Great! The working poor do not have it hard enough with food and gas prices, now rents are in a sharp increase (USA Today). Rental units being built this year are less than a third of what they have been (130,000 vs 40,000) so the great “invisible hand” of supply and demand is telling the landlords what their price should be. This instruction gets the same credibility as Moses did when he came down from the mountain with the ten commandments.
I would like to see a survey of rental rates in Lancaster city compared with renter’s income. What is the percentage of net income (after taxes) that people are paying for housing? What is the condition of these units? What are the utility costs?. Renters pay real estate taxes in their rental payments so the higher city are taxes are on them.
Related questions: Does poverty weaken family life? Does poverty encourage abortion? Is divorce rate higher among the poor? Are addiction rates higher? Crime? Violence? Incarceration? Stress? Single parenthood? Is it God ordained that the poor live in misery while those that feed upon them live in increasing luxury?
If our religion was Christian or Jewish or even the vilified “secular humanism” we would not tolerate these conditions. But our real religion, which trumps them all, is our nationally enshrined, and universally accepted, voodoo religion of laissez faire capitalism, with all its bitter, simplistic, and jungle ethics. Our one true god is Money, and we daily pay it homage with human sacrifices on a scale never imagined by the most primitive religions in history.
This is why we tolerate the wretchedness of so many millions of our fellow citizens . ..god has ordained that this be so! And all the people cried out Amen, Amen . . . . . while the high priests passed the baskets and carried them off to their tabernacles.
And people wonder why we are in so much trouble.
EDITOR: Capital gains on the sale of real estate is 15%. So rather than pay about 33% on income from profits, it pays to sell the apartment complex. It goes to the highest bidder, who in turn needs to either cut back on services or ratchet up rentals to meet their debt service and make some profit.
Furthermore, in anticipation of selling the apartment complex, the owner has the economic inducement to minimize maintenance expenses and service. This leads to deterioration of the property (and the tax roles.)
However, some investors keep their properties for decades. They are likely to invest in their upkeep and improvements. Also they value long term tenants, so they are careful not to price gouge. The Watchdog’s firm falls into this category. Not an advertisement; just an example.
This is also the type of poverty (barely surviving) that leads to suicides and suicide and murder of other family members.
It’s also worth noting that nearly every entity discriminates against renters. Rental properties in Lancaster City are subject to a $50/year rental fee plus inspections that required of owner occupied units. Utility companies charge higher rates for electricity and gas to rental properties. The PA state charges sales tax on heating oil for rental units, but not owner occupied properties. Rental properties are excluded from casino-based school tax rebates. Lancaster city charges two apartments perhaps with only one tenant each twice the garbage rate of a single family home with perhaps 10 occupants.
Sadly, both state and local governments discriminate against renters. It’s particularly unfair in the Lancaster city where reportedly over half of all properties are rental units.