Why Your Rent Keeps Going Higher (Landlords Getting Sued)

[@Psyberify]

A lot of cities need a building boom, but cities are so restrictive that sometimes it’s impossible to build more units. Supply is simply not keeping up with demand. The housing crisis is artificially inflated by municipalities and state governments to the detriment of everyone.

[@Steve_Takes]

First things first where do you get the money?

[@Psyberify]

@@Steve_TakesThere’s plenty of people that want to build, they’re just kneecapped by the city governments.

[@Psyberify]

Too many NIMBYs.

[@ness0388]

They keep building where I live but the new places are even more expensive than the original

[@Dividend_Info]

The new ones will be even more expensive

[@dealforbet8888]

The struggle between fair market value and affordability is a tough one for landlords to navigate. It's a delicate balance that impacts both renters and property owners.

[@jimromero1121]

If the software says the living space is worth a certain amount but no one can afford it, and it sits vacant, what does that say about the software. As a landlord you'd have to ask yourself, how's that making you money?

[@a104917]

It's almost like the software is a suggestion and the property owner is free to do what they want. Wild!

[@AshleySpeaks4U]

Zillow is price-fixing, definitely. Algorithm knows NOTHING about the local economy a property is in.

[@TheSmoothGrind]

@@AshleySpeaks4U Zestimate = Estimate, or an opinion of value. How is it price fixing to post an opinion of value?

[@jakeforrest]

Where I live, it is illegal to own property (an apartment or a house) without either live in it yourself or rent it out. Letting it sit empty is not an option !

[@pentrubarbati]

so sad that there are places like that where gov doesn't respect private property ....

[@SigFigNewton]

@@pentrubarbatigovernment trying to make economies function is fine by me. More common than outlawing vacancies is to pass a vacancy tax

[@pentrubarbati]

@@SigFigNewton also this îs a big stupid thing why ban short term îs my property i can do what ever i want If i pay taxes but we all know that îs not for the good of the people but for the hotel lobby that presure to eliminate competition so they can keep oferind crap overpriced services

[@The_High_SeAs]

Sounds like a terrible place to live

[@SigFigNewton]

@@pentrubarbati increasing supply is what is good for people Keeping supply too low is terrible for everyone, especially small businesses

[@a104917]

If you want housing costs to go down, look nowhere except your city/county planning and land use departments, and tell them to stop saying no to people trying to build things that aren't violating building or safety code.

[@Libertaro-i2u]

Zoning and planning boards can be the biggest NIMBYs (Not In My Backyard) around!

[@D9Beats]

Yeah man it’s crazy how expensive things are getting and how we’re all making the same amount or less money

[@TheGrahamStephanShow]

Agreed!

[@penguingobrrbrr353]

And when they say "JUST LEARN SOMETHING TO MAKE MORE" its pissing me off. Like... I have so much education and skills and the salary I get is still making me just survive ? ? what is this.

[@Mavryck_Tha_Myghty]

@penguingobrrbrr353 - the lesson you are trying to learn is that “learning something new” is only part of what is required. You must then seek out, find or create your own opportunity. It doesn’t just fall out of the sky on your front doorstep.

[@alienwalk]

@@penguingobrrbrr353 Do what you can to be invaluable at your job and make your boss hate the idea of trying to replace you, then leverage that and ask your boss to increase your compensation commiserate with the increase in value you bring.

[@Dividend_Info]

@@Mavryck_Tha_Myghty Thats right

[@boondoggle4820]

I think that something needs to be done about the shadow inventory problem. We have plenty of actual housing units. We just don’t have enough actually placed on the market. And, we have people intentionally hiding inventory so that they can charge more for housing.

[@AshleySpeaks4U]

Yup!

[@nickm5348]

The comparison to insurance in Florida: Florida has had a ton of issues with insurance fraud causing rates to skyrocket. There's also been accusations of rental platforms colluding with landlords to have them set these "market rate" rents much higher.

[@cynicalcindy1434]

The colluding is founded in the software by RealPage

[@Austin-fc5gs]

Its not about software, its about the portion of the market who is using the same software. 90%

[@SiK2tehTouCh]

Bingo

[@SigFigNewton]

Barely matters at all. It’s about supply. If a piece of software is giving all landlords the same number, but many landlords can’t find tenants, they will start lowering their asking price, ignoring the software.z Price never stops being about supply and demand. It’s just that software is often better at helping them understand supply and demand

[@Austin-fc5gs]

@@SigFigNewton See my other comment about supply, and landlords (and others) working to restrict that as well. "a piece of software giving all the landlords the same number" is the definition of price fixing, and also doesn't describe the software accurately because not all houses are inherently worth the same amount. This software (that 90% of landlords are using) price fixes groups of comparable houses (which disproportionately impacts the poor, think about it) to be the highest cost possible.

