Is the shattered U.S. economy driving people into the streets?

in economics •  2 years ago 

Originally posted on Quora July 11, 2022

Specifically, out of control real estate speculation is driving people away from big metros or into homelessness. Just a $100 or 5% increase in rent YTD is associated with a 9% increase in homelessness.

A 5% rent increase would push 2,000 Angelenos into homelessness

Homelessness: Better HUD Oversight of Data Collection Could Improve Estimates of Homeless Population

Now imagine instead of 5% or $100 a month YTD increase rents rise anywhere from 14% nationwide to 40% in big metros like Miami and Austin and several hundred to over a thousand dollars per month YTD. You don’t have to imagine because that’s our current reality.

Rents Rise 14% in December - Biggest Jump in Over 2 Years

There are two solutions: sprawl or value capture and we’ve been doing the former for the past 250 years with worse results.

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