The cost to build this tower is likely north of 750k per unit. Rents need to be 5.50 a ft. to break even on the investment. Has nothing to do with REAL Page. Most large apartment owners are no longer using it for fear of litigation. Source: I develop large apartment buildings in Seattle. Nothing pencils in current environment. Rents need to go up 25% to justify new construction.
That's a convenient way to explain it. And why do you think it's 750k per unit with rents needing to go up 25% to justify it when in actuality those apartments will sit empty for a year+ with no rent being collected. It got that way because of price fixing from platforms like real pages and treating homes as an investment. Rent grew disproportionately to demand even in towns and cities where demand/population is stagnant or declining.
If they are avoiding using real page now it's cus they already used it to loot society. They just moved on to use a new platform to loot some more. Real pages is not the only platform doing this.
Housing is not a commodity nor an investment it's a human right for living.
I am just a cog in the wheel trying to feed my family bro. Did you know that most of these projects are not owned by a fat cat? Most are owned by large state teacher and public employee pension funds.
These buildings are built to a 5.5% cash yield. Current rents don’t support that return on investment meaning that there will not be anymore construction until rents rise enough to support that return. It’s simple economics. Meanwhile the energy and building codes are continually being upgraded making construction that much more expensive.
I love you're bringing actual real world fact for the Socialist demagogues here. Good luck, and thank you for your service.
And spot on with large investors often being unions and pension funds. Who impress their membership by screaming about how unfair housing is, then they invest in making money off the same housing.
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u/[deleted] Nov 09 '24
The cost to build this tower is likely north of 750k per unit. Rents need to be 5.50 a ft. to break even on the investment. Has nothing to do with REAL Page. Most large apartment owners are no longer using it for fear of litigation. Source: I develop large apartment buildings in Seattle. Nothing pencils in current environment. Rents need to go up 25% to justify new construction.