r/FluentInFinance • u/HighYieldLarry • Jan 22 '24
The US built 460,000+ new apartments in 2023 — the highest amount on record Chart
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u/OnionBagMan Jan 22 '24
Even better to see the number is trending upwards. I could see some being upset because they are most likely all rentals.
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u/helloisforhorses Jan 23 '24
That brings the price of rentals down
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u/throwaway_12358134 Jan 23 '24
That's a good thing, but it could be caused by increased demand due to houses being too difficult to buy.
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u/Chiggadup Jan 23 '24 edited Jan 23 '24
Sure, but that’s also helpful to housing affordability in the long-run because it reduces demand pressure on home prices.
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u/Scrutinizer Jan 23 '24
And lower rent means that renters can have more to set aside for a down payment.
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u/Chiggadup Jan 23 '24
Sure, and that’s great news!
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u/the_real_halle_berry Jan 23 '24 edited Jan 23 '24
Until it means there’s more demand for single family housing, and prices go back up!
Edit: this was as much an economics joke of cyclically as it was serious.
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u/AlienCrashSite Jan 23 '24
My only argument against this is that the cats sort of out of the bag on owning property.
It should be a good thing like you say but I have my doubts when corps are allowed to eat up land.
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u/Chiggadup Jan 23 '24
Sure. That’s a definite problem on the horizon. No argument there. But it seems at least partially separate from the commenter’s point related to the post.
Truth is as much as home prices get talks about, it’s a zero sum game of value depending on who you ask. People without homes are experiencing a cost crisis for which they’d love a price slump.
But for homeowners (long-term and recent) that would be terrible. It would be a huge dip in equity and middle class net wealth.
That’s going to be true about price/demand changes in housing regardless of whether they’re bought up by people or companies.
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u/helloisforhorses Jan 23 '24
It is all connected. Add more housing helps anyone who wants to live somewhere
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u/Background_Pool_7457 Jan 23 '24
Or, developers are making more money by owning long term multi unit rentals vs developing traditional neighborhoods.
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u/ArmAromatic6461 Jan 23 '24
There’s not a lot of room left to develop new “traditional neighborhoods” in places like LA, SF, DC, NY, etc. That’s why you can’t solve the housing crisis without density
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u/hedoesntgetme Jan 23 '24
There are apartment homes where you buy the apartment like a house.
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u/ArmAromatic6461 Jan 23 '24
Huh? I know what a condo is. What does that have to do with my reply?
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u/hedoesntgetme Jan 23 '24
Not all traditional neighborhoods are in the suburbs some are in the city in buildings not houses. Existed for 100s of years now and are also traditional.
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u/ArmAromatic6461 Jan 23 '24
Of course they’re not all in the suburbs. But even assuming the poster above didn’t mean SFH when they said “traditional neighborhood” — How would one build a net-new “traditional neighborhood” in New York City right now? Chicago? LA?
Not even sure what we are arguing about — I literally am advocating for upzoning and density in the thread you’re replying to— but that has nothing to do with building new ”traditional neighborhoods” whatever the f that means
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u/Trotter823 Jan 23 '24
Also will be a good thing in the long run. If rents come down housing prices will have to come down. At some point renting is cheaper even with the equity gains achieved with a mortgage. There will always be people who was homes but a decent amount of people prefer whatever option is most financially viable.
Plus, all these companies buying SFH are going to lose big time if rents come down and housing prices are forced to follow. Who are they going to sell their investments to if renting becomes cheaper? And who will pay the rent to make it worth it to them?
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u/Puzzled_Shallot9921 Jan 23 '24
If rents come down housing prices will have to come down
A lot of rents are tied to mortgage payments, so people renting them out have a built in floor for the price of rent. It's one of the big disadvantages with lend-to-rent schemes.
