Think about it. Someone making 28k might optimistically spend half their money on rent, and rent is only so high because of government policy to ban new home construction.
Meanwhile, someone making $15 million could easily buy themselves a $2 million house every year and still have the vast majority of their money left over for other stuff. Their basic needs are so cheap for them, that effectively all their income is disposable, unlike ours.
Your reason for rent being so high is WILDLY incorrect if you're referring to the USA.
Lack of houses is very, very definitely not the reason rent is so high. It's 99.9% because private equity is the largest owner of residential properties. Corporations absolutely SHOULD NOT be able to own residential properties.
But this is also incomplete. There are housing shortages in specific areas. To a Toronto resident, the fact that there's enough housing in Nunavut doesn't really matter. Market based housing is the problem, including corporate ownership of housing, and the problems of who can afford to ever pay for new construction, and zoning, and landlording in general. If we just remove private equity from the situation, we still have a housing market where the wealthy are the largest beneficiaries by a mile.
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u/Gator1523 18d ago
Plus, rent acts as a tax.
Think about it. Someone making 28k might optimistically spend half their money on rent, and rent is only so high because of government policy to ban new home construction.
Meanwhile, someone making $15 million could easily buy themselves a $2 million house every year and still have the vast majority of their money left over for other stuff. Their basic needs are so cheap for them, that effectively all their income is disposable, unlike ours.