Secrets of More Money

Why Rents Don't Keep Up with Inflation Rental demand is strictly limited by household incomes, which are not growing as fast as property values or the key rate. This creates a structural imbalance: rents cannot rise proportionally to the owner's costs of purchasing the apartment. As a result, owners fall into a trap: selling the apartment for a profit is difficult, and raising the rent to a profitable level is impossible, as the tenant will simply move elsewhere. The tenant is not just a housing user, but a recipient of a hidden subsidy from the owner, who cannot exit the asset. Understanding this mechanism makes renting a tool for preserving your own cash while the real estate market looks for a new bottom. #macroeconomics #market #housing