Who makes up these prices? (Post, Eden: renting, homes, buy)

[Bp25]

Why are people feeding this troll? If the OP wants subsidized housing, let him move to a socialist country.

[riaelise]

Originally Posted by centralaustinite

Salaries may not have increased overall but there is a much greater supply of high income Austinites than there has been in the past!

Dell Children's, Dell Medical School, stand alone ERs, and more hospitals mean many more doctors, nurses, administrators, and medical professionals here than 30 years ago. The semiconductor and equipment sector has stayed stable and even grown with Samsung. Google, Apple, Facebook, and Amazon (not the warehouses in SM) all bring high salaries. Commercial real estate development and construction, the list goes on and on. Such a difference from the days when UT and state government dominated the economy.

What do we do about public employees? State worker salaries are meh at best. There are several private industries that don't pay all that great either. Texas based law firms have just started to get with the program when it comes to pay. like I said upthread, there was a $20k difference in salary between what i received at a Texas firm vs. what I receive now at a global firm. Everyone's not into tech or medical.

Socialism has nothing to do with it. I guess I"m lucky that I make a competitive salary that would enable me to move to plenty of areas. But the elephant in the room needs to be addressed. Moving farther out isn't the solution because, short of living in the true sticks, prices have gone up there too. the wear on your car would be brutal for a state job paying $35k per year.

[Bp25]

Originally Posted by riaelise

What do we do about public employees? State worker salaries are meh at best. There are several private industries that don't pay all that great either. Texas based law firms have just started to get with the program when it comes to pay. like I said upthread, there was a $20k difference in salary between what i received at a Texas firm vs. what I receive now at a global firm. Everyone's not into tech or medical.

Socialism has nothing to do with it. I guess I"m lucky that I make a competitive salary that would enable me to move to plenty of areas. But the elephant in the room needs to be addressed. Moving farther out isn't the solution because, short of living in the true sticks, prices have gone up there too. the wear on your car would be brutal for a state job paying $35k per year.

How do you address the elephant in the room with a free market economy? Either state has to increase its payscale or it has to provide subsidized housing to the employees if it wants to keep the workforce. You can't force the market to lower the rent below the demand-supply equilibrium point as OP was demanding.

[Trainwreck20]

Umm...people live elsewhere and drive-in? Seems to be how it works for now. In Santa Fe, most state employees live in Albuquerque and take a special commuter rail in. There are options. Trying to 'fix' it via some odd regulation or whatever tends to cause more problems than it solves.

[gwarnecke]

After the tech bubble pops and rents plummet, it won't be because landlords suddenly decided to stop being so greedy...

[riaelise]

Originally Posted by Bp25

How do you address the elephant in the room with a free market economy? Either state has to increase its payscale or it has to provide subsidized housing to the employees if it wants to keep the workforce. You can't force the market to lower the rent below the demand-supply equilibrium point as OP was demanding.

No, you can't. The payscale should be increased, but people will always need work, so. And that's my question - what do you do.

Originally Posted by Trainwreck20

Umm...people live elsewhere and drive-in? Seems to be how it works for now. In Santa Fe, most state employees live in Albuquerque and take a special commuter rail in. There are options. Trying to 'fix' it via some odd regulation or whatever tends to cause more problems than it solves.

As I said, how far do people need to move and drive? Because the prices are rising "elsewhere" too. As for commuter rail and such, that services just one lone segment of the metro area. I'm fine with moving farther out if the transit system wasn't so abysmal. I'm also not just talking about people living in Austin proper. People outside of Austin are feeling the squeeze too.

[Bp25]

Originally Posted by gwarnecke

After the tech bubble pops and rents plummet, it won't be because landlords suddenly decided to stop being so greedy...

Then the OP will complain about not having jobs available.

[ringwise]

Originally Posted by hitpausebutton2

Thanks for breaking it down.. but most homes that these property management have are already paid for, so no mortgage to pay on, just taxes.

1. So what?

2. How do you know that? Do you have facts to back up your claim?

3. Refer to #1

How much someone owes has zero to do with how much rent they can get. Whether you like it or not, the market DOES determine rent.

[ringwise]

Originally Posted by hitpausebutton2

Come on over Mr. steve. lol..

I know i am in charge of my "destiny" in life. I look for better jobs daily, as most of you consider it job shopping ( hopping). Look for that better wage, benefits and family balance work life. Seems to be hard to find these days, as most employers want you to work 60 and only pay you for 40 and doesnt give 2 cents about your personal life. Another story..

But owning a home is cost that you as the owner will need to eat, not pass the buck on to the renter. If i own my house, i would eat it up, so whats the issue with you eating it up from your profits?If your banking 40k a year per house in rent, and your tax liability is 10k.. so what dent is that putting in your profit other than 10k is lost in taxes. still banking 30 per house.. ( just random numbers here).. if you really rent homes, give me or the viewers a good example your home expense. cost, profit margin.. ect.. i would really love to see your numbers.

Clearly not an economics major.

You do understand that a rental property is a business and is meant to earn the owner money. Much like your salary is to you. You home that you live in is something far different. They also live in a home, which something far different from their "income" property.

PS. You don't get to decide how much is "enough" profit.

[austin-steve]

Originally Posted by gwarnecke

After the tech bubble pops and rents plummet, it won't be because landlords suddenly decided to stop being so greedy...

If we have an economic pop, sales prices will flatten and/or drop. Rents will stay the same or increase due to more people unable to buy.

From after WWII when tracking started, until the tech bubble in 2000, homes rented for about 1% of sales value. If a regression to the mean happens, rents rise and/or values drop, or both. Unless the disconnect between rent/sale value is a permanent "new normal".

Rents have in fact leveled off or dropped this year for many upper end homes.

Steve