5 ms·

> If there are more units then there are renters, prices have to fall to meet demand. Not if it's so cheap to keep empty apartments around that you would rathe

> If there are more units then there are renters, prices have to fall to meet demand. Not if it's so cheap to keep empty apartments around that you would rather not make money now, in the hope that you will be able to make more money in the future. It's not exactly the same, but around here there is a huge oversupply of spaces for shops/restaurants. Owners prefer to keep them empty rather than have someone give them money. EDIT: Well, maybe it's not actually oversupply. There might actually be a lot of demand, but not at the excessive prices landlords demand.

gruez 6y ago
>Not if it's so cheap to keep empty apartments around that you would rather not make money now, in the hope that you will be able to make more money in the future. Ironically rent control laws that cause this. Accepting a lower rent now would mean locking in a lower monthly rate for the future, whereas if you left it empty you can hope that the rental market will recover and charge high rents in the future.
- brmgb 6y ago
  If only the state could heavily tax empty apartments and cap resell price to counter that. But wait, it actually can. Pushing renters and speculators out of the housing markets in favor of people who actually want to settle in the city is probably the best you can do as a municipality.
  - imtringued 6y ago
    I must absolutely thank you. I derive personal enjoyment from broken systems and the mass suffering that they produce. Everyone is happy. Isn't that nice?
    - brmgb 6y ago
      My personal enjoyment is watching people argue against measures which have demonstrably been effective in cities around the world (Vienna, Toronto) based on purely theoritical and ideological reasons while failing to address both their poor understanding a subject underpining their ideology and the fact that the current situation is actually broken.
- tom_mellior 6y ago
  Commercial spaces aren't rent controlled here, and many of them are empty. Many apartments are rent controlled, and I've never heard of them being empty for any appreciable amount of time.
  - gruez 6y ago
    >Commercial spaces aren't rent controlled here, and many of them are empty AFAIK that's not due to government regulations, but due to how banks handle valuations. Leaving a property empty doesn't affect the valuation, but accepting a lower rent does. This has effects on the landlords, such as making it harder for them to get new loans, or triggering covenants on existing loans.
- sudosysgen 6y ago
  You do what Vancouver does, and impose a 1% per month vacancy tax. That being said, I live in a rent controlled city, and occupancy rates are upwards of 90%, so that doesn't check out.
- mjevans 6y ago
  This is exactly the BS that happens with houses in foreclosure / bank owned. The solution should be to raise taxes on units that are not presently being used or actively being refurbished / litigated / etc.
arrrg 6y ago
There is still legal uncertainty. The German Constitutional Court hasn’t settled this matter yet. I would assume that that’s causing most uncertainty and people waiting. A temporary effect until legal certainty exists.

gruez 6y ago

>Not if it's so cheap to keep empty apartments around that you would rather not make money now, in the hope that you will be able to make more money in the future. Ironically rent control laws that cause this. Accepting a lower rent now would mean locking in a lower monthly rate for the future, whereas if you left it empty you can hope that the rental market will recover and charge high rents in the future.

brmgb 6y ago
If only the state could heavily tax empty apartments and cap resell price to counter that. But wait, it actually can. Pushing renters and speculators out of the housing markets in favor of people who actually want to settle in the city is probably the best you can do as a municipality.
- imtringued 6y ago
  I must absolutely thank you. I derive personal enjoyment from broken systems and the mass suffering that they produce. Everyone is happy. Isn't that nice?
  - brmgb 6y ago
    My personal enjoyment is watching people argue against measures which have demonstrably been effective in cities around the world (Vienna, Toronto) based on purely theoritical and ideological reasons while failing to address both their poor understanding a subject underpining their ideology and the fact that the current situation is actually broken.
tom_mellior 6y ago
Commercial spaces aren't rent controlled here, and many of them are empty. Many apartments are rent controlled, and I've never heard of them being empty for any appreciable amount of time.
- gruez 6y ago
  >Commercial spaces aren't rent controlled here, and many of them are empty AFAIK that's not due to government regulations, but due to how banks handle valuations. Leaving a property empty doesn't affect the valuation, but accepting a lower rent does. This has effects on the landlords, such as making it harder for them to get new loans, or triggering covenants on existing loans.
sudosysgen 6y ago
You do what Vancouver does, and impose a 1% per month vacancy tax. That being said, I live in a rent controlled city, and occupancy rates are upwards of 90%, so that doesn't check out.
mjevans 6y ago
This is exactly the BS that happens with houses in foreclosure / bank owned. The solution should be to raise taxes on units that are not presently being used or actively being refurbished / litigated / etc.

arrrg 6y ago

There is still legal uncertainty. The German Constitutional Court hasn’t settled this matter yet. I would assume that that’s causing most uncertainty and people waiting. A temporary effect until legal certainty exists.