Metro Phoenix evictions hit a 15-year high

Economy
1

It seems jobs and the gov’t spending part of GDP are not the only things surging.

I’m thinking if people are being evicted in record hwat at near-record numbers . . . maybe wages aren’t keeping oace with inflation.

Why would this happen in Phoenix of all places?

2

https://www.google.com/amp/s/www.yahoo.com/amphtml/now/manager-95-phoenix-airbnbs-stunned-210658130.html

In November, Harvey said, one of his clients bought a 1,600-square-foot three-bedroom home about 10 miles from the stadium for $388,000. The client had anticipated he’d be renting it out for $1,000 a night, but it’s sitting empty this weekend.

Phoenix rent hyper-inflated because properties were bought specifically to price-gouge. Locusts destroyed the ecosystem.

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3

Artificially low rates DO attract locusts.
(They work this way.)

  1. Economy is bad. Risk is high.
  2. Free market responds with higher rates reflecting the increased risk.
  3. People who have never run a business, and who have made a career out of bad mouthing the free market, declare "The free market is stupid. Banks are evil. . . I will artificially-lower rates to help the economy.
  4. Locust swarm begins.
    .
    .
    .

But in the case of Phoenix what we know is that last year people could afford to pay their rent. This year they cannot.

How can this happen. Why did things suddely get worse for working rent-paying folks in Phoenix?

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4

I am not sure getting evicted in Phoenix is actually a bad thing.

Take what money you have left, and take your car, a plane, a bus or a train and go to somewhere that is not a ■■■■■■■ sweltering desert. :smile:

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5

But it’s a dry heat…

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6

When did the moratorium on evicting renters end? Add to that significant increases in rents the last two years.

7

Big investors have been on an apartment buying spree in the Phoenix area, paying record prices and hiking rents. Many landlords stopped taking tenants’ housing vouchers in apartment complexes that have long been the Valley’s most affordable.

8

Seems to me big investors would be the MOST likely to take vouchers.

Give voucher to Ma & Pa Kettle and they are likely to say “What can I do with this. I wanted cash.” (Big company says “Give it to accounting.”)

Give them a list of rules the building needs to comply and Ma & Pa will likely say “What’s a GFI? Who can install a pressure relief mounting? Okay On Thursday I’ll call someone who might know.” (Big company says “Have one of the maintenance teams handle it.”

More to the point whether big companies buy/build 1 property or 1 million properties that does not make rent suddenly unaffordable. “Uh there used to be one apple for sale, now that there are a million the price went up.”

Safe bet, there is something going on with the underlying economy.