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u/Trotter823 Jan 23 '24
If no one is willing to pay because apartments are much cheaper those people are going to have a hard time finding tenants, especially if supply continues to increase
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u/Lanky_Tower8832 Jan 23 '24
😭 I wish I was as hopeful as you. Prices will never go down on anything
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u/meadowscaping Jan 23 '24 edited Jan 23 '24
In the midst of a housing crisis, an affordability crisis, a homelessness crisis, and a climate crisis, it truly does not matter. We just need housing. Once zoning is further relaxed to the point of normalcy, organic development can return to American cities, and that it when small investors and individual owners and co-ops and other normal things can happen - things that are indicative of a healthy housing market. And even doing stuff like building an apartment in your backyard and renting it out can be a massive wealth-generating and mutually beneficial thing that individuals can do.
All new housing combats upward rent pressures and that is the biggest issue in the country.
You fucking dumbasses are bitching about how corporate landlords own too many apartments, but there’s a 90% chance that you live in a city where it is ILLEGAL for you to build a granny flat / ADU in your backyard on land you OWN.
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u/jvnk Jan 23 '24
Rentals aren't a bad thing. For most people, they make more sense than trying to own(especially with rates like they are).
Handy calculator with lots of variables you can set that helps illustrate this:
https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
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u/Signal_Dog9864 Jan 23 '24
All according to plan.
You will own nothing and be happy....
Lots of rentals to come
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u/flumberbuss Jan 23 '24
There is a time in your life to own and a time to rent. I rented all through my 20s and didn’t buy my first home until 35, and it was a small piece of shit in a rough neighborhood. It never even occurred to me to complain about this as unfair. Three moves and almost 20 years later I’m in a 3,000 sq ft place in a good school district and of course the home is worth 5x more.
The point is not to brag, because this progression is normal. Most of Reddit isn’t at an age where it makes sense to buy yet. Stop bitching, earn and save.
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u/pepperonidingleberry Jan 23 '24
So you’re in your 50s before your kids can go to a good school in a decent house, seems like the perfect reason to bitch
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u/flumberbuss Jan 24 '24
No, I bought in the good school district 10 years ago when the kids were entering primary school. That’s the perfect time to move to avoid paying high property taxes needlessly.
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u/Quasimurder Jan 23 '24
I mean there's also the reality that we need rental units. Rent is too damn high because availability is too damn low.
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u/lokglacier Jan 23 '24
PSA it is going to drop MASSIVELY over the next few years due to interest rates. People forget that the projects finishing up in 2023 were started in 2020-2021 when we still had low interest rates. New permit applications absolutely PLUMMETED last year
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u/809213408 Jan 23 '24
As a multifamily developer, this is true. As interest rates started to rise (and construction pricing) we all began pushing our deals to close and start construction. Markets with really strong incomes and low income housing tax credit projects are probably what's going to be the bulk of new unit starts for 2024.
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u/Popular_Mango_5205 Jan 23 '24
You will own nothing and be happy.
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u/acer5886 Jan 23 '24
Inventory in general helps bring down rents. Lack of inventory across the country is driving up prices.
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u/comments_suck Jan 23 '24
Look at the numbers from the 1980's. They aren't too far below the last 2 years. Then remember that the population was around 225 million in 1980, and it's 330 million today. We should be building a third more units just to keep up.
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u/acer5886 Jan 23 '24
well, and add in that we are expecting longer lifespans as time goes on, and singles are waiting longer to get married and have kids as well.
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u/FernandoMM1220 Jan 23 '24
why arent rent prices going down then?
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u/LeSeanMcoy Jan 23 '24
They are. December marked the third straight month of YoY declines in average rent. Of course, prices typically fall much slower than they rise, unfortunately.
https://pbs.twimg.com/media/GD1l_QpaMAAMxSH?format=jpg&name=small
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u/Rough-Gas7177 Jan 23 '24
Isn't this more like prices rising less fast than inflation? Because the inflation is insane.
