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Because of opportunity cost. They've now invested their efforts and money into a house, and are now reaping the benefits of their investment. They could inves
by loco5niner 8y ago
Because of opportunity cost. They've now invested their efforts and money into a house, and are now reaping the benefits of their investment. They could invest it elsewhere, and charging a renter less money "because charity", doesn't make a lot of sense.
- perl4ever 8y agoYou're not looking at the other side of the coin. Why would a renter pay ten times as much "because charity"? Nobody who has to compete with others gets to set a price based on their costs.
- loco5niner 8y ago> Nobody who has to compete with others gets to set a price based on their costs. Sure they can. They can set whatever price they want. And on the other side of the coin, the available pool of renters can choose to pay that price or not pay that price.