NYC Isn't The Only Place The "Rent Is Too Damn High"; Euros And Canadians Also Struggle To Make Rent

Tyler Durden's picture

Jimmy McMillan III, the now infamous founder of the "Rent Is Too Damn High Party", as well as a self-described karate expert, Vietnam War vet, former postal worker and male stripper, has made it his mission for the past two decades to fight rising rents in New York City that have persistently pushed lower-income families out of Manhattan to make more room for America's Ivy-League educated, entitled snowflakes.

But according to recent data published by Harvard's Joint Center for Housing Studies (JCHS) and the  Organization for Economic Cooperation and Development (OECD), the Big Apple isn't the only place where a significant portion of the population is struggling to meet monthly rent payments.  In fact, per the JCHS, the U.K., Spain and Canada join the U.S. to round out the list of the top four countries in the developed world where 20-30% of renters spend more than 50% of their gross income on rent alone.

The US, along with Spain, exhibits more pervasive and severe rental affordability problems than the other countries considered. The analysis indicates that the greater cost burdens found among renters in the US, relative to most of the other countries, are largely due to greater income inequality, to more limited housing assistance programs, and perhaps to a housing supply consisting of units that are larger and better-equipped but that are consequently more expensive. This paper is largely focused on lessons for the US from comparisons to other countries, but hopefully it will be useful for those interested in comparisons among those other countries
 as well.

Rent

 

As Bloomberg points out, when you lower that threshold to 40%, the numbers are even more staggering and includes a large portion of Europe.

REnt

 

Meanwhile, Spain wins the award for the highest percentage of gross income that goes directly to landlords, while the U.S. and United Kingdom are a close 2nd and 3rd at around 30%.

REnt

 

That said, while a significant portion of renters across Europe receive some type of taxpayer-funded rent subsidy, renters in the U.S. just have to rely on their federally-subsidized student loans to cover their rent and spring break trips to Cancun.

REnt

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Lyman54's picture

Toronto and Vancouver the two largest snowflake/LGBTQP regions  in Canada, tend to skew the reality of rental costs.

evoila's picture

sucks for spain; rent is relatively cheap there.

Takeaction2's picture
Takeaction2 (not verified) Lyman54 Mar 10, 2017 10:01 PM

Move to Kentucky...Rent is $300 to $400 a month.  If you can't figure it out....MOVE.   It is that simple.  FREE MARKET YOU FUCKERS......Strong survive...the weak perish....am I being cruel, nope....This is how it works.  You can't punish the people who make good decisions....and take risks.  Right?...here in Oregon the snowflakes keep attacking the landlords....it is not their fault rents are going through the roof...it is market demand.  

ATTENTION ALL SNOWFLAKES.....DON'T MOVE TO PORTLAND OREGON.....Rents are too high, and all you will do is bitch.

Luc X. Ifer's picture

In February 2017 - just few weeks ago, both BMO and RBC acknowledged that officially Toronto is speculation market. Also, gov changed the tone and suddenly switched position on implementing foreign buyer tax in Ontario, they will do it. These are signals that shit is close to explode and the smart guys should pull out or not buy anymore.

Mano-A-Mano's picture
Mano-A-Mano (not verified) Luc X. Ifer Mar 10, 2017 11:24 PM

Rent too damn high?

Consider it Karma for the West continually propping up the greatest injustice of the 20th century.

https://biblicisminstitute.wordpress.com/2014/07/15/the-greatest-injusti...

kavlar's picture
kavlar (not verified) Mano-A-Mano Mar 10, 2017 11:24 PM

Life in the western world is truly becoming unbearable. Financially, that is.

techies-r-us's picture
techies-r-us (not verified) kavlar Mar 10, 2017 11:25 PM

Asia is the future.

Adullam's picture

Don't you ever give up? Spam somewhere else. And pick ONE of your many names and stick with it.

flicker life's picture
flicker life (not verified) Adullam Mar 11, 2017 8:09 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

Luc X. Ifer's picture

What is that 'biblicism institute' - u guys snort each others farts and get high before starting predicting meteo conditions of the next hour using as source of truth the old story book, kind of shamanism?!

