2 ms·
If you mean that rents may find a new equilibrium at a lower price where the demand and supply curves cross that’s how markets usually clear. At least in textbo
by kgwgk 7y ago
If you mean that rents may find a new equilibrium at a lower price where the demand and supply curves cross that’s how markets usually clear. At least in textbooks. :-)
- wtvanhest 7y agoTbh, it’s exactly what I mean. The important distinction is that nothing has changed except willingness to pay so... rents have to go down to clear transactions. Overtime, some landlords will hold out, but by doing so, they may lose money vs what they would make if they sign lower deals. Bottom line, on the margin, rents will be lower.