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Source link: http://archive.mises.org/8974/more-good-news-rents-fall/

More Good News: Rents Fall

November 18, 2008 by

As speculative errors of the boom are corrected in the bust, rents are falling in the UK, despite vast money creation. Look for the same to happen in the US.

{ 2 comments }

Frank November 18, 2008 at 10:22 am

I wish this were true for Portland, Oregon. It seems to be the opposite as our rent increased 10% last year. We showed up to look at another place and there were at least 50 other people looking, too. Tight market here.

gooddebate November 18, 2008 at 10:51 am

Well, you can thank the urban growth boundary for that. The entire real estate market in Portland is distorted.

For those who don’t know, the UGB is unique to Portland. It’s essentially a board that was created to ‘prevent an LA’ of urban sprawl. So, they created a boundary inside of which there are normal rules for development of property but outside rules are designed to essentially stop development. Things like not being allowed to sell a 5 acre lot in more than three pieces and one piece has to be no less than half the total, blah blah blah.

Every little piece of land inside the boundary now has 6 houses on it, all tightly packed. It’s ugly. The irony is they’ve prevented an LA but created a San Francisco.

I got out and sold my house shortly after they announced they weren’t going to expand the boundary. Prices shot up, duh. Thanks though.

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