L.A. Times: Why is liberal California the poverty capital of America?

But how would that benefit the owner?

 

which is irrelevant to the fact it's because of Obama.

which of course didn't happen.

 

That was my point. No one is going to rent out a home and lose money doing it.

 

400k? Where I live that means you have a railroad track in your backyard and drug dealers in your front yard. Currently that'll rent for about 2500.

 

I was being modest, as the median price for a home in SoCal is about $500k.

The point is, only people who make a substantial amount of money would be able to afford the rent that is driven by the cost of homes in the area.

Putting in rent control in such an area simply means there will be no homes for rent, as the owners would lose money on that prospect.

Are you suggesting that the people in need of "rent control" can afford that $2500 a month rent right now?

The Temecula/Murrieta area is one of the only examples I can think of where the prices aren't out of the world ridiculous in SoCal.

 

Sentimentally, I agree. Practically, thats a huge step towards collectivism.

Ideally, I would like to see a system that discourages real estate as a means of hoarding wealth, but still allows for it. Perhaps by alotting every citizen a maximum of two, tax-free 'residences' (so people can own and live in a home while having one listed for sale) and dramatically raising taxes on any additional residential properties that are either not available for rent or have not been rented for a certain period of time (to prevent raising rent prices as a means to loophole). As far as corporations go, I would like to see their status as 'persons' done away with, but until then, a corporation would be subject to the same laws- two tax free residencial properties, and high taxes on any (unrented) beyond that.

Or something along those lines.

 

I'm suggesting the part of the reason prices keep rising is the high rent. Houses get snapped up by investors so they can rent them out.

 

Part of the problem.

 

It's a vicious cycle; high home prices keep people renting, the lack of housing (affordable and otherwise) pushes rents up.

It's unsustainable, and we're headed off a cliff.

Good morning, Soylent Green.

 

One bedroom apartments rent for 2000 - 2500+ in LA now.

 

Buying a house with the idea of renting it out tends not to be a great investment. I don't know your area but look at a typical home and the rent it might get and the rate of return likely isn't that great.. They may just be speculating that the market goes up.

 

A speculation made more affordable by constantly rising rents.

 

Why is liberal California the poverty capital of America?
Just following the laws of economics...