Imagine if you raise your rent 20% per year for 5 years because you have to build in inflation into your thinking - whether there's 20% inflation or not, mind you (as there wasn't when I first started long-term leasing, not anywhere close, yet it was in the contracts in my first rental in 2007). That right there is a 120% increase in 6 years, over three long-term contracts. Now add in everybody doing it and rental contracts being staggered as far as when they start and end and you start seeing other owners who are renting out their apartments at higher prices than what you're renting out, and the average inflation contract charge going from 20% to 30%. You're between contracts and so you raise the rate significantly (happened to me in my last apartment after 4 years living there - the owner tried to raise it 70% for my third contract and I told him to stick it).
That sure lends to the increasing price of rentals.
It's ridiculous. It's a symptom of 1) the unstable, uncertain economy (not just since the 2001/2002 time, but way longer) and 2) many people who want to take advantage of the unstable economy to justify raising prices. It's reflected in salaries as well and helps push up the real inflation created from "printing" money by inflating the basic cost of housing significantly, usually one of the biggest single-item expenses in anyone's budget..
It really makes things difficult for everyone. And yeah, such a strong, robust economy (Matias).
Welcome to Argentina. The Paris of the South, yet soooo affordable!
But RichardRPTownley, never fear! Scioli will save the day by forcing that evil inflation down to single digits and will force those evil banks to give regular people like you and me access to long-term, low-interest rate mortgages! (according to his campaign, anyway)
