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> A landlord can only get the amount of rent that a tenant is willing to pay. A place to live is a rather inelastic commodity. If the price goes up across the

> A landlord can only get the amount of rent that a tenant is willing to pay. A place to live is a rather inelastic commodity. If the price goes up across the board, people will pay, until they can't possibly afford the going rent and are driven into homelessness. > this service is not responsible for higher rents, the market is. This service has effectively cornered the market, and is manipulating the market through shortages, driving rents higher.

WalterBright 4y ago
> A place to live is a rather inelastic commodity. People always say this when prices are going up. Then prices go down, like in 2008. The thing is, it is elastic. For example, people get roommates to split the rent. They get larger or smaller places based on their willingness to pay. More convenient or less convenient. More or less amenities.
- acdha 4y ago
  Here’s what that looks like on the history: 2008 caused a brief flattening but it’s clear why people are talking about rent going up because that’s what it has overwhelmingly done. https://fred.stlouisfed.org/series/CUSR0000SEHA https://fred.stlouisfed.org/series/CUSR0000SEHA
  - WalterBright 4y ago
    Rents also went down in San Francisco during the pandemic. Something that the people on HN wrote could never happen :-)
    - acdha 4y ago
      Oh, no argument - but for how long relative to the time they have been going up? I wouldn’t say they never go down but there’s been a pronounced trend for ages. I bought a house relatively early (thanks dotcom bubble!) and was constantly reminded of how much extra income I had relative to my friends who were renting, and that really adds up over the decades where people in decent jobs were struggling to amass down payments.
      - WalterBright 4y ago
        Housing tends to go up over time due to inflation, government regulation, and increasing population competing for the same housing stock. Housing in many rural areas has stagnated, because people don't want to live there.
    - refurb 4y ago
      Yup. Everyone claimed it wasn’t supply and demand, but as soon as Covid and WFH hit (and people could live anywhere), rents dropped fast in SF, probably ~20% in 6 months. Amazing!

WalterBright 4y ago

> A place to live is a rather inelastic commodity. People always say this when prices are going up. Then prices go down, like in 2008. The thing is, it is elastic. For example, people get roommates to split the rent. They get larger or smaller places based on their willingness to pay. More convenient or less convenient. More or less amenities.

acdha 4y ago
Here’s what that looks like on the history: 2008 caused a brief flattening but it’s clear why people are talking about rent going up because that’s what it has overwhelmingly done. https://fred.stlouisfed.org/series/CUSR0000SEHA https://fred.stlouisfed.org/series/CUSR0000SEHA
- WalterBright 4y ago
  Rents also went down in San Francisco during the pandemic. Something that the people on HN wrote could never happen :-)
  - acdha 4y ago
    Oh, no argument - but for how long relative to the time they have been going up? I wouldn’t say they never go down but there’s been a pronounced trend for ages. I bought a house relatively early (thanks dotcom bubble!) and was constantly reminded of how much extra income I had relative to my friends who were renting, and that really adds up over the decades where people in decent jobs were struggling to amass down payments.
    - WalterBright 4y ago
      Housing tends to go up over time due to inflation, government regulation, and increasing population competing for the same housing stock. Housing in many rural areas has stagnated, because people don't want to live there.
  - refurb 4y ago
    Yup. Everyone claimed it wasn’t supply and demand, but as soon as Covid and WFH hit (and people could live anywhere), rents dropped fast in SF, probably ~20% in 6 months. Amazing!