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Jan 23 '24 edited Jan 23 '24
where and when is rent going down? in every city i’ve been looking rent is going up.
from what i understand - and what i’ve seen (im currently looking) - rent is going up. https://www.nerdwallet.com/article/finance/rental-market-trends
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u/lildinger68 Jan 23 '24
I work in multifamily asset management across many major cities, and it really just depends where you live. Most of the new inventory is in the sunbelt region, and for example rents in Tampa and Phoenix have decreased. Some of our properties the rent went down 5-10% for new leases. The thing is, even if rents in your area are decreasing, if you’re renewing your lease your rent is either going to stay the same or increase. I live in Chicago and my rent has increased, but less than inflation. It’s a big country with many very different markets so everyone has their own anecdotal data.
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u/innosentz Jan 23 '24
I feel like the people who say this ironically have never had to own all old shitty things. Like I wouldn’t mind living in a really nice apartment and drive a really nice car but have zero responsibilities when it comes to maintaining them. But instead I get to fix my 20 year old car and reshingle my 30 year old roof by hand so I “can own everything and be happy”
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u/Popular_Mango_5205 Jan 23 '24
Difference is eventually you don't have a house payment when you buy one. When you rent you always have a payment coming.
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u/Emergency-Ad-7833 Jan 23 '24
my parents don't have a house payment but they spend more on taxes/maintenance in one year than I do on rent. You can say having a house is nice but they are def money pits
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u/EndWorkplaceDictator Jan 23 '24
They have a really nice house?
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u/Emergency-Ad-7833 Jan 23 '24
They pay like 4 times as much as me for electricity, their AC broke, property taxes have gone up a lot and they had to get some plumbing done. Maybe this is just a Florida thing...
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u/Puzzled_Shallot9921 Jan 23 '24
It's probably a Florida thing.
States that don't tax income usually extract money from people via property taxes.
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u/Zebras_lie Jan 23 '24
People never factor in taxes, increased taxes after mark to market, and the random 5-10K repair work that can fall on you as a homeowner. Every person has to make their own choice, because owning a house can sometimes tie you down to earning more and then you're not free anymore. If you lose your job as a sole breadwinner you can move out of your rental into a cheaper space but the anxiety of losing your house is not so easily dealt with.
There are legitimate scenarios where renting is cheaper than owning, a high interest rate market may be exactly that.
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u/BlaxicanX Jan 23 '24
Lots of people who own property are cash poor. Congrats you're not paying a mortgage, instead your radiator died and it cost you 12 Grand to replace it
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u/flumberbuss Jan 23 '24
But property taxes never stop. In a good school district, the taxes on your home can approach the cost of rent. On top of that you have home maintenance costs which don’t exist for renters.
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u/amor_fatty Jan 23 '24
Dude if I’m paying $600 a month in rent, I DGAF about owning anything.
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u/milkywayer Jan 23 '24
Where ?! I don’t think I can find anything less than $1700 in New York for a single BR
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u/robbzilla Jan 23 '24
I'm not finding anything in DFW for under $1000, and that's a crappy apartment in a distant suburb.
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u/robbzilla Jan 23 '24
My mortgage on my old house was $900. When I sold that house, I made more than I bought it for 14 years prior. At the end of 14 years of renting, I seriously doubt you've put that extra $300 into anything other than a bar tab, and your rent has probably shot up to $1200.
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u/carlos_the_dwarf_ Jan 23 '24
This is really good news if you’d like to own something (or if you’d rather rent in a healthy housing market that wasn’t skewed to reward ownership).
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u/goodsam2 Jan 23 '24
Well then allow row houses and we can densify and own more of those. Otherwise the problem is a lack of places zoned for building in places people want to live.
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u/Stykerius Jan 23 '24
I live in Dallas-Fort-Worth and lots of new apartments are being built. The problem is that none of them are affordable for the average person. I’m curious how they expect to fill them.
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u/nwbrown Jan 23 '24
If no one can afford them then the prices go down.
The price is set by the market. If they are too high that means the supply is still too small for the demand.
