Years ago, when I was an economics student, we were told perfectly logical stories about paradoxical linkages in the global economy. How, for example, heavy rains in Brazil could affect the stocks of startups in Singapore. What we weren't told was how the lettering changes in your local cafe could sky-rocket your rent...
Well, today we're fixing that mistake with the TikToker @tedsthetics, whose video about indirect signs that your rent is about to go up went viral with over 211K views. Okay, if you're interested, let's figure it out together.
More info: TikTok
The author of the post, a blogger from Australia, lists 5 pure signs forecasting an upcoming rent increase in your area
Image credits: tedsthetics
So, the Original Poster (OP) is an Aussie and has a catchphrase "...and you can't change my mind." However, the video we're going to tell you about today is relevant not only for Australia, but for almost any country where there are landlords, tenants, and rent issues (i.e. worldwide). And you can't change my mind!
According to Teddy, there are five telltale signs that you can look for to anticipate a significant rent hike in your area:
Image credits: tedsthetics
1. The appearance of a Guzman y Gomez or Fishbowl restaurant chain (as well as similar establishments of other chains in various countries). “Your landlord is licking their lips and it’s not because of the food,” Teddy notes.
2. Stylistic changes at the local vet clinic. According to the author of the video, if the reception area starts to acquire a 'spa aesthetic,' a rent hike is just around the corner.
Image credits: tedsthetics
Image credits: tedsthetics
3. If the local coffee shop changes its menu to a letterboard, there's another clear sign. "They're about to milk you and charge you extra for alternative milk," the author assures viewers.
4. Various Pilates and recovery centers start appearing in the area - be prepared for another rent review letter, Teddy believes. Even if you don’t use the services of these centers at all.
5. And finally, the last but not the least - Tesla electric car charging stations. "Your rent? Double. Bad drivers? Triple!" Teddy summarizes pathetically.
Image credits: tedsthetics
Most of these signs are related to infrastructure improvement - real or alleged
Well, of course, the original poster exaggerates a bit, but changes in infrastructure almost always lead to an increase in the cost of housing in any area.
"There is such a thing as a 'social order' - when, simultaneously with the construction of expensive housing in a particular area, parks are being improved, roads and sidewalks are being repaired, new shops and cafes appear," says Yulia Shurinova, a real estate agent from Odessa, whom Bored Panda asked for a comment here.
Image credits: tedsthetics
"This is not surprising, since the infrastructure is changing to increase the solvency of residents, and developers expect that this will also increase the prestige of the particular area. And if the area becomes more prestigious, then the price of housing, as well as the cost of rent, increases."
Image credits: tedsthetics
"However, the area doesn't always really become better in terms of quality of life, but, alas, this has almost no effect on the increase in rent," Yulia sums up.
This is somewhat reminiscent of the attempts to create regular armies in the 18th century in some countries, when the 'reformers' were concerned not so much with the training of soldiers and their weapons, but with how stylish they would look and how impressively they would march. With all the ensuing consequences...
Image credits: snowing / Freepik (not the actual photo)
Statistical data shows that rent increases from year to year, with 52% of Americans spending over 30% of their income on rent nowadays
Of course, this all sounds pretty funny - if it weren't so sad. So, according to Forbes, based on statistics from the U.S. Department of Housing and Urban Development, today 52% of renters in the U.S. spend over 30% of their income on rent. The official terminology for such renters is 'rent-burdened.'
And, according to Zillow data, the typical monthly rent nationwide is $2,011, with a 3% change from last year. However, infrastructure really does matter - Forbes claims that "American renters report living in a rental property close to shopping, services, and/or leisure activities is of higher importance (56%) than living close to family and/or friends (39%)."
You can watch the original video here
Many commenters on the original video completely agreed with Teddy, noting that in the areas where they live, there is also a tendency towards 'increasing housing prestige.' "I have all of these things in my area," one of the responders wrote. "This definitely explains the extra $70 a week!" another one added quite sarcastically.
"All these things minus the fancy vet have popped up near me," one more commenter reminisced. "I'm lucky I don't rent but I feel for those who do." And do you, our dear readers, also agree with the author of this video? Please feel free to share your own thoughts in the comments below this post.
People in the comments mostly agreed with the author, telling him that they had faced such changes in their areas as well
Image credits: Karolina Kaboompics / Pexels (not the actual photo)
Image credits: mrsiraphol / Freepik (not the actual photo)