[@regtalkswealth]

Its crazy how landlords are just increasing rents whenever they feel like it what 🤣😐

[@SigFigNewton]

When a basic need is not made abundant, it will be priced exploitatively.

[@buildingbuildercip8292]

As a landlord…this is a great tool to use. I see how it can eliminate the headaches of trying to figure out what the fair market value is on a rental.

[@anthonyhalstead3925]

Graham I just want to say thank you for being a great role model! I got my real estate license last year and I was able to join a wonderful team in Arizona. This month I am going to be able to pay off all debts aside from student loans. I have saved up a 3 month emergency fund. All because I found your video on how to fix your credit score back in July of 2021. Thank you

[@Dividend_Info]

He is the best in this

[@quiencreesguey]

The tax law should allow 1031 exchanges to apply towards new construction projects. That way real estate investors of all sizes, not just developers, would have a huge incentive to build new housing, instead of just swapping around existing supply.

[@arh1234]

Cool idea!

[@SigFigNewton]

Wut dat meen

[@quiencreesguey]

@@SigFigNewton When you sell real estate, you can defer the tax liability if you 'exchange' it for another piece of real estate of equal or higher value. It can be land, single family, commercial, etc. It's one of the biggest advantages that real estate has vs any other kind of investing. However, it does nothing to help the housing supply issue because you're just swapping between existing properties. This tax advantage doesn't apply if you would like to use the proceeds of that original sale to build something. If it did, it would be a massive incentive for new construction: investors can sell a property, and use those funds (tax free) to build. They wouldn't have to depend on bridge loans, which in a time of high interest rates, are one of the major reasons why new construction is slowing down even more. Wouldn't that be awesome? I'd like to see what Graham thinks of that idea.

[@SigFigNewton]

@@quiencreesguey I think that sounds like a great idea. Anything that increases supply sounds reasonable to me. For instance, down payment assistance programs and rent control are terrible ideas that if anything make the supply demand imbalance worse. While vacancy taxes, making sure it’s legal to put manufactured homes on properties, and directly subsidizing construction are all good ideas.

[@SigFigNewton]

@@quiencreesguey e

[@desiv1170]

I think the real price fixing part will come with the theoretical software decision telling someone to raise their price, not because it's lower than others, but rather because it would decrease rents if you did that. If you are setting a "fair value" just so it keeps prices higher, then that is in the price fixing category. That said, I agree that is really tough to prove...

[@TravelWithNala]

Housing definitely feels like a grift. Supply and Demand and Capitalism can't play it's role because Supply is being manipulated. As an entrepreneur, there is no incentive to innovate in the housing space (construction, logistics, format etc) because you'll always hit a regulation brick wall.

[@SigFigNewton]

People using government to restrict supply will cry socialism if we use government to increase supply

[@kingbender22]

when graham says it out loud it kinda sound like price fixing behind closed door or a monopoly on the market

[@SigFigNewton]

Can’t work if supply is high enough. Landlords should be made to compete for tenants by lowering price. That’s a healthy market. That’s what is best for local small businesses

[@thanksyoutubefortakingmyhandle]

3:48 I said maybe that's a monopoly right when you did Graham haha

[@tryingsumthing5340]

As an ex-landlord, I'm so glad I sold everything and invest in index funds. I live in a part of Canada where the tenants have more rights than landlords and it`s been really hard to increase the rent as they can contest it. But the city taxes, school taxes, insurance fees are all going up substantially and the landlords can't do anything about it. Ever since I sold the properties, I am way less stressed and have had a better ROI being a boring index investor. I am very curious to know if those landlords actually get a better return than if they would've invested in the s&p500

[@thedopplereffect00]

Probably your only hope as a landlord there is to be big enough you can pay kick backs to the local politicians

[@kellyhou9594]

I think it depends where you invested. Downtown market tanked, 905 area seems to be doing better. I think it is also more than return on investment. It is just a joy of owing real estate. I am tempted to do the same, after all the charges and taxes, I don't think I will be making much. Government is making money on land transfer tax, capital gain without doing anything at all.