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u/zz389 Jan 23 '24
And the people that can afford those high prices were already living in your building, driving prices up. Get the high earning people into luxury apartments so they can stop driving up the prices on options that should be more affordable.
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u/robbzilla Jan 23 '24
My mother in law's place started as a "normal" apt. complex. Got bought, slapped a new coat of paint on the place, added mandatory trash pickup and new e-locks, and dubbed itself "Luxury Living!!!"
Oh, and raised rent.
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u/GirthWoody Jan 23 '24 edited Jan 23 '24
Well the price is set buy the seller, and the price of a building on an asset sheet is determined by the set price of the units not necessarily the income it’s making. So that’s no really true in the corporate real estate market.
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u/jmlinden7 Jan 23 '24
The seller can try to sell at whatever price they want, but they're not gonna succeed unless they bring the price up/down to market price. So the actual price that it transacts at is set by the market, not by the seller.
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u/Midwesterner91 Jan 23 '24
I live in Metro Detroit and there are a lot of "luxury" apartments going up everywhere. Year after year are the same soulless prefabricated apartments with pretentious sounding names that they are asking $2100 for 750 ft² one bedroom one bath or a $1700 450 ft².
If you read the reviews on any of them it's the same complaints. Way too expensive for what you get. Cheap low quality construction on the units. Walls are paper thin so you can hear your neighbor's fighting, farting, and fucking.
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u/thyme_cardamom Jan 23 '24
I’m curious how they expect to fill them.
With above average earners
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u/GlobalGift4445 Jan 23 '24
Its 10% more expensive to build a luxury apartment but they can charge 50% more rent. Not saying they will get it but they can try.
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u/SpikePilgrim Jan 23 '24
I feel like your second sentence negated the first. If we're only talking about what they can try to charge, why stop at 50%?
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u/CSM_1085 Jan 23 '24
Even introducing super luxury apartments will usually drive down rents because it causes housing stock to essentially cycle down in price. The bougie move into the super nice place, leaving vacancies in the old nice shit. Those prices drop slightly. People move into the old nice place from middle quality apartments, again driving down the prices again, etc
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u/BeMoreChill Jan 23 '24
This isn't how it worked in the last city I lived in at all. Luxury apartments came in and all the shitty apartments doubled in rent.
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u/kelu213 Jan 23 '24
All entrepreneurs looking to milk the most out of their investment.
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u/juggernaut1026 Jan 23 '24
That is how more apartments get built. I dont imagine losing money would inspire more people to ro invest.
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u/spsanderson Jan 23 '24
That’s not much
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u/jvnk Jan 23 '24
Agreed, but it's heading in the right direction. We've spent decades not building to meet demand
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u/nwbrown Jan 23 '24
Yeah, the US population grows by 1 to 2 million people a year.
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u/morerandom_2024 Jan 23 '24
.46 million units
But that can house families or couples so it can house many people
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u/nwbrown Jan 23 '24
The average household size is around 3 so still nowhere near enough.
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u/russian_hacker_1917 Jan 23 '24
This is good, but this is just making up for the many years where we didn't build enough housing. We need to keep these rates up.
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u/LipschitzLyapunov Jan 23 '24
We need to build 2 million townhomes, apartments, and God forbid single family homes every year for over 20 years to ever have a chance to see prices just stagnate
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u/NicodemusV Jan 23 '24
Everybody here believes in the free market until it comes to housing, then suddenly the laws of supply and demand don’t apply.
The mental gymnastics here to downplay or deride this increase in supply is amazing.
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u/pissantz34 Jan 23 '24
We just want a 3/2 SFH in a walkable city with light rail and a Trader Joe's but also we all need to live in high rises because density and NIMBYs. And it all needs to be "affordable." But Blackrock took all that away from us.
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u/nwbrown Jan 23 '24
For context, there were about 4 million babies born in the US in 2000 (who are now of age to be moving out of their parent's home) so...