Itinerant's picture

People cannot afford the rent because they don't earn enough. You would expect that the prices would fall, but they never ever do. Is that because housing just costs so much? NO. Most of the price is not in the building costs: there are plenty of buildings around that were paid off 100 years ago. It's the land under the houses [locaton!] that drives up the prices. But there are no costs associated with the land -- it's been here since creation.

Somewhere there's a giant market failure, otherwise supply and demand should find a new balance. Subsidized rents can only delay the moment a new balance is found. Of course, if I can't afford a BMW, I will have to make do with maybe a bicycle. Moving to rural Mississippi may make housing cheaper, but there's now income at all, so that doesn't work. There have to be other factors at work if people can't afford the rent and the price never goes down.

Maybe all the costs go into supporting the banks' and the Fed's balance sheet. Maybe no landlords go broke because the banks don't want to write down their assets and have the properties go to cheaper operators, and the banks can carry the mortgages at mark to fantasy values, preferring to refinance the owner or sitting on an empty property to taking a loss in a sale. In the wake of the sub-prime crisis there were a lot of voices advocating bulldozing 2 million homes, because it would be good for housing and the economy.

divingengineer's picture

Got a rental house in Kentucky, you're about right on the rent.

edifice's picture

Yeah, but who wants to live in Kentucky?

Luc X. Ifer's picture

The ones who want to survive what's comming. So, which demographic group r u, surviving or extinct?!

peterk's picture

You yanks have it good... real good.

I frequesntly see  houses in the USA for $150000, - $200000 for sale

ok they are in kentucky or what ever,  so thats why the rent is $3-400 a month as you say.

In Australia even in the country you will be paying rents  at 80% of sydney rents.. theres no difference almost.

Australians are just stupid dumb.... world class dumb

This propelrty  bubble, almost 25 years now long, has totally emgrossed the  politics, economy and psyche of  people here. NOTHING outside real estate  matters.

This Ustralian property bubble deserves to be written up  along side the TULIP BUBBLE AND SOUTH SEA TRADING company bubble as a footnote in history to mans short sightedness.

chosen's picture

You Aussies let too many fucking foreigners buy into your housing market, especially Chinks.  Now you are paying for it.

Xena fobe's picture

We in the USA do too.  Traitorous baby boomers.

Xena fobe's picture

No jobs in Kentucky.  The snowflakes are right. Property hoarding needs to be made a criminal offence. And price gouging is already illegal most places.

Funn3r's picture

What is it about "Free Market" fans that they are always loudmouths? You could have made your point equally well without all the fucker bitch snowflake.

Also can you not read - in some countries (such as my own) the government will subsidise 50 percent or more of people's rent. How is that your wonderful Free Market? The subsidy just pushes up rents and wastes my tax money.

cherokeepilot's picture

I don't know what area in Kentucky that you think the rent is $300 to $400 a month. 

I live in the Lexington Kentucky area and the average for a 1 bedroom apartment is $600 a month.  Want a 3 bedroom apartment?  The average rent for that is over $900 a month.  Maybe you can rent a Trailer in the country for The amount you mention but it ain'ta gonna be pretty.  I was paying $700 for a small two bedroom house in the country 5 years ago. That same house is now renting for $900.

GreatUncle's picture

Should be that weak TBFT should fucking fail too?

If you ain't capable you should perish also.

Actually if you just did away with the snowflakes and precious ones the human race would become way more capable and intelligent also.

buckstopshere's picture

Rent control is coming.

Landlords in Weimar Republic got destroyed by rent controls.

peddling-fiction's picture

Any rent over 20% of monthly income is wrong and abusive.

This applies to all social strata.

 

how_this_stuff_works's picture

Not when people expect free heat, electric, cable, water and sewage to be included in the rent, and in consideration of taxes and insurance, I don't think it is. They want all the creature comforts and someone else to subsidize it for them. Subsidies: the American way anymore.

Homeowners are certainly paying more than 20% of monthly income in living expenses.

peterk's picture

Thats rent control is a european semi socialist policy.

