3 ms·

They only lower rent if they meet demand. If demand far outstrips supply, rent will continue to rise, just slower with new development.

• xvedejas 9y ago
  Slower rises are still better than faster rises
• BurningFrog 9y ago
  They always lower rents, compared to if they hadn't been built.
  • drb91 9y ago
    Not if they increase demand, as gentrification does!
    • BurningFrog 9y ago
      I know people think that happens, but economists haven't been able to see it. What does happen is that both housing construction and gentrification increase when the economy is going well. It's easy to think that one is causing the other when in reality they're both caused by an underlying factor.