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I don't follow that. HQ2 was about creation of new jobs and immigration of more people into the area. For a fixed supply, higher rents are caused by a larger n
by bo1024 7y ago
I don't follow that. HQ2 was about creation of new jobs and immigration of more people into the area.
For a fixed supply, higher rents are caused by a larger number of people demanding housing at the current prices. Higher wages only affect that by (a) causing immigration into the area, or (b) raising people out of poverty so that they can afford housing when they couldn't before.
- ethanbond 7y agoHypothetical landlord: “All my tenants are now earning an additional $1k per month and nothing prevents me from raising prices. But I won’t raise rents because... reasons.”
- AnthonyMouse 7y agoEven where there are housing supply constraints, they still can't raise rents by the full $1000/month because that would give tenants $1000/month more incentive to move to a different city without housing supply constraints.
- bo1024 7y agoBecause the apartment next door would be $1000 cheaper and tenants would leave and go there.