Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
Yeah, I moved out of my parents’ place in the early 2010’s. My rent was $1000. It was a shithole, but I could at least afford it. I just checked that area, and found that my old unit is up for rent. They’re demanding $2100 for it now.
It’s not just going up due to inflation adjustments. Adjusting for inflation from 2010 to now would have it closer to $1500. And that’s being generous (I added a few years to the inflation calculation) because I moved out in the early 2010’s, not exactly in 2010.
And looking at the photos they have posted for the unit, it’s still a shithole. I’m pretty sure the awful stove/oven in the kitchen photos is the exact same one I used back in the early 2010’s. The stove even has the scuffed dent in the corner from when a dumbbell weight rolled off the top of the fridge and landed on it. So it’s not like they’re actively reinvesting that money back into the units to increase value to the tenants.
So somehow the slumlords have managed to tack on an extra ~$7200 in annual profit per tenant. that’s a significant amount of cash, especially when you consider how long the prices have been inflated.
Yeah, I moved out of my parents’ place in the early 2010’s. My rent was $1000. It was a shithole, but I could at least afford it. I just checked that area, and found that my old unit is up for rent. They’re demanding $2100 for it now.
It’s not just going up due to inflation adjustments. Adjusting for inflation from 2010 to now would have it closer to $1500. And that’s being generous (I added a few years to the inflation calculation) because I moved out in the early 2010’s, not exactly in 2010.
And looking at the photos they have posted for the unit, it’s still a shithole. I’m pretty sure the awful stove/oven in the kitchen photos is the exact same one I used back in the early 2010’s. The stove even has the scuffed dent in the corner from when a dumbbell weight rolled off the top of the fridge and landed on it. So it’s not like they’re actively reinvesting that money back into the units to increase value to the tenants.
So somehow the slumlords have managed to tack on an extra ~$7200 in annual profit per tenant. that’s a significant amount of cash, especially when you consider how long the prices have been inflated.