News
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
view the rest of the comments
That's true in general. And if you assume a perfectly efficient market, yes, renting would never be cheaper than buying. On the other hand, if markets were perfectly efficient, no company would ever be able to make a profit at all.
One market distortion is that in certain times, people will actually pay a premium for renting. People aren't perfectly rational actors. Or moreover, they prioritize things beyond just simple cost. Even if buying is more expensive that renting, all costs considered, often people will pay more just for the stability and certainty that comes with home ownership.
The housing market is also distorted by all the present owners with locked-in 30-year mortgages. This has suppressed the supply of existing homes on the market. Rental companies don't get access to federally-subsidized 30 year mortgages, so they are less subject to this interest rate lock-in.
I pointed out a few things, but these are a few of many. The key thing to realize is that housing is highly illiquid, and its production, ownership, and sale is heavily regulated, taxed, and subsidized. It's a heavily regulated market. This means that the market will not always follow basic econ 101 behavior. Yes, in theory, rentals will include all costs. But that is rarely the case.
In fact, in a perfectly efficient market, it's likely that neither buying nor renting would be beneficial. If everyone acted perfectly rationally all the time, the cost of renting would exactly equal the cost of buying. And in that world, buying would never be worth it, simply because it wouldn't be worth the extra hassle to safe not a single penny.
The cost of renting or buying would be negligible if we prioritized human needs over the human want to hoard wealth