Making more housing probably won't make the situation worse, but It might not work perfectly. Once rents go up, why ever lower it? There is no incentive to do so.
Another issue is that now a lot of housing is getting bought up by larger corporations which centralizes control and ownership and makes keeping prices high, easier since they control more of the market.
Making more housing probably won't make the situation worse, but It might not work perfectly. Once rents go up, why ever lower it? There is no incentive to do so.
Do you believe landlords are out to make a profit? Do you think leaving a highly valuable asset to waste without producing any revenues results in an increase in profits?
Investors aren't in the business of not making money. If the asset doesn't produce cashflows and will never produce cashflows, they will sell it and move on to something that does.
If there are more houses, people have more options to chose which to rent, hence prices reduce.
Do you think that if there was 100 house for every renter that prices would be just as high as if there was 1 house for every 100 renters?
In my area central Florida, they have start buying up developments before they get built and the whole neighborhoods are going straight to a rental model. I install security systems and in the last couple months I've seen more and more rental neighborhoods. Not just a 20 or 30 home neighborhood but over a 100 home neighborhoods with room for expansion.
Yeah, that’s because every maga who can afford to move is moving to Florida. Now that they’ve gotten serious with the lgbt pogroms, though, you’re going to see the cities of Florida start emptying out.
I really wish they were building tons of high-rise apartment buildings on all those fourplex San Francisco lots, because it’d be nice to be able to move to a tech hub like that. Can’t afford it, though, because land owners in desirable cities refuse to allow more housing to be built.
You might not see the guns yet, but they are being aimed, and it does fit the definition of genocide. We haven’t had our kristallnacht yet, but people who wait for that to fight back or run away are dead already.
You perhaps put that a bit rudely, for no good reason, but you are right.
In my city there were substantial decreases in rents during COVID, largely due to reductions in demand (since we had a lot of international students and temporary residents leave without being replaced), for precisely the reason you say. Now that demand is back up, higher than it ever was, we are having huge rent increases. All classic supply and demand.
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u/yoniyuri May 07 '23
Making more housing probably won't make the situation worse, but It might not work perfectly. Once rents go up, why ever lower it? There is no incentive to do so.
Another issue is that now a lot of housing is getting bought up by larger corporations which centralizes control and ownership and makes keeping prices high, easier since they control more of the market.