Raising Rent In Lakewood

[Yakov15]

What is the other choice? To live in a car?

To stop the crazy bidding wars that are going on.

[aygart]

To stop the crazy bidding wars that are going on.

How? Those bidding obviously fell that it is either worth it  or that they have no choice of they want an apartment that meets their needs and wants.

[Yakov15]

How? Those bidding obviously fell that it is either worth it  or that they have no choice of they want an apartment that meets their needs and wants.

Idk.
But definitely the first thing is to realize the issue at hand.

[Dave321]

when i got married about 8 years ago my rent was 850 for a new 3 bedroom. after the first year my landlord lowered it to 750 bec he said the market is lower. only in lakewood

[jye]

Exactly my point. What exactly are we gaining from the constant bidding war?
We’re just coming out with a less nice house than we can really afford. Or an apartment that we’re overpaying for.

במחילת כבודך I don’t thing you took any courses in economics in elementary school or mesivta so I’ll explain in a nutshell (with some oversimplification.)
It’s called supply and demand. When there is a chicken shortage and there are 100,000 people who are interested in making chicken for dinner (and can afford to pay $2.49 lb- in a poorer society you have less demand) and only 70,000 packages of chicken available, the price of chicken rises to $3.99 a lb. and 30,000 people decide that maybe they’ll have fish or turkey for dinner so supply and demand balance out.

At $800 there are just too many potential renters looking for apartments in Lakewood. Rents start to shoot up and eventually reach a point where some singles start sharing apartments or staying home with parents, some people start putting apartments they were keeping for themselves back on the market or finishing their long unfinished basements to capitalize on $25,000 of additional income a year. New construction with rentable basement is incentivized since it adds a meaningful sum toward the monthly mortgage. Some young couples are priced out of the market and start looking at places on the periphery of Lakewood. Others abandon plans to move to Lakewood entirely. https://forums.dansdeals.com/index.php?topic=21675.0 starts getting a little more active. Slowly supply and demand begin to equalize. Sometimes the supply ends up exceeding the demand, vacancies increase and prices drop until they reach a new equilibrium.

[aygart]

Idk.
But definitely the first thing is to realize the issue at hand.

Everyone recognized it long ago.

[Yakov15]

במחילת כבודך I don’t thing you took any courses in economics in elementary school or mesivta so I’ll explain in a nutshell (with some oversimplification.)
It’s called supply and demand. When there is a chicken shortage and there are 100,000 people who are interested in making chicken for dinner (and can afford to pay $2.49 lb- in a poorer society you have less demand) and only 70,000 packages of chicken available, the price of chicken rises to $3.99 a lb. and 30,000 people decide that maybe they’ll have fish or turkey for dinner so supply and demand balance out.

At $800 there are just too many potential renters looking for apartments in Lakewood. Rents start to shoot up and eventually reach a point where some singles start sharing apartments or staying home with parents, some people start putting apartments they were keeping for themselves back on the market or finishing their long unfinished basements to capitalize on $25,000 of additional income a year. Some young couples start looking at places on the periphery of Lakewood. Others abandon plans to move to Lakewood entirely. https://forums.dansdeals.com/index.php?topic=21675.0 starts getting a little more active. Slowly supply and demand begin to equalize. Sometimes the supply ends up exceeding the demand, vacancies increase and prices drop until they reach a new equilibrium.

Sorry if I don’t come across as an educated individual. Not sure how that should affect my arguments at hand though.

[avromie7]

במחילת כבודך I don’t thing you took any courses in economics in elementary school or mesivta so I’ll explain in a nutshell (with some oversimplification.)
It’s called supply and demand. When there is a chicken shortage and there are 100,000 people who are interested in making chicken for dinner (and can afford to pay $2.49 lb- in a poorer society you have less demand) and only 70,000 packages of chicken available, the price of chicken rises to $3.99 a lb. and 30,000 people decide that maybe they’ll have fish or turkey for dinner so supply and demand balance out.

At $800 there are just too many potential renters looking for apartments in Lakewood. Rents start to shoot up and eventually reach a point where some singles start sharing apartments or staying home with parents, some people start putting apartments they were keeping for themselves back on the market or finishing their long unfinished basements to capitalize on $25,000 of additional income a year. Some young couples start looking at places on the periphery of Lakewood. Others abandon plans to move to Lakewood entirely. https://forums.dansdeals.com/index.php?topic=21675.0 starts getting a little more active. Slowly supply and demand begin to equalize. Sometimes the supply ends up exceeding the demand, vacancies increase and prices drop until they reach a new equilibrium.

I know someone who just put 2 basement apartments in their 15 y/o house.