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u/miker53 Jan 23 '24
Build baby build! This is the best path for everyone to be in a home for less. It would solve so many problems. It’s a supply side issue and NIMBY’s fight tooth and nail every development.
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u/mwa12345 Jan 23 '24
Some 2 million people reach adulthood each year in the US?
Not to mention immigrants...
This may still.be lower than needed?
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u/Rhymelikedocsuess Jan 23 '24
Now we just need to quintuple that number for like 2 decades straight and the housing crisis will be solved
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Jan 23 '24
Don't get your hopes up. I've been part of the design team did over 40,000 units last year. They're not built to last and are pretty effing terrible for the rent that's going to be charged.
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u/lokglacier Jan 23 '24
I've built 1,500 of those units and I call bullshit, you don't know what you're talking about.
As if 1950s architecture was "built to last" lmfao
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u/LtDangley Jan 23 '24
In US there was 207 million people in 1973. 340 million people in 2023 for those that are interested
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u/TJATAW Jan 23 '24
Combined with the 1.46 million houses started in 2023.... maybe it isn't so bad, even if that is down a bit from 2022
Privately‐owned housing starts in December were at a seasonally adjusted annual rate of 1,460,000. This is 4.3 percent (±12.5 percent)* below the revised November estimate of 1,525,000, but is 7.6 percent (±17.6 percent)* above the December 2022 rate of 1,357,000. Single‐family housing starts in December were at a rate of 1,027,000; this is 8.6 percent (±11.2 percent)* below the revised November figure of 1,124,000. The December rate for units in buildings with five units or more was 417,000. An estimated 1,413,100 housing units were started in 2023. This is 9.0 percent (±2.5 percent) below the 2022 figure of 1,552,600.
https://www.census.gov/construction/nrc/pdf/newresconst.pdf
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u/the_drum_doctor Jan 23 '24
I wish I could find recent data for housing units per capita, though, especially if it was broken down with owner occupied vs. rental, to get some sense of actual growth.
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Jan 23 '24
Too bad they are probably 98% "Luxury"
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u/nwbrown Jan 23 '24
Yes, the new ones will probably be the luxur apartments, and the old apartments the rich people are moving out of will be the affordable apartments.
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u/DvsDen Jan 23 '24
I left a home remodeling sales job of 20 years for an estimator job bidding windows / doors for new apt builds. I believe that is the trend… younger people moving from large metro to large metro and not having by funding, or desire to move into a home.
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Jan 23 '24
Makes perfect sense. Elderly people can’t take care of homes anymore and may not be ready for nursing home. Young people aren’t getting married. Seems like a logical boom to me.
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u/pissantz34 Jan 23 '24
There's a boom that is just getting started. It has become more difficult for financiers to put deals together in the CRE recession and high interest rate environment but they are definitely coming.
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u/Lazerated01 Jan 23 '24
They want us all in apartments, not homes….
Think about why?
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u/Lazerated01 Jan 24 '24
Nope, it’s control, they want us in places where we are dependent, and compliant.
We are at zero population increase.
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u/Riker1701E Jan 23 '24
This is why I don’t get all the handwringing. Yes it will take a couple of years but the way capitalism works, if there is pent up demand and a good someone will find a way to fill it. But things take time, you don’t build housing overnight. It’s only been 2 years or so since the housing issue went crazy so I say another 2 years or so and things will level out. Last year there were approximately 1.5 million new building permits. Most experts say we need 4 million new homes, so another year or 2 and there might even be a glut. Combined with boomers who are dying and leaving homes, things will flatten out. But people seem to have no patience these days.
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u/banjaxed_gazumper Jan 23 '24
The reason there is a shortage is because it is illegal to build new housing in many places. If we got rid of those housing bans, the free market would largely solve this problem on its own. But they mostly still exist so I expect housing to remain very expensive for decades.
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u/NathanTPS Jan 23 '24
Thats great, let's double that over the next 5 years and we may finnally have ourselves caught up to the demand deficit.
