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Landlords can't pass costs to tenants. The rental market is completely supply inelastic. Landlords are already charging the maximum renters are willing to pay.
by colinmhayes 5y ago
Landlords can't pass costs to tenants. The rental market is completely supply inelastic. Landlords are already charging the maximum renters are willing to pay.
- majormajor 5y agoDo you mean at this moment in time because of Covid, or in general? Because in general, there have been easy-to-find examples in the past couple decades of rents going up 5-10% every year for folks in certain places with aggressive landlords. Were they willing to pay 5-10% more suddenly in year n+1, or were they charged less than the maximum they would've been willing to pay in year n?
- colinmhayes 5y agoDemand has been increasing by 5-10% a year in highly desirable areas. Obviously different people are willing to pay different amounts, but everyone wants to pay as little as possible. As more people want to move in the least wealthy are pushed out and prices increase. After all, rental price is the highest price landlords can take in order to rent out all their units.
- kangaroozach 5y agoLandlords derive their revenue from rent. That’s it. And they aren’t in the business of losing money. So one way or another it comes out of the renters pocket. Its like when a broker sells a house and says the seller pays the fee. In reality the buyer is the only source of money in the deal so they are effectively paying the fee.