[@nkoeppen]

Atleast your stocks can’t sue you!

[@Dividend_Info]

I don't know about the profitability, but it is way too easy just to invest in the stock market and collect that sweet sweet dividends

[@a104917]

You sound lazy and ineffective as a landlord glad you are happy selling your amazing asset that could have funded your S&P investments infinitely.

[@celularphone]

It is price fixing. Just because a lot of people are breaking the law doesn't mean its ok.

[@penguingobrrbrr353]

The fact that everything in today's world is so expensive and people are just quiet is mindblowing. The amount of education you need, skill, IQ, time, resources... literally so much you need to just EXIST and live like a human... This is scary. Back then you really didn't need so much to live l ike an average human being and be 'safe'. The greediness man...

[@wallcouldtalk]

People aren't quiet about it. It's just that it doesn't matter. Until it creates a situation where they can't continue to grow, then nothing will ever change.

[@arh1234]

Through most of human history, most humans worked hard every day from childhood to death. When is this "back then"?

[@SigFigNewton]

Don’t need IQ or skill to be a landlord

[@penguingobrrbrr353]

@@SigFigNewton trust me once you have multiple properties you will need it and skills.

[@reesedaniel5835]

Wild animals have it much better than humans. They aren't required to pay taxes or "work" for the corporations.

[@Austin-fc5gs]

Landlords, and realtors are the ones lobbying for more strict zoning, preventing more housing from being built.

[@jakestr99111]

Its actually mainly single family home owners that live in their home. They don't want an apartment close to them and like that their home price goes up due to low housing supply.

[@Austin-fc5gs]

@@jakestr99111 imo single family home owners are still landlords, they're just renting it to themselves. Maybe a better term would be landowners and interested parties

[@Kalvain14]

The vast surplus of commercial space due to remote work could be used to fill residential need, but the zoning requirements in most cities makes this option difficult to choose.

[@stvkdcashgood]

I used to own a few fast-food places. We had a company that would send us a report couple times a year. They would pretty much tell us how much we could charge for each menu item for each one of our locations.

[@bkucenski]

TurboTax warned me this year if my rent was too far below "market rate" I would lose tax benefits. Even the government is involved with trying to force landlords to screw over people. I haven't raised rent on my condo since 2019 because it was priced fairly then and nothing has significantly changed for me since then. It's not "market value" if people are under duress. People are not paying higher rents because they can and want to. They're paying higher rents because nothing more affordable exists and cops might tase you to death if you're homeless.

[@CarysCorner]

I’ve been seeing the same thing on TurboTax for the last four years. Seems like government is trying to play both sides of the fence. Of course, that is no surprise.

[@juystafanreview2532]

Well said sir. "It's not "market value" if people are under duress." Even landlords who outright own the residence are increasing rents because of "market value" but nothing has changed for them. It's not like they are paying more in interest. It's extra money so they will raise it because they can. The supply is not high enough to discourage this practice.

[@cryptarisprotocol1872]

@@juystafanreview2532 The supply is not high enough because America has asinine outdated zoning laws from the 19th century and early 20th century. This country is functioning like as if it’s still pretending it’s got 50 million farmers tilling 400 acres of land each or something.

[@CarysCorner]

Yep... I’ve been seeing the same thing on TurboTax for the last four years. Seems like government wants low rents, but will "ding" you if they are too low (ie, taxes).

[@a104917]

@@juystafanreview2532 so someone who paid off their first house should rent to you for free?

[@TravelWithNala]

I think there's a difference with an estimated price (zestiamates) and a suggested price. The price is a "suggestion" but really landlords are pressured to follow to the system. If they go against the system and lower prices, the other landlords will be furious. Since every landlord feels like communal pressure, IMO this is a form of collusion.

[@tragiicgg]

Well the software should not favor the landlord nor the tenant. It should favor the economy and growth of said place, so it would differ from city to city

[@benchoflemons398]

I think they are trying to say it’s price fixing. Edit: yea that’s what they’re saying.

[@disgruntledcashier503]

one of the worst things about modern life is that we've bought into the narrative that housing is a financial instrument, when it is first and foremost a basic necessity for human survival. If the agriculture industry limited the food supply to drive up prices, we'd burn them to the ground in a day.

[@oshitomaha]

There’s nothing modern about this, centuries ago people have always have to pay rent. Nothing is guaranteed in this life. You want total destruction, chaos, and degeneracy; or do you want a civilized society where landlords and tenants exist? I chose to be a landlord, you’re choosing to be a tenant. Nothing is stopping you from being a landlord.

