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They'll lower rents in order to maximize profit. Number of units goes up, demand stays constant, the price will need to come down or they're stuck with empty u
by simplicio 4y ago
They'll lower rents in order to maximize profit. Number of units goes up, demand stays constant, the price will need to come down or they're stuck with empty units that generate negative profit.
- falcolas 4y agoDemand is not remaining constant. And it currently outstrips supply.
- s1artibartfast 4y agoDemand would still be lower than if JP didn't build the houses. That may be higher than today, but it is lower than an alternate future where we ban building houses.
- welshwelsh 4y agoWhen demand is greater than supply, then the limited supply goes to the highest bidder. Nothing wrong with that. JP Morgan is building more housing though, which is always a good thing because it increases supply. Governments need to ensure that building more housing remains an accessible and profitable venture.