out.
So, Government’s gonna fix this. ‘Kay? And what the Government’s gonna do is, They’re gonna take these houses from the banks I guess, I don’t know! They weren’t specific. And they’ll rent them out themselves. The houses that aren’t in the market. That causes a couple problems
Here’s problem number one, biggest problem! If you’re a homeowner, you’re trying to buy a house, and you’ve bee looking around, writing offers with your agent, not getting/getting out-bid by these cash investors, it’s gonna get worse! Because now, there’s gonna be less houses available. The Government takes houses that are available. In Las Vegas we have between two and three months of puchasible inventory. So the Government comes in, it takes any more houses from us; what’s gonna happen is, that homeowner who’s trying to buy a house, not able to buy a house ’cause some investors gonna walk in and go,”Oh, they’ll get an FHA loan, I’ll pay Cash.” And whoever who sells the house would “I’ll take the cash offer.” Because gosh, that’s cash. ‘Cause you know, I don’t have to wait forty, 5 days or two months for Loan. It could just close in a couple of weeks and I get my money.
So, Investors are gonna own the Market place, Home owners will be shut out, and no one’s gonna benefit.
Okay? So the Government will Loan the houses, the people will be paying rent to the Government. Investors will just go buy the rest of the houses that are available, and homeowners/people who wanna buy houses will be totally shut out.
You know, It’d be different if we have like a year of supply of inventory. But we don’t! We have a very small supply of inventory here in this market. Other markets in the South West are the same way. That’s really the basic reason why rents have increased. It’s just supply and demand. We have a lot of tenants and not a lot of houses available.
It will work itself out on its own. Any interference from outside sources at this point are too late and aren’t gonna help. That’s just my opinion! And that’s why if you’re having a hard time buying houses as a home owner, that’s the reason why. ‘Cause rents are going up and investors are excited ’cause they’re making money.
So, that’s my update and hope to see you on the future video. Thanks!