Dont think that can happen is Australia,  US , UK canada etc

The banksters own the place already

You gave to get the socialists in power politically for that to occurr... not in our lifetimes imo

pitz's picture

Was it rent controls, or was it simply there was no income available for rent (it all went towards food and the other necessities of life), and financing was completely unavailable, hence, prices and rents collapsed?

ebworthen's picture

In case you want the picture of Jimmy McMillan: 

http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2016/11/10/Rent%20is%20too%20damn%20high_0.jpg

(Link opens in new window/tab.  No, I am not the Author, and yes - the Rent is too damn high!)

knukles's picture

Isn't he Samuel L Jackson's half-brother?

ebworthen's picture

I don't see it here, but after reading more, I think I like this guy:

"James "Jimmy" McMillan III (born December 1, 1946)[1] is an American political activist, perennial candidate, karate expert, and Vietnam War veteran, as well as a former postal worker, stripper and private investigator from Brooklyn, New York."

His favorite film is apparently "Deep Throat"; um, well, yes...a classic.

Source:  https://en.wikipedia.org/wiki/Jimmy_McMillan

divingengineer's picture

A real renaissance man, funny, I always thought he was a random nut.

Burltron's picture

I live in Ottawa.  Just bought a three bedroom house in the suburbs for way too much money.  I received my first water bill from the city and it was $300 for two months. They are effectively drowning the middle class. Our hydro power bills are hundreds of dollars a month, while we sell or electricity to the US for pennies to the dollar. It's sick the position they are putting us into. I read an article that 78% of the power company employees make over 100k a year. Pause and think about that for a moment. That's not how you build an organization. I feel cuckolded for trying to raise a family. Daycare is 400$ every two weeks for one child and that is cheap for my city. These assholes are running away from us unchecked and it's absolutely out of control.  If I was one of our Syrian immigrants were so proud of, I'm not even racist, I get dentist for free, housing, clothing and whatever else.

Silversides's picture

Same here in Calgary...then add rising property taxes, business taxes and minimum wage with a carbon tax as a fucking cherry on top. Good thing I'm stocked up on bullets, bullion and beans because something has got to give very soon to stop these cunts, and it ain't gonna be pretty...

Burltron's picture

I gots my guns too silverside. Comforting to know it's not just me.

Déjà view's picture

Chinese...Calgary RE 'Stampede'?

Lyman54's picture

The first four words of your post sums it up.  Ontario voted lesbian and elected a sociopathic nut.  You live there.  What is your next move.  Liberal sociopaths tend to congregate.

Burltron's picture

My next move is to stay here and keep employed.

Lyman54's picture

When you say   "I am not even racist"  we know you are beyond hope.

Burltron's picture

Obviously I'm racist. Jesus.

sagramore's picture

A good JW and Mormon knows when to move on. So does a good SJW.

sagramore's picture

You're on the wrong side of the river, buddy.  Meet a cute French girl and get a house in those new developements up on Pink.

NoDebt's picture

When real estate just becomes another hot money asset class it gets stockpiled, utilization rates be damned.  If you can outrun your taxes on the place with price appreciation why would you ever need to use it for anything productive (like just living there)?

 

 

underthevolcano's picture

So how do the Swiss do it? They have the best numbers by far and away.

mvsjcl's picture

You don't get to live there unless you're rich? Maybe that 4% is the servant class?

divingengineer's picture

Isn't Portugal cooking up a 60% tax on unoccupied homes?

Mareka's picture

Canadians love importing immigrants so they have more competition for housing.

Luc X. Ifer's picture

You got it indeed. Gov is desperate, they know Canada sits on a gunpowder barrel housing market wise and the only solution they have to keep the can rolling is to keep a continously increasing mass of immigrants willing to submit into the stereotype of owning a house. The new immigrants would practically work for lower and lower salaries spitting blood 24x7 and associate and live crowded like rats so that they afford the mortgage or the rent. This is why the gov practically eliminated the incentives for euro-caucasians to search residence in Canada and started to promote aggressively multiculturalism and incentives for Asian and Muslim areas populations to see Canada as a desirable residence, because these people are perfect conditioned cattle into farming - modern days slaves to keep rolling the system for the benefit of the 1% or even les who trully own Canada.

SmittyinLA's picture

Problem is the "rent is too damn high" people keep voting for more new renters and no more housing.

Dicks

Savvy's picture

"Voting" for more new renters? Canadians never had a goddamn say in whether migrants get in -or how many- and neither did anybody else.

The fucking gov just does wtf ever it wants and raises taxes to do it.

SmittyinLA's picture

Figure 7 makes the case for no immigration