[@disgruntledcashier503]

@@oshitomaha I never said landlords or tenants shouldn't exist. My point is that too many landlords think they are operating in a luxury goods industry. There's 330 million people in America that have a fundamental human right to a roof over their heads. If a landlord/tenant system is the way to most equitably and efficiently address that need, it needs to do so without pretending that its clientele has a cheaper option. Because the majority of the time, the cheaper option is homelessness.

[@a104917]

It became a financial instrument when cities allowed your neighbor to say NO to your new building goals.

[@williammacadam2416]

No prices never come done. Rents never come down, food price never go down, they just have sales equal to old price before hike

[@xeneth911]

I suspect that the agreement has that they will loose the license if the do not agree to rent that the "suggested" amount.

[@porsatti09]

Don't hotels and airlines do the same thing? Where does it stop? What do you think Amazon does for products or Facebook on selling advertising?

[@chrisf6765]

You're spot on with the widespread implications. Imagine how this would effect Amazon's algorithm based pricing...

[@A_PringlesCanwithVeins]

They already do ...

[@chrisf6765]

Pending litigation regarding housing software is effecting Amazon? I'm not sure we're talking about the same thing.

[@A_PringlesCanwithVeins]

@@chrisf6765 Amazon uses algorithms to adjust prices for the entire market. They're going to start selling cars , ready made houses , and medical care . With the algorithms imagine what it does to all markets

[@xxxxMonkeyGirlxxxx]

This is housing. If people can’t afford housing they are homeless. If people don’t buy from Amazon they are not homeless.

[@bkucenski]

Building more houses and more affordable houses is going to require changes to zoning laws and loosening of lender guidelines so people can get construction loans who make actual middle class income. I bought an abandoned house in Macon, GA to clean up the neighborhood and also because of Boxable. However, there's a good chance I'll never be able to put a Boxable home on the property as zoning requires "stick built." And you have to do a lot of research to even find companies that can build homes and then find one that can do it for a reasonable price. And then secure financing, etc. When only rich people can build homes, the prices aren't going to drop.

[@SigFigNewton]

Landlords write those laws

[@a104917]

@@SigFigNewton and renters get tricked into voting them into existence

[@AshleySpeaks4U]

Investors have changed "affordable" to $1,300. And have changed mortgages from $1,300 to $2,400. Virtually over night. So ALL "affordable" rent will still cost the same as a mortgage from ten years ago. Apartments are supposed to be well UNDER $1,000. "Affordable" for MOST people is STILL $550-$850. ☹️ There is no REASON a stuffy apartment NEEDS to be over $850. There just is NOT.

[@IssaqAl-Ahmed]

Solid take. The problem is as you say, this is a supply and demand issue. The accusing party needs to be able to prove that prices are higher than they would otherwise be which I feel will be extremely hard to do.

[@joefunk76]

It’s reasonable to assume that prices are higher with the software. Without it, not only would landlords be unable to indirectly collude to anywhere near the same extent, they wouldn’t know whether maintaining a price that leaves a unit vacant for weeks or months is the right thing to do, and, consequently, many would buckle and lower the price to fill the unit, thereby triggering lower comps, and so on and so forth. 90% of landlords aren’t using that software because they think that the long-term profit-maximizing prices according to the software make them less rather than more money compared to if they were acting on their own whims. Note also that that software generally sets prices high enough that they come with the implicit message “yeah, you can charge that much - don’t worry, you got this” as opposed to “sorry, but you need to fill your units cheaper than you’d like to because if you don’t, then a competing landlord will get the tenant and you won’t.” The inventor of that software realized that if he could convince millions of landlords to screw their tenants with a unified front, he could get a huge piece of that pie, and so he did. With 90% of landlords using it, it’s a collusion mechanism under the ruse of some kind of “business optimization” software.

[@TheseWhiteNights]

'build more' - how about we fix properties that already exist? There's so many abandoned homes in Philadelphia, It would be great for development work to be done on properties that already exist

[@jackattackhissnack]

I know in Detroit you can buy a house from the land bank for $1. Developers are renewing houses by the thousands but it's a slow process.

[@ElinWinblad]

That’s on purpose to drive down land cost for the elites to buy up

[@saulgoodman2018]

Yeah. We don't need to build more. People should reno older houses.

