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> a landlord can often leave a place idle for months holding out for a higher offer, especially if AirBnB is an option I guess they can, but they are running a
by thunky 4y ago
> a landlord can often leave a place idle for months holding out for a higher offer, especially if AirBnB is an option
I guess they can, but they are running a business and their goal is to make money, so they'll eventually take what they can get.
And remember it works both ways. It doesn't seem like it now, but sometimes, in some markets, it's hard for landlords to attract tenants. I have serious doubts that regulation or any other form of intervention on pricing would have anything but unintended consequences, in some cases leading to the exact problem you're trying to prevent:
https://www.americanexperiment.org/new-york-landlords-are-keeping-apartments-off-the-market-due-to-rent-control/ https://www.americanexperiment.org/new-york-landlords-are-ke...
- acdha 4y ago> I guess they can, but they are running a business and their goal is to make money, so they'll eventually take what they can get. Oh, sure but the point is just that the market dynamics favor sellers pretty strongly. For example, how much does the hassle of moving or leaving a neighborhood deter the kind of negotiation which would normally be key to keeping a market stable? Note also that regulation doesn’t need to directly control pricing to make a difference. Since information asymmetry is a lot of the problem here, increased transparency could help improve the situation and give people better negotiating positions (e.g. if a building owner is profitable at 30% less than asking for all of the current leases, you can probably negotiate better with that information than if you don’t have it)