Not of it.
Description: 21st Century Urbanism
In general terms, the equation* to figuring out what the market rate housing rents are is to find the average local wage, times it employment opportunities, divided by the number of housing units available (*this is not a real math equation, it is assembling the elements that determine how the market place sets rents). While this equation is too simple, the basic point is that the rents rise in economically hot housing market cities because our growing upper-class wages are booming while the number of units
Wages have somewhat stagnating for the shrinking middle class since the Great Recession. And those who are able to are willing pay more and compete for access to the ‘good life’ in a city that has great amenities, such as arts, parks, rivers (Austin and Denver), nice weather, beaches, bays (Miami and San Diego), and those cities with a lot of jobs and amenities (Bay Area, Seattle, and Los Angeles). This amenity factor still fits with the simple equation above as those cities offering jobs and amenities are
Cities have a spectrum of economic value, from high to low, in context. Every city has a limited number of housing units available in high economically valued and amenity-filled neighborhoods to be rented by those few high wage workers who are in high demand and making significantly higher wages (+$200k/year). While the majority of a city’s middle class workers (+$60k/year) live in middle to lower economically stable and amenity-less neighborhoods. These new higher wages jobs drive up the rent in those few
Not of it.