[@cryptarisprotocol1872]

The zoning laws is what’s causing the constrained housing supply. ;|

[@saulgoodman2018]

@@cryptarisprotocol1872 No it's not. People can by an abandon house and reno it.

[@_sunnysideup_]

Not all landlords follow value but trend. And if the trend is ‘I’m gonna raise just cause the next guy did it’ then they will and have. Just like sellers with shitty homes wanna price way over what the property is supposed to sell …simply cause the updated modified home sold for a ‘nice’ amount.

[@rhtrv1]

The US has historically considered housing a human right - which would make it different than grocery stores/tools where readily available alternatives exist. I definitely agree that more housing units (and not just luxury apartments) need to be approved and built though, which would help the price issue greatly.

[@SigFigNewton]

Yup, there are at least four or five examples in US history of government giving land away cheap or at a massive discount (1800s) or helping fund affordable construction (mid 1900s). Not a coincidence that when government started doing more to restrict supply than to expand it, housing cost soared. It’s probably most of the unusually high wealth gap seen today between the oldest and youngest generations.

[@DG-mk7kd]

The result will be apartments being converted to condos and co-ops and then people complaining that there is no rentable supply

[@teddutch2930]

Renting is something that is a need that people cannot get around, as far as water\power that is controlled by the state, ie they set the rate, food is something that cannot be controlled because you can replace the item or go to another store.

[@laurie1412]

Using a software to "optimize" your income as a landlord while depriving people of affordable housing is evil.

[@pentrubarbati]

stop being so entitled ...as a landlord i am sick of people complaining i am not rich but instead of buying the latest designer clothes phones etc i saved up and bought property ... the problem with most is they want the vacation the phone and maigically to aford a nice house wich is possible but with hard work and in time not when you are 23 ...

[@TVHouseHistorian]

I'm a landlord too, and absolutely hate having to charge my tenants what I do. Between the market, rising taxes, rising insurance, etc, I don't have a choice but to adjust my rents accordingly. Lowering the rent only attracts the REALLY bad people who have no financial literacy, and nobody benefits. Tenant "advocates" say that rising overhead costs isn't an excuse, and that tenants should have as many rights to a property as the owner of that property, it's nuts. Another great upload! Thanks, *Fiola!*

[@breea07]

If you have to offset the cost to your tenets, then YOU can’t afford the property. What would you do if you had no tenets? This is part of the problem. If you can’t afford your property without the tenets being screwed, then you can’t afford to be a landlord.

[@jakestr99111]

​@breea07 that logic only works for personal use housing. When you buy a place for a rental it only makes sense to do so if the rent is more than the expenses. So expenses go up then rent goes up. Idc if you're bill gates. It doesn't make sense to loss money on a rental by not raising the rent.

[@TVHouseHistorian]

@@breea07 Wrong. I can afford the property on my own just fine. However, if someone should wish to live on that property, they will be required to pay market rent, which will be adjusted accordingly as taxes, etc go up. Perhaps government needs to buckle down and cut programs as well as taxes.

[@TVHouseHistorian]

@@jakestr99111 Oh, and let’s not forget the tenants who destroy my property, costing thousands in damages. Happens a lot, and they aren’t held responsible.

[@mikewallin6049]

Buy REITS and don't have any tenant headaches 😊

[@Partysize2]

Landlord regulations are killing the small rental business. States like CA have passed tenant protection laws that they mistakenly believe will help keep rental costs down. Those laws don't work for several reasons. One, they force landlords to take and or keep destructive and non-paying tenants with draconian "due process" laws which drives up costs overall. Two, by controlling prices and rent increases, landlords are forced to raise all prices, even when many tenants are good caretakers and deserve relief. Three. In just the last 2-3 years, a large percent, about 25%, of small landlords have just gone out of business, because the laws are strictly anti-landlord and unprofitable under the flurry of recent regulations. In general, CA has destroyed the free market rental economy by over-regulating. They have kept profits down while increasing the misery of dealing with bad tenants, which in CA is a high percentage bad tenants.

[@ByrdXye]

I just now today noticed that grahm stephen zoomes in a little for dramatic effect throughout each point

[@izzosbluelightproductions]

Housing is too limited, so much so that in my area, there is still a rise in home costs and renting costs. Still keeps going up every year. So much for the theory we are underpopulated. It's actually the opposite. I don't care if they use a system to figure it out or what, just make it affordable for families because it is not.

