American Dream
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American Dream
Throughout history, Americans hoped of having a piece of the American Dream. The American Dream is a dream connoting hope for prosperity and happiness symbolized particularly by having a house of ones own. In today’s market place, only 14% of Californians are able to achieve this dream. (Lansner, 2006) This has resulted in an increase in renters, rental owners seeing an opportunity to make money, and the rise in the cost of rent. Rent control would be an effective way to keep rent at an affordable rate in our community. As a manager in this rental industry, these issues have had a negative impact on my views of this changing market.
As the price of homes become out of reach, I have seen a drastic rise in the number of people looking at renting apartment homes. My job as an apartment manager is to rent apartments. This has become increasingly difficult over the past year. However, there is a definite need for available apartments due to the rise in rent. In the past six months, I have found there are less people able to afford the new rent increase. As leases come up for renewal, tenants have to pay higher rent rates, which force many renters to find more affordable housing. In my complex, the owners have increased rent 9%. Rent accounts both directly and indirectly for almost 30% of the overall consumer price index, and is one of the main forces pushing prices up. (Porter, 2006) On the other hand, since the price increase is not limited to only my complex, there are also those renters who have found they have no other choice but to “stay put” where they are at, for fear, they cannot afford another place.
Another point to mention is the money property owners are making. Since occupying demands are rising here faster then supply, property owners are able to justify these rate increases via supply and demand.(el-Hasan, 2005) One would need to question where this money is coming from. Though fifty-dollar rate increase may seem manageable to property owners, this may be just enough to price people out of the rental market. These effects might suggest that owners may want to rethink their strategy. In one example, a 32-year-old apartment complex has raised rent 8%. Though there have been minor increases in upkeep and management, none would indicate a rent increase of seventy-five dollars per month. Due to this rate increase, management staff has seen a slower turn rate in available apartments. Now we should ask is the rent increase achieving any goal.
The most important aspect to consider is the effect the rental increases are having on society as a whole. The buoyancy of rental rates is a very big force determining the direction of care inflation. (Porter, 2006) Apartment dwellers used to look at renting as a temporary stop along the road to the American Dream. As homes become out of reach, now apartments are a more long-term endeavor. Because of this change, vacancy rates are on the decline. Looking