[quote=livinincali][quote=utcsox]
If the rent is increasing at the rate twice as fast as the average wage growth and rent is a significant part of household’s budget, how in the world this has not already cut into disposable income of average household?How in the world the situation is not dire?[/quote]
It will resolve itself one way or another. Either rents will stop rising at a faster rate or wages will catch up. Two exponential curves run away from each other pretty fast so it won’t stay this way for long.[/quote]Agree. Up until now, there have been a lot of slack in the labor force, which allow companies to keep wages down. However, through birth and migration, the demand keep on increasing why supply isn’t keeping up, which is what’s cause the rent to go up. Simple supply and demand. Sooner or later, either people will be fed up and leave, which would cause a decrease in demand, which would then drive down price or at least keep price stable. Or, companies will grow and increase income. We’ll see soon enough.
