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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (242970)	4/2/2010 11:49:29 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 306849

i am talking about the renters, not the landlords (the vast majority of rentals are multi-family dwellings owned by nationwide REITs in any case, not DIY mom and pops with a couple rental houses). the govt doesn't spend trillions to finance 90% of renters as it does for homebuyers. most renters actually have to be able to afford their rents with no help from the govt. if all renters received as much aid as homeowners, we would have crazy situations analogous to the house price to income ratio in excess of 10x for the entire state of Clownifornia in 2005. fortunately the govt does not provide "assistance" to the vast majority of renters, so rents are set by supply and demand, at levels renters can afford. this is very different from the housing market, which is distorted by govt "assistance" and is therefore much too expensive.