[@baileyversluis6144]

what's the difference in just checking comps before listing your house for rent? people will only be as competitive as there competitors.

[@veronicasmemories]

Just a tiny piece of the equation would be having 'shop' classes back in school. Labor would be less expensive if we had the choice to do it ourselves or hire a professional. It would also offer an alternative career that doesn't require a college degree for students too (:

[@jasonf800]

I think it all depends on the portfolio size of the “landlord”. Institutional Investment companies should steer clear because they can greatly influence some of these markets. In some cases owning a significant percentage of the rentals in a particular sub-division/location I would agree is fixing or market manipulation. Anti-trust laws need to protect the regular folks. Other than that, I think it’s fine to use a software.

[@rayjay896]

When it's no longer profitable, the apartments will be converted to condos and sold to the highest bidder. Guess what happens to the rental market...

[@DthScythe01]

And guess what happens to the housing supply!

[@rayjay896]

@DthScythe01 it quickly gets bought up by high earners. So, now the community is generified, and you're still homeless.

[@tokyosour4215]

Rent prices are low key crazy tho rn NGL. I live in Miami and I was paying $2.1k for a 1:1 in a bad area. No fancy amenities or anything. Just a place to come home to after work you know. And i know I know, the landlords gotta eat too. But half the time its just these big companies using these apartments as stonks. At that point it's like stealing a soda from Walmart ya know - f em.

[@thesandravshow]

I don’t know they’re building like crazy in my area and rent is still terrible. My landlords have managed to keep my rent reasonable.

[@SigFigNewton]

If they build enough rent will decline and local small businesses will thrive

[@KevinSmith-gu7fb]

I'm not sure how using the same software can count as price fixing unless the sellers are actually getting together and conspiring. Just using software is like using a reference book or list. It's just a resource to get an idea of what to charge. How is that price fixing any more than just looking at a piece of paper?

[@cardeyagarris1709]

The interest rates on these homes is insane. In the past you would be paying less as a homeowner than a renter. Now it’s the same. Just to break even you have to charge what the apartments are charging. I don’t think building more will really change anything because landlords and apartment complexes are seeing that these tenants WILL pay it…

[@SigFigNewton]

Far cheap to rent in many places. Sometimes cheaper by an amount equal to the monthly equity gain of owning your home. So that owning is throwing money away (insurance, interest, tax, HOA, repairs) just as much as renting is throwing money away. But without the freedom of renting

[@alexanderchan2938]

zestimate vs telling people to wait until a certain time to inflate the price can't really be compared in that way

[@phillboyd]

Absolutely, if 90% of property owners use a software that tells them to artificially keep a property empty to inflate property values. Then they’re using a program that has been taught how to price fix. That is infinitely different than a price estimate based off comps.

[@MJB4646]

If they don’t get the rents because they purchased the software, but because other people purchased the software that’s what would make it illegal. Price fixing is illegal, you can’t just slap “AI” on something to make it fine, it’s just antitrust with extra steps

[@saulgoodman2018]

Who's to say what's market rate for an apartment is. I'll bet that software let's you put in maintenance, repair, taxes, pay, profit, etc. And it determines rent that way.

[@kharithoughts2679]

So you can't use research to figure out what to charge? I am all for doing things to lessen our rent crisis but this seems ridiculous.

[@abc123fhdi]

In CA they seem to think as long as rent control isn't imposed on buildings less than 15 years old this will incentives developers. But what happens when the buildings ages out of this period? Rent control. It doesn't really incentivize increasing housing supply. Just makes people want to buy and rent out single family homes that aren't subject to rent control, so low density housing and there is plenty of land that can be developed.

[@a104917]

claiming rent control exceptions are incentive to build is quite a stretch buddy. Upzoning, fee reduction, and removing design reviews would create huge supply.

[@jareddeemee8582]

Yup zoning laws are a way bigger factor than people think. Zoning laws and NIMB’Ys being given too much power. Too much suburban sprawl, too much R1 zoning, and the property tax will never be able to keep up with the waste. That’s why NotJustBikes is still correct when he made the video “why American cities are broke”

[@Nolen_Sorento]

Just bought my first property in 2020. It's my opinion that the landlord should only be allowed to charge rent at the exact same price of mortgage (with insurance and hoa fee if applicable) that's my opinion. It would go a long way to help the entire country out. I'm open to hearing opposing opinions.

