Maybe Americans aren't dumb enough to keep buying houses?

Re:Maybe Americans aren't dumb enough to keep buying houses? by pstack on Saturday May 14, 2011 @07:18PM (#2548825)

Close. I think you counted an extra year in there. It increased 5% at the end of the first year, 7% the second, then 10% the third and fourth. I moved out at the end of my lease after the fifth year, so I don't know what the fifth increase going into the sixth year would have been. It started at $900 and five years later, it was $1,215. That's a 35% increase.

I lived in a more expensive apartment than is typical, but there is no housing anywhere near where I am (only apartments). I don't know if proportional increases are typical all over Denver, though. By the end of the fifth year, I was tired of seeing my rent increase at triple the rate of my raises.

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Re:Maybe Americans aren't dumb enough to keep buying houses? by presto8 on Tuesday May 17, 2011 @04:44PM (#2557833)

Thanks for sharing the interesting historical data! It does sound like buying may be the optimal choice in your real estate market, especially if you are planning on staying put for a long time.

I do think for the near future, rent will continue to rise as more people decide to sit out of the real estate market (waiting for more price drops to occur). Ultimately even this should correct itself as people start buying houses again since they will grow tired of increasing prices and decreasing availability of apartments.

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