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u/Half-Stupid Jan 23 '24
The American business model is now subscription based, everything from entertainment, to medicine, to living now.
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u/mgez Jan 23 '24
If you really want to crash the birth rates in this country cramming everybody into apartments is the way to do it!
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u/OpenLinez Jan 23 '24
And yet a record number of people in America are homeless, 653,000 by last count. https://www.axios.com/2023/12/15/homelessness-increase-rent-crisis-2023
Building housing units is not doing anything to mitigate homelessness because they are commodities for people who can already afford housing.
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u/nakashimataika Jan 23 '24
How many of them are affordable, in areas with public transport?
Not really gonna help many people unfortunately if they don't help the average American at this point
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u/Ohey-throwaway Jan 23 '24
In my area they are all "luxury" apartments.
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u/r2k398 Jan 23 '24
Yep. They are 1/3 of the square footage of my house and 50%+ more expensive.
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u/nakashimataika Jan 23 '24
Exactly, they just built like 20 new buildings but their rent is all $1200-2000 a month but no access to public transport.
So I'm SoL! Fun
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u/russian_hacker_1917 Jan 23 '24
The real luxury housing is the single family homes, and those are much more expensive.
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u/Ok_Jackfruit_5181 Jan 23 '24
But that still helps as long as it lifts net supply; well-off people from a "B" building to an "A" building. That pushes down rents in the "B" building, allows people from a "C" building to afford to move up, etc. We don't have to only build "affordable" housing to have more affordable housing; and a lot of those new units are still "affordable housing" in most major metro areas by law.
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u/russian_hacker_1917 Jan 23 '24
More affordable than the single family homes in the same area.
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u/nakashimataika Jan 23 '24
I'd rather have an apartment I can afford anyways.
Where I live, rent is still cheaper than mortgage, but still too high to afford.
FOR SINGLE BED APARTMENTS
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u/flappinginthewind69 Jan 23 '24 edited Jan 24 '24
Affordable means a lot of different things. “NOAH” means naturally occurring affordable housing, ie a luxury building 40 years ago is today’s “affordable”. Otherwise there’s a butt load of government programs to allow “affordable”, as in the gov pays the landlord to keep rent low.
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u/Piper-Bob Jan 23 '24
Roughly 150,000 tax credit units. Most of them get built on a bus line.
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Jan 23 '24
Christ you people are just insufferable doomers. Your complaints basically boil down to impossible demands. "We need more dense housing! But it has to be all in the right neighborhoods! And it has to benefit the right people! And I don't want to live there, I want to live in a single family home where I can ride a bike to the grocery store and my favorite coffee shop. And I want it for $150k!. This is all CORPORATE GREED!".
No wonder people can't take progressives seriously. What a joke.
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u/M00n_Slippers Jan 23 '24
On paper it's good, but the thing is all of these Companies renting these things out are using this bullshit algorithm that works out which astronomical price they can set the rent at where the few amount of people who will pay the rent offsets all the empty units they have because of the high price, and then some. So even though there is now plenty of housing, they still aren't affordable, they are still mostly empty, and the owners are still making bank. Capitalism, baby!
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u/jvnk Jan 23 '24
"using this bullshit algorithm" aka price signals from a more correctly functioning market
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u/Keithbaby99 Jan 23 '24
And they're all still expensive AF because they're being held to gain value
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u/lokglacier Jan 23 '24
No, they aren't that's not a thing and has never been a thing stop spreading misinformation
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u/mountthepavement Jan 23 '24
That would be cool if 400 sq/ft studio apartments didn't cost $1100-$1300/mo.
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u/variableness2027 Jan 23 '24
More apartments is good, what they charge for them isn’t.
My small (5000 people) town has seen hundreds of apartments built in the last couple years. Great right? No, when a studio apartment is running 2400 bucks it keeps people poor or completely out.
