3 ms·
Heavily regulated (construction) market => high cost of building new (housing) units => low supply => high sale prices + heavily regulated (rental) market => h
by nickpp 9y ago
Heavily regulated (construction) market => high cost of building new (housing) units => low supply => high sale prices + heavily regulated (rental) market => high rents
Simple economics, no?
- ThrustVectoring 9y agoSale prices aren't coupled to rents like you think. Landlords charge what the market will bear - how high housing prices increase rents is through making purchasing housing impossible for more people, who are then force to bid up rents.