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If all rents rise jointly that primarily indicates that housing is not competing on price, so remedying that anti-competitive environment is a separate and more
by TTPrograms 10y ago
If all rents rise jointly that primarily indicates that housing is not competing on price, so remedying that anti-competitive environment is a separate and more important issue IMO.
- branchless 10y agoI don't understand the thinking here. Rents are set by what the market can bear. Make more money available and the price will increase.
- maxerickson 10y agorayiner mentions mobility in a cousin comment. In a healthy housing market, rents should roughly match the price of new construction (plus some profit) rather than being set just by the existing supply.
- 1123581321 10y agoRents in cheaper markets need to be less than the difference in cost of living plus the cost of moving (amortized somehow.) Sadly, improved transportation infrastructure and technology seems only to concentrate people even more in dense, expensive cities. These cities have a lot of opportunity and connections that keep people there, often rationally, but people who struggle stay as well.
- branchless 10y agoRents have nothing to do with the price of construction. Prices are set by available credit for purchase and by wages less other essentials for rent. I'm afraid this isn't simply supply and demand fudge factor after construction costs at all. ------------- Reply to child post as HN hates rentier slayers and throttles. They function in that prices are set. But they are set by credit. And supply is inelastic. Banks use land to gain unearned income through their monopoly on money creation as debt.
- maxerickson 10y agoYes, I agree that housing markets suck.
- tonyedgecombe 10y agoIf demand outstrips supply.