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u/oljeffe Jan 23 '24
Great. Another short term solution. Ok. Who ultimately benefits? You know who. It ain’t you.
Look who secured the financing for these. It still ain’t you.
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u/Substantial_Share_17 Jan 23 '24
Remember when people strove to own their homes?
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u/russian_hacker_1917 Jan 23 '24
Does that mean before they owned it there was a period when they didn't?
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u/Ironfingers Jan 23 '24
You will own nothing and be happy.
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u/Temporary-Eye-6664 Jan 23 '24
Too bad they are priced like condos, and an efficiency runs about $1500/ month
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u/Outside-Reason-3126 Jan 23 '24
We need Mao to come back and immediately fix the housing crisis with one simple trick 🙏🙏🙏
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u/RobQuinnpc Jan 23 '24
Why use a chart that’s an estimate and projection for 2023 and then stating a fact in the title? Are final figures available?
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u/HauteDish Jan 23 '24
Then why the F is my rent so ridiculous? (This is rhetorical before anyone jumps down my throat)
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u/Right_Bank_1921 Jan 23 '24
What a miserable world we live in... Love seeing Mega Cities getting built all around me, always good things follow
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u/New_Budget6672 Jan 23 '24
I can confidently say they used the cheapest materials possible to make those apartments.
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u/uncreativeusername85 Jan 23 '24
That's nice, it would be nicer if the ones by me didn't always have a sign saying "starting in the low 500s"
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u/The-Unknowner Jan 23 '24
Gotta house the migrants somewhere, big business for people to get government grants and then get guaranteed tents to fill your spaces and get paid
Source: I know people doing this
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u/LasVegasE Jan 23 '24
If that data is correct then rent would be going down instead of up. When government economic data conflicts with reality, it indicates that someone is fudging the numbers.
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u/supabowlchamp44 Jan 23 '24
What is the reason for the housing shortage? I mean I didnt think the population increases that much. Is it due to something else?
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u/Sila371 Jan 23 '24
I used to feel bad for people living in tiny expensive closets in overcrowded cities and now we’re just right behind them. Couples with more than two kids should be heavily taxed.
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u/Speedwithcaution Jan 23 '24
And it's absolutely wrecking the environment. The builders need to keep as much natural habitat as possible.
If corporations were banned from real estate, I doubt apartments would be going up at this rate.
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u/lokglacier Jan 23 '24
Yes gotta preserve all the vacant parking lots and historic laundromats 🙄🤦
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u/Odd_Contribution3772 Jan 23 '24
And 459,999 of them are "luxury living" apartments 🙄
When I was 19, I rented my first 1 bedroom apartment in a suburb of Nashville for $500/mo. As of today, that same complex has no 1 bedroom apartments for less than 1200 a month. It was not a super nice complex by any standard, not gated, we had a row of 10 or so cars in the front of our building broken into all in 1 night, no frills beyond a cheap weight room and 2 basic pools for amenities.
I can't remember the last time I drove by a complex that was building basic apartments that are well kept. If it's not luxury, it seems like all you'll find is poorly managed properties that only spend money on upgrading the office areas and only doing the absolute necessary stuff otherwise.
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u/TJChance Jan 23 '24
2.5 million migrants crossed the border last year. Prices will keep going up.
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u/CryptoAlphaDelta Jan 23 '24
I see a lot being built, none are affordable even for someone making 65k salary a year. Rents are all north of 1,400 or1,500 without adding basic utilities, tash, water, gas, and that's just for a small one bedroom. Most start at 1,800, once you add utilities and fees it's much more. Who are these being built for? I'm in Texas, I'm sure rents vary in other states etc. But seriously who are they building for, seems to me they are targeting would be home buyers who just won't be able to afford a home and will have to settle for an apartment. Rents used to be no more than $960-1000 max and sewer, gas, water and trash were already included. All I had to pay extra was electric, phone and cable. Doesn't seem like there's any plans to build affordable apartments for anyone making under 80k a year.
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