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Why would the rent increase? The rent is actually somewhat controlled in Denmark as well.
by kawsper 11y ago
Why would the rent increase?
The rent is actually somewhat controlled in Denmark as well.
- thaumasiotes 11y agoBecause people would have more money.
- eanzenberg 11y agoNot more money but more inflation. Since no intrinsic value is created, the value of the dollar would decrease as more dollars flood the area.
- Kalium 11y agoIf there is a greater demand for units than supply, price is set by the top N buyers. If you boost everyone's spending power above that price without increasing supply, market forces will tend to raise the price until it's affordable only to the top N again. In housing, this means that you can boost people's spending power to help them afford rent, but you also need to build more units or you're just going to fuck everything up.