[@15630scarusrd]

So, if I don't have a mortgage on my rental then I shouldn't be able to charge anything? Why would I have a million dollars invested to not make any money on it? What do I do when the roof needs replaced, or it needs a new furnace? What about when the tenant trashes the unit substantially more than the deposit will cover? If you really do have an investment property, you are in for a rude awakening my friend.@@Nolen_Sorento

[@a104917]

@@Nolen_Sorento you clearly missed the point and replied with a non-sequitir short sighted opinion. So if someone successfully pays off their mortgage or buys a house with cash, they must rent it for free? Exchange your brain man.

[@kharithoughts2679]

Is Kelly Blue Book illegal, what about the consumer price index, etc? I could see if landlords collided together to say they all have to use the software but they didn't do that.

[@GhostAssault323]

so the city can raise property tax and insurance can raise premiums, but landlords get slapped in the face for wanting to raise rents? hmm

[@Dividend_Info]

the harsh truth

[@SigFigNewton]

The correct course is to build enough supply that landlords are fighting over tenants by lowering rents

[@famicomnintendo]

Planned banruptcy

[@juystafanreview2532]

Home Insurance is going up too. My bill went up over 15%-20% for the year.

[@joe62845]

Is rent prices regulated? So if you rent an apartment you can't choose any price to rent that apartment out? At that point you'd think it's up to the tenant to decide if they want to rent that apartment right? Yeah it'll suck if everyone charged a crazy amount though.

[@AbhijitBiswasDBZ]

We cab build and build, i am just wondering if I'm be alive and sane to see what happens when populations around the world start shrinking... it's literally going to be an issue at the end of this century

[@jeffrounsville4961]

Great video

[@robertwendal5894]

Using lack of housing to increase rents will ultimately have a negative affect on these landlords, even conservative government officials will look to come down on landlords for violating price fixing laws. The commerce clause gives the federal government authority if landlords are using a price fixing app. This will also directly impact corporate owned landlords that operate in multiple states. This isn't going to end well for lamdlords.

[@michaelk969]

You fundamentally don't understand the law of supply and demand.

[@Jti_23]

I inquired about a possible typo, error or the pricing method for my lease renewal, and they confirmed it's determined by an AI market data analysis system

[@n0SWA]

Too many parking lots, bad zoning, and too much decrepit commercial real estate. Free these up and we will have more land to build on in the cities, thereby normalizing rents.

[@hotelboz]

I’m selling my rental, it’s not worth the risk and headache it’s in Hawaii and you just never know what this socialist state will do next.

[@a104917]

Imagine being scared enough to sell one of the best assets on the planet.

[@moden321]

_"We need to punish landlords for reducing supply as a result of how much we punish landlords."_ - Government

[@renaehute1956]

The real solution is to allow investors to collude on new builds only. Himes built prior to 2015 should be grandfathered in to not using this software. That will encourage these hedgefunds to build, rather than purchase up single family homes

[@Xx0GsaburzxX]

There needs to be more supply and it should be more supply of single family homes WITH apartments. Not just apartments.

[@rmart0510]

Graham...so i have a brokerage account with 17 shares of VTI and a rollover IRA with VGT...i just want to know what else i could invest in terms of pairing them with something else to continue to grow my portfolio. Just some suggestions is all i ask. Thanks.

[@smittygt8058]

Graham! Do you have a starbucks on your desk??

[@alicehansen6905]

Hey Graham…. Can you fix your lighting for your react videos? Appreciate you!

[@samkawer]

I agree build more

[@Hector34562]

It’s ridiculous

[@LokkiXx]

If 90% of landlords utilize this software that links together via directly or even algorithmically to basically remove competition. Yes. This is an antitrust issue. Monopoly is what we avoid because it's the cancer of capitalism. If each piece of software works on it's own. Should using software be illegal, I think, No. This is another case where laws are not keeping up with innovation and progress and I do not even think you can blame the software, algorithm or the creator. It's kind of the idea. If we all knew what to charge to maximize profit. We'd charge it. That all being said. Taking human emotion out of core fundamentals is iffy. Also, if you build housing and charge what you should based on cost. As homes age and areas progress, prices adjust. Similar to Dollar Cost Average. If better homes are built. People upgrade and want to sell. Just build. Like you said, the government is shaking with the weight of years of kicking so many buckets. Politicians want to stay in power, so they cave to pressures. The fact that being a Politician is powerful is wrong. Working for others in mass, hearing issues of the people and turning this all into something to fight for, if done by the person who should be doing it. It should be hard, and frustrating and hopefully rewarding and meant for only some. We instead have people who fight and swindle and resort to things.... It's all for something selfish. For Most. Goverment needs to change and it needs to be voted for and it needs to be across every isle. It needs purely the peoples voice and votes need to be cast. Individually on each issue until it's agreed. Government became about making as much money as possible while keeping the people who voted for them in the dark. We need trust in our government or we will always return to this.

