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Established landlords have friends on the local council, and can determine who gets a building permit. Prices are set by the two or three biggest players, who a
by HarryHirsch 5y ago
Established landlords have friends on the local council, and can determine who gets a building permit. Prices are set by the two or three biggest players, who all know each other. That stuff happens all the time.
- refurb 5y agoSure, but someone still makes a decision “yes this rent is worth it” or “no I’ll go somewhere else”.
- HarryHirsch 5y agoWith a greater supply the clearing price will be lower. That's a trivial statement. The real problem is elsewhere - by constraining supply landowners are inhibiting economic development. Newcomers have a choice, if accommodation is too high they'll go elsewhere, so economic growth in productive industries will take place elsewhere. Man, not too long ago I shitcanned a new job 4 days in over the insane housing prices. A good number of my colleagues had a sideline in Airbnb, that asset inflation machine. There's far too much capital sunk in real estate, where it could not be more unproductive.