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The bigger question is, why should I create new houses and apartments when I just can raise the rent? Right, no one would and no one will. Without the state i
by Bombthecat 10y ago
The bigger question is, why should I create new houses and apartments when I just can raise the rent?
Right, no one would and no one will.
Without the state intervening we will have a lot of new york cities around the globe.
- yummyfajitas 10y agoIf your theory was right, then developers shouldn't be desperately begging for permission to build while local NIMBYs beat them back at every turn. Your theory doesn't seem to match reality.
- quanticle 10y agoThe bigger question is, why should I create new houses and apartments when I can just raise the rent? It might actually be more profitable for you to have more units of housing at a lower price, than fewer units of housing at a higher price. Profit follows a quadratic formula, and it's quite possible to raise profits dramatically by selling more units at a (slightly) lower price.
- nawitus 10y agoAnother question is "why shouldn't I create new houses and apartments and create more profit"? This is true whether or not that person/company already owns apartments in that place. The market is global.
- aianus 10y agoBecause if housing prices are out of whack with development costs it can be more profitable to sell your current apartment (with its associated discounted cash flow) and use the capital to build a new one for cheaper.