[Yakov15]

Everyone recognized it long ago.

From this thread it doesn’t seem so.

[aygart]

Sorry if I don’t come across as an educated individual. Not sure how that should affect my arguments at hand though.

You haven't made any arguments at all. All you have said is that high rent isn't good for renters.

[aygart]

From this thread it doesn’t seem so.

How so? Just saying that something isn't good is meaningless.

[Yakov15]

You haven't made any arguments at all. All you have said is that high rent isn't good for renters.

I’ve said the bidding wars are terrible for us. And it’s in our best interest to bring back the idea of “not bidding against my neighbor”.

[jye]

Sorry if I don’t come across as an educated individual. Not sure how that should affect my arguments at hand though.

It’s not a question of credentials. It’s just that your argument goes against basic principles of economics. I can make the argument that the government ought to hire 500,000 workers and just print $100 bills יומם ולילה and hand them out to everybody and then we will all be rich and all of our problems, rent, tuition, shidduchim, will be solved. It sounds logical on the surface but goes against all principles of economics and is not a valid argument.

P.S. Yes I know. Hold all of your comments for the politics thread:)

[aygart]

I’ve said the bidding wars are terrible for us. And it’s in our best interest to bring back the idea of “not bidding against my neighbor”.

Right we know it isn't good but you have nothing at all to say about why it is happening and how to avoid it. Just repeating that out isn't good doesn't change that this is all you have said.

If a person needs a place to live and their choices are to bid higher or sleep in a car what should they choose?

[Pony]

On the topic of bidding wars on houses in the Lakewood area, I would like to point out something important. As someone who has moved to one a new outlying neighborhood in the last year or so, I get many calls from people looking to buy who can't afford more. I have seen many yungeleit desperate for a house, living in basements or apartments with growing families get outbid again and again by frum investors. While everyone has the right to make a buck, my feeling is that one should look long and hard in the mirror and see if this is what they would want done to them if the roles would be reversed. Vahavta lreicha komocha means kamocha! Nobody would want this done to them or their up and coming neighborhood. I would submit that perhaps this can go into the novel brshus hatorah of the Ramban.

[Euclid]

On the topic of bidding wars on houses in the Lakewood area, I would like to point out something important. As someone who has moved to one a new outlying neighborhood in the last year or so, I get many calls from people looking to buy who can't afford more. I have seen many yungeleit desperate for a house, living in basements or apartments with growing families get outbid again and again by frum investors. While everyone has the right to make a buck, my feeling is that one should look long and hard in the mirror and see if this is what they would want done to them if the roles would be reversed. Vahavta lreicha komocha means kamocha! Nobody would want this done to them or their up and coming neighborhood. I would submit that perhaps this can go into the novel brshus hatorah of the Ramban.

That's the mesorah of Lakewood. A few frum investors making millions (billions at this point?) at the expense of everyone else.
https://forums.dansdeals.com/index.php?topic=59628.0

[flyingace]

There are communities where frum agents will not show houses that a frum person put in a bid on until the bid is
rejected.

[whacked1]

There are communities where frum agents will not show houses that a frum person put in a bid on until the bid is accepted or rejected.

Do you mean once a bid is accepted by not finalized by attorney review? Generally you have a "best and final" deadline.

[yuneeq]

On the topic of bidding wars on houses in the Lakewood area, I would like to point out something important. As someone who has moved to one a new outlying neighborhood in the last year or so, I get many calls from people looking to buy who can't afford more. I have seen many yungeleit desperate for a house, living in basements or apartments with growing families get outbid again and again by frum investors. While everyone has the right to make a buck, my feeling is that one should look long and hard in the mirror and see if this is what they would want done to them if the roles would be reversed. Vahavta lreicha komocha means kamocha! Nobody would want this done to them or their up and coming neighborhood. I would submit that perhaps this can go into the novel brshus hatorah of the Ramban.

On the flip side, without investors taking risks on new neighborhoods, many of them might not have developed into frum areas, and certainly not as fast as they did. In addition, investors are never on equal ground with a owner-occupier. An investor needs a positive return, and they need to manage that at higher rates and with more financial requirements than a regular homeowner.

If you’re getting outbid by an investor, you were bidding too low in the first place. Would still like to see investors not bid against those that can’t afford more,  but they aren’t required to do so by any halacha (that I'm aware of. Furthermore, not always are they made aware, and it’s none of our business anyways. I do take issue if the investor gets preferential treatment from the  brokers or township.

[flyingace]

Do you mean once a bid is accepted by not finalized by attorney review? Generally you have a "best and final" deadline.

Don't know exactly...I modified my post to say rejected. But, yeah, they won't show a house if someone is in middle of dealing.