A Letter to the Reddit User Who Can’t Get an $ 875-a-Month Apartment While Making $15 an Hour
That happened to me too.
Can’t even get a $875 month apartment on $15hr.
Kinda aggravating. No company should do 15hr but even the “good” ones do. Like it’s industry standard for everyone to do 15hr. I feel like I can’t even get ahead, I hate the 3x income rule because it’s so f*cked up with how every landlord does this. This country is terrible. Idk how people survive, maybe I’m just bad at it.
Rant*
Internet stories aside. Here’s what happened to me.
In 2018 I was living alone in the center of Lisbon, Portugal. At the time, the minimum wage was €676.7 per month. 8120 euros annually. You were paid only 12 times a year.
But I remember just getting by in a €760 a month apartment (all utilities except electricity were included).
I felt like I was literally breaking even at the end of the month. I can’t imagine trying to survive on that now.
Friends suggested I find someone to share a room with. You shouldn’t have to do that, but be able to cut the rent in half and change the game. Said one. €760 a month becomes €380 a month, which was easily achievable. I denied these suggestions. Because I’d rather not have to put up with roommates. The work was enough.
I quit my job after a few months for a job worth 870 euros a month. It helped a bit.
I moved out of Lisbon from an apartment when it cost €740 a month, in a significantly better district and place for me and my girlfriend was curious to see what our old place was listed for, now it’s 1400 euros a month, 2 bedrooms 1 bathroom 800 square feet.
During that time I realized that landlords don’t set rental prices any more than farmers decide to set the price at which they sell their produce.
That is unless they choose to do so generously below market prices.
These figures are driven by supply and demand. Demand has increased tremendously and supply has been low, and now this has caused an affordability crisis.
So this may seem like a tinfoil hat on the surface, but this post by
says it all.Landlords make all sorts of mistakes. They misjudge a market. They underestimate initial and ongoing expenses. And, at day’s end, they’re stuck collecting rent the market — individuals acting independently of one another, yet making similar choices — bears.
None of this is to say you shouldn’t be a landlord. Whether you’re looking for a source of immediate, ongoing cash flow or you’re playing the long game as an investor, if you can do it, it could make sense. It is to say, choose where you become a landlord wisely because you don’t set your tenants’ rent, the market does.
The cost of housing is just the tip of the iceberg. You should worry less. If your income can’t keep up with rising rents, there’s a problem with your finances.
Let’s put a little more salt in the wound. Tighten your grip.
Companies pushing mass layoffs (as if millions of people hadn’t already lost their livelihoods during the pandemic).
Mortgage interest rates are through the roof. Because you know. Boomers love to say that it’s cheaper to buy than to rent. Probably not everyone will qualify for a mortgage because of “survival” credit cards, not to mention student debt.
Basic utility costs. Prices at Walmart and the like. Health insurance if you’re lucky. It’s very expensive.
Add to that the cost of commuting to and from any modern factory that’s paying good wages.
If you have children, childcare costs (average $1500/month), food, clothing, health, and education fees. Because schools now require you to buy EVERYTHING for your children. Say goodbye to free money from the state.
Teachers are grossly underpaid and overworked. The average school teacher has to work a second job for a living to teach someone else’s children.
Many schools are so underfunded that parents are buying textbooks, paying for cleaning supplies, buying stationery, etc. to compensate for the pressure.
Many are worried about replacing the workforce, considering the lower birth rate of the younger generation in recent years.
It’s a coincidence that most places require 2 incomes to pay the bills at the end of the month.
Especially considering the fact that the vast majority of landlords are actually property management companies controlled by large corporations and banking institutions. As I said, rents are too low.
Dear Reddit user, you’re not alone and your landlord doesn’t raise the price of rent because he wants to. The market does that.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.