The landlord had told them he wanted to raise the rent to $3,500 and when they complained he decided to raise it to $9,500.
“We know that our building is not rent controlled and this was something we were always worried about happening and there is no way we can afford $9,500 per month," Yumna Farooq said.
Not really. Landlords need tenants. If tenants would rather own, then there would be nobody for the landlord to rent to. Landlords serve those who prefer to rent. Of note, one reason people prefer to rent is a belief that the housing market is about to crash. With a lot of signs suggesting that is a real possibility on the near horizon, this is why rents have skyrocketed recently. Nobody wants to be the bag holder, so many more are, right now, opting to rent over buying in order to wait and see what happens.
There is nothing that forces them to give loans to tenants. If landlords start leaving the housing market it is likely that credit offers will grind to a halt. The bank wants absolutely nothing to do with a security that people are running away from. Furthermore, the money leaving housing is apt to flow into productive businesses, which means that any credit that the banks are still willing to extend will go in that direction.
If you honestly believe this then you are delusional. I’m sorry there’s pretty much no kind way to put it. This statement is that egregiously erroneous that it is so incongruous with reality so as to be delusional.
Oh, right. People only pay for things they don’t want. How could I have forgotten?!