posted by geeblock
companies still seem to be raking in billions while claiming "inflation" so idk if i totally buy all of the price hikes. Rent is crazy in columbus right now, the house next to ours was being rented by a friend of ours the last few years and the owner raised the rent by 700$, so my friend bought a house and moved out. The house has now been vacant for a year. I know others paying over 1500 for 1 br, and 2300 for 2br in dublin and hilliard. It does seem to be slowing the last couple of months tho.
I'm not saying $700 hike is valid.
I will say that the last 4 years my home owners insurance and property taxes have raised my escrow so much that my mortgage cost has gone up by 22% even with the obvious principle/interest total staying the exact same.
About $300 increase per month, so if the housing around you is worth 2x mine (probably realistic, mine is $165k) I can easily see the taxes/insurance going up $600 per month over the last 4 or so years. Property tax and home owner's insurance has gone up a crap ton in the last 4 years, mostly due to covid/inflation I'm sure.
All I got from my insurance company, whom I've had zero home owners claims in 16 years, is that "building material cost". I even tried to shop to other well known insurances and they couldn't do any better, so I'm not being gouged.
I can't speak for $700 increase, but if the taxes and insurance have gone up like mine I can see why the rent had to go up as well.
If I was renting my house out, 4 years ago I could have rented it for $1k and made $200 profit per month. Now I would be losing $100/month if I didn't change the rent. I would have to raise rent to nearly $1500 to make same percent profit, that's $500 increase in 4 years.
Now that I do the math, I understand $700 increase, as much as it sucks for the renters. Most land lords I know own just a couple (2 or 3) properties, they can't take a loss now just because life sucks for the renters too.