(Replying to PARENT post)

Median rents went up by 30% between 2007 and 2017: https://images.app.goo.gl/m9SwrkpQYhuNBMeaA. That’s 2.6% per year, somewhat higher than the 2% inflation target, but not much.

Housing is hard to gauge because the same house moves up market as areas develop. When I was a kid, Reston (where Google has a big office), was a solidly middle, even lower middle class suburb with old housing stock. Now it’s got a Metro station, tons of new shopping, tons of tech jobs. Reston is, now, what Clarendon was when was a kid. Rents have gone way up in Reston, but that’s not inflation. It’s paying more for a more in-demand, premium product.

(The same thing happens with cars by the way. The Toyota Corolla was once Toyota’s low-end model. Now, it’s a mainstream sedan, with whole nameplate, Scion, filling the market segment previously targeted by the Corolla.)

👤rayiner🕑6y🔼0🗨️0

(Replying to PARENT post)

I lived in Reston for a few years. For being a quiet far-away bedroom community, it was funny to see how rents exploded, especially once the metro arrived. Apartments in the awful town center area were asking Dupont Circle prices with the 2 hour x 2 commute and $20/day parking and $10/day tolls it would cost to actually work in Dupont.

DC is becoming an awful place unless you absolutely know where you'll be working for the next 20 years and can buy a home close to the office. Otherwise, you're not going to enjoy the 2.5 hour commute and $12 in tolls when client site location moves from Tysons to Silver Spring, MD. It's so crowded, though, because a lot of government workers and contractors who'd be making $50K in Anywhere, America can earn 6 figures after a bit of seniority in the gov.

I'm planning on bailing for good. I could now only barely afford one of those tiny condos with a $500/month HOA nowhere near a metro in NOVA, but I'd never get to enjoy it as I'd be spending the majority of my day sitting in traffic. And wages in DC for techies aren't really that good compared to SV or NYC, since it's mostly set by government. Maybe Amazon will force the contractors to pay more.

👤hiram112🕑6y🔼0🗨️0

(Replying to PARENT post)

Rent isn't paid with debt, so is very different. You don't get to make magic money out of nothing to pay rent. But with the way the Fed is running things, almost anyone can create magic money out of nothing and buy a house. The money the bank lends you did not exist(save for the reserve requirement) before the loan was created.

Also, inflation requires increasing demand for it to occur. The existence of increasing demand does not mean it's not inflation. That's why goods/services with no increasing demand do not inflate in an inflationary economy. Inflation has always been an uneven phenomenon.

👤wavepruner🕑6y🔼0🗨️0

(Replying to PARENT post)

side note: Toyota shut down Scion in 2016
👤seekup🕑6y🔼0🗨️0