Some cities have required that new construction set aside a certain amount of housing for people who have lower incomes. The trouble there is, you know, it just sort of gives an incentive for the landlord to actually boost the rents for every other unit to make up for it. So I'd say the jury's out, but that is sort of a major way that they've been trying to do it.
The price of everything is going up, but few things have risen as fast as rent. The rule of thumb used to be that housing shouldn’t eat up more than a third of your paycheck. But these days, a lot of people are handing over half or more of their income to the landlord. Why has rent climbed so high so fast–and is there any end in sight?
Real estate reporter Prashant Gopal joins this episode to explain how we got here–and offers a dose of cautious optimism for renters. And Neil Callanan, who covers corporate finance, gives a broader view of the consequences of turmoil in commercial and housing markets around the world.
Learn more about the story here: https://bloom.bg/3whXo66
Listen to The Big Take podcast every weekday and subscribe to our daily newsletter: https://bloom.bg/3F3EJAK
Have questions or comments for Wes and the team? Reach us at bigtake@bloomberg.net.
See omnystudio.com/listener for privacy information.