3 ms·
This confuses correlation and causation. Increased demand causes new units with a price premium to be built and causes older units to rise in price. You see the
by ch4s3 5y ago
This confuses correlation and causation. Increased demand causes new units with a price premium to be built and causes older units to rise in price. You see them concurrently because of the lease cycle, and sometimes secondarily because of weird municipal rent laws.
- colechristensen 5y agoWhen you have a conversation with a landlord about why they raised rent, it’s not confusing corrolation for causation.
- ch4s3 5y agoJust because they use new construction as a price signal doesn’t mean the underlying causality changes. Small landlords don’t necessarily read market reports or The RealDeal.