Who typically earns more in today’s America: a landlord in a poor neighbourhood or one in a rich neighbourhood?
You might assume the posh landlord, whose tenants bring more money and less risk. But according to Princeton sociologist Matthew Desmond, you would be wrong.
Landlords in poorer areas earn “basically double” those in more affluent districts — an extra $50 per apartment per month, after expenses. The outperformance, calculated from national surveys, held even when researchers factored in faster price rises in richer areas.
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