I was walking around the neighbourhood the other day when a historic plaque caught my eye:

...the workingmen's cottages on Warren Place were among the first planned low-income housing in the nation when they were built in the late 1870's.  At that time, rent for a four-room apartment was $1.93 per week.

Wow! $1.93 a week rent sounds great.  But what is that after inflation?  According to the inflation calculator, that's about $37.41 in 2008 (assuming 1875 as a base year).  Given that a 1Br goes for about $500 a week around here (and has roughly 4 rooms), if you were a very old person with rent control, you'd be laughing.

Also, if you were a landlord, the difference between $500 and $37 ain't much of a return.  That's a compound return of only 1.90% over the 130-odd years, meaning you're doing much better than inflation, but not a whole heckuva lot.  You still would have done better in the stock market.


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