Rent Simulation

As if all of the more or less hidden fees were not bad enough, young, single, and poor families able to find a rental property are often discriminated against. Landlords tend to use factors such as income and credit history in determining who gets their rental property Richer families end up doing better with rent control laws because of this. Poorer people who make up a larger part of the population end up out of a house to live in.

Rent control refers to laws that limit the amounts of rent and the amounts that rent can be increased in any year. There is no statewide rent control in the US, and all the rent control laws and regulation are passed by cities. Most of the cities with rent control are located in New York, California, and New Jersey. Washington, D.C. also has rent control.

Gentrification is the process of renovating and improving a neighborhood so that it can be more appealing to the middle-class taste and is negatively affecting many neighborhoods all over New York City. The gentrification of low-income neighborhoods can bring down a neighborhood and is responsible for the displacement of families who can’t afford to live in the gentrified area anymore due to the price of rent being dramatically increased. Landlords tend to raise rent to cast out low income renters and make room for higher-income renters who are looking to move into the neighborhood. Some of the lower class residents who are basically forced out of their homes tend to move in with relatives, search for a place to go in one of the city’s remaining cheap areas, and can even go homeless if they have no family, friends, or anywhere to go.

New York City rent and apartment prices are fair because they can be justified from the bottom’s up. We’ll compare this to Miami, which in our opinion is not correctly priced.

New York City is one of the places that has rent stabilization. If you were a middle class working individual looking for a place to live it might be more difficult than you would have thought. The rent control policy in simple terms is that the government has set limits on how much a landlord can charge for rent. This policy was intended to lower prices and balance out the control between residents and landlords so that tenants with lower wages can housing. Although this policy does have positive aspects, there are many unintended consequences as a result. Since there is a control on how much a landlord will charge, many of these rentals have lower-quality living conditions. There is also a problem with availability because many rentals already

Yet another effect of gentrification is its effect on senior citizens. Seniors often live in the same unit for many years. As a result, rent control has kept their rents well below market rate, and landlords stand to gain the most from evicting them. For example, in the Mission District of San Francisco, many seniors live on a fixed income, and cannot afford market rate rents once they are evicted. "They lack mobility, and have difficulty

The cost of housing is increasing while the amount of income of low-class workers is decreasing. Housing is considered unaffordable when it consumes more than thirty percent of the household income (DiNapoli 4). In 2012, forty-percent of the households that earned less than $40,000 per year spent more than forty to sixty-eight percent of their income on rent (Mathias). Affordable housing has also decreased in a twelve-year period. From 2000 to 2012, approximately 400,000 apartments renting for less than $1000 were lost (DiNapoli 1). In order for a minimum wage worker who earns eight dollars an hour to afford a two-bedroom apartment in New York City, at a fair market rent, must work 124 hours per week, 52 weeks per year, which is also disregarding costs for food and health care (Out of Reach

The number of rent stabilized apartments had been decreasing slowly until 1997 when the NYS legislature decided that once a unit’s rent went above $2,000 and the household income was $175,000 or above the landlord could begin to charge market rates for the unit. The thresholds were raise in 2011. This year Bill de blasio wanted to raise the rent threshold to $3,000 per month, but the legislature approved the limit be raised only to $2,700 per

There are lots of benefits brought by the rent control after it was adopted. First of all, the rent control lowers the rent, so that the rent apartments have become more affordable for the public, especially for poor and working people. One statistic that may help with this statement would be the journal published by Gerard Mildner and Peter D. Salins in 1991, they stated that the normal apartment renting price was about $180 in 1975 because of the rent control. 12 years later, which is 1987, the rent price increased to around $400 due to the inflation. We can see from the data that the rent went up for about 130% in 12 years. However, the consumer price in general only rose 105%. (City Journal) Therefore, instead of only maintaining the current rent price, the rent control also helps to prevent

According to Chapter 17 of Real Estate Principles by Charles J. Jacobus, the main reason rent control is used today is to protect against inflation. But what happens when inflation is not a huge problem anymore? Will rent control still be effective? A study was performed in San Jose about their 1979 rent control ordinance which showed that the ordinance did little to actually restrain rent. The current ordinance allows for a tenant’s rent to increase 8% per year if the unit was built before 1980.

In recent year’s residents in and around places like New York City and the Bay Area found themselves being unable to continue living in these areas due to the rising costs and value of their homes and apartments. This rise in value can be attributed to the desire of more affluent individuals wanting to live in these areas and willing to pay more to do so. Along with these residents came additional commercial development to match the lifestyle choices of the wealthier newcomers in the area. The influx of more affluent inhabitants in conjunction with upscale commercial development caused the value of residencies in the area to increase resulting in previous resident either moving away or being evicted should they be unable to afford their rising

Rent control has it effects, pros and cons. But it all depends in the different perspective of each person. The main idea of rent control is to make affordable housing available, which is a pro to lower and middle-income residents. Having the opprotunity to live in popular palces that they would think they can’t afford but wiht rent control it wouldn’t be a problem, and it also allows the neigboorhoods

Normally in a free market the cost of rent is set at a specific price because of simple supply and demand. When there is high demand, investors see an opportunity to create profit so they build more housing making supply increased surpassing demand. Then the price of homes and apartments come back down to a market equilibrium resulting in affordable

We start by examining the costs and gains of owning and renting. In terms of owning a house, the key profit from this is the equity the owner gets from the house when he sells it. From that equity, the cost of maintenance and property taxes as well as other homeowner expenses such as insurance from it. According to Emre Ergungor and Saeed Zaman, the federal tax code allows some homeowners to subtract their mortgage interest and property tax payments from their taxable income, which can lead to tax savings. The tax benefits also reduces the net cost of owning a home. On the rental side, the main con is the aggregate rent payment. To see profits, consider a renter’s ability to save money and invest. Because people are eager to buy bigger houses that possess adequate number of essentials, the total payments for buying a house (mortgage, maintenance etc.) usually cost more than payment of renting. This means that if a family chooses to remain renters, they could be saving the difference between the rent and the money they would have spent as homeowners, and that savings could be invested and earn income over time. Savings value you acquire is the advantage of renting, and the difference between it and the total rent expense is the net cost of renting (Ergungor and Zaman). Rental prices dropped as supply increased in some markets and at the end

Important to realize, around the time of the recession in 2007, consumers were very reluctant to purchase homes. Considering the fact there were many foreclosures. Ever since then, the economy has been improving, and now homeownership has grown to an extraordinary level. Unfortunately, it´s bad news for the rental market where most consumers especially the start-up workers thrive of. Before, when homeownerships have been declining, rent prices were rose to an insane amount, faster than even the pace of inflation due to high demand. At this instant, the census bureau last week has reported ownership has increased to 63.9% in the third quarter, the highest level since 2014. The rate