[@aphromew4502]

Love capitalism, but I had 'end game capitalism' and this is that. Owners are obliged to take RealPage's numbers, but if they all play ball, they win, then tenants lose. That sounds like collusion to me. When you have all these guys use the software reach a critical mass, it essentially becomes extortion.

[@james-wx6jh]

Build more? So that Graham can buy direct from the builder and be a bigger landlord maybe even uses realpage to maximize his profit...makes sense somehow

[@ojyochan]

I hope this suit succeeds. Housing is a NEED. We don't approve of life-saving medications manufacturers setting price maximization via algorithms and letting people die; nor should value be preserved in a rental market artificially by price maximizing algorithms.

[@michellecd4722]

@ojyochan THANK YOU!!

[@thedopplereffect00]

Lol, that's exactly how Canada's health care system works now. Line too long to get care? Now they have a new "solution" to the problem

[@nono-d8g3y]

To play devils advocate: This sounds more like a case against capitalism. If I am a business this would be a big down. I should be free to optimize my business to the best of my ability to have and be as profitable as possible.

[@bdtn342]

Build more housing so blackrick can buy all of them. This isn't going to change.

[@nuveeycharles9661]

Landlords charge the highest buck they can get! Greed

[@celularphone]

Landlords will lose. Juries don't like landlords.

[@tyjameson7404]

Graham is point on here….

[@MoCollections31]

Veve Digital Collectibles will fly soon. 👀💜🚀🔥 Disney X Epic Games X Veveverse

[@francestan70]

Wrong coffee

[@TheGrahamStephanShow]

It was a gift :o

[@scott8934]

@@TheGrahamStephanShowexcuses… 😂

[@Makenaessman]

I was looking for this comment to see if I was the only one that noticed😂

[@louisianabeast]

Still liking!

[@TheGrahamStephanShow]

thanks!!

[@djhg84]

Thank you for the interesting information. I honestly do not have an opinion on the matter due I stay neutral on business decisions.

[@klw1463]

Is that Starbucks???

[@Dre2011]

Capitalism is cool, but oversight is needed

[@christinab9133]

❤❤❤

[@jhar02]

I think you have a pretty level-headed opinion on this

[@Secret_Rare_Oreo]

L opinion Graham

[@jyan21]

With inflation and everything else, these tenants can't expect landlords to eat the cost of the property. If things like this are allowed to continue, there will just be fewer and fewer rentals which will organically keep rent moving higher. The solution to this is to significantly reduce the burdens of building new housing to promote a quick increase in supply to help drive prices down.

[@SigFigNewton]

Straight up subsidize construction. Housing was less expensive in the past because government helped lower cost of residential. It’s the solution, it has historical precedent, but these days ignorant people and greedy landlords just shout socialism at that idea. They don’t want to solve the problem, and it strangles local small businesses by leaving people with no spending money

[@bellal9808]

Hello Sir. I am waiting for your reply.

[@ronlarson6530]

If renters would stop approving every levy that pushes up property taxes, that would help a little! Insurance has nothing to do with tenants but they don't seem to understand that landlords are not going to absorb it all. Maybe if tenants would educate themselves of things that cost the owner more they would know it not about ripping them off. I am not a landlord, I have a paid off home that keeps getting more and more expensive to live in 😢😢

[@ElinWinblad]

Ppl don’t stop and think about say all the programs to help poor and even if they don’t use the program their rent goes up which hurts them more because the landlords property tax went up

[@tyjameson7404]

That attorney general is woke …..

[@disgruntledcashier503]

If cost is inversely proportional to supply, why would doubling the housing volume only decrease the rent by 30%? Shouldn't it decrease by 50%?

[@DoingItRight53]

You aren't understanding the argument lol. It's real estate corporations coming together and submitting their data into a system to fix prices when these corporations are supposed to be competitors. They are colluding together and using the software as their tool for that. That's illegal

[@steadymobbin.]

Graham

[@TheGrahamStephanShow]

First!!

[@steadymobbin.]

@@TheGrahamStephanShow 🙌