Yes, building new properties will help the situation. It is basic economics.
If there are more apartments, the demand vs. the supply falls and prices start
coming down. Overbuild and apartment owners will be giving things away just to
get renters. Granted, one or two buildings will not do much in a
large city. However, if several new A properties go up, some of the tenants
from the former A properties will move to the new A, the new A- properties will
have less room to charge whatever they want. The former A- properties will also
have to keep costs low or their tenants will move to the new A-. It trickles
down to the C properties. Eventually, prices will start falling.Just look at office buildings in Salt Lake. In 2004-2007 landlords could
dictate the terms even though there were several new buildings. When demand
fell so did prices. Now that the vacancy rate is going down, prices are headed
Rent isn't cheaper in the short term. If you buy you get to deduct
interest and property taxes for income tax purposes. If you rent, part of the
rent goes to pay the Landlord's property taxes and finance costs.
I guess you have to look at it a number of ways. Is your home an investment as
well as a residence? Do you need flexibility instead of commitment? What type of
life are you choosing? Marriage and family are a entirely your choice, and will
in a large way determine your accommodation situation. The choices are available
to everyone. If increasing rent costs push people into different situations or
different locations, so be it.
As long as you do not own your dwelling, you are at the mercy of your landlord.
Rent is cheaper over the short term, but always loses out over the long term in
any market where demand is rising.