Setting rental rates at 30% of median or average income for the area is the wrong way to think about it.
Setting rental rates at 30% of "What the average renter makes" is more reasonable.
This is the issue. There is no "what the market can bear". It is all "that's the way it is".
Every year there is a new excuse why prices go up (covid, fires, elections) but the numbers don't seem to align.
Also, I am not talking about SF or Bay area...the bad math has spread across the country.
Edit: And yes...my area has many vacant homes and even more commercial buildings. They are building high rise towers which people purchase and leave vacant. They buy houses that used to be rentals and tear down the entire neighborhood and leave it that way for years...further pushing out the rentals.
It is sad to watch the town I love destroy itself from the inside.
Setting rental rates at 30% of "What the average renter makes" is more reasonable.
This is the issue. There is no "what the market can bear". It is all "that's the way it is".
Every year there is a new excuse why prices go up (covid, fires, elections) but the numbers don't seem to align.
Also, I am not talking about SF or Bay area...the bad math has spread across the country.
Edit: And yes...my area has many vacant homes and even more commercial buildings. They are building high rise towers which people purchase and leave vacant. They buy houses that used to be rentals and tear down the entire neighborhood and leave it that way for years...further pushing out the rentals. It is sad to watch the town I love destroy itself from the inside.