4 ms·
>there is a natural vacancy rate, which is defined as the vacancy rate at which owners and renters have roughly equal bargaining power, leading to roughly infla
by eli_gottlieb 4y ago
>there is a natural vacancy rate, which is defined as the vacancy rate at which owners and renters have roughly equal bargaining power, leading to roughly inflation-pegged rent growth.
That's not natural. That's just holding landlord profits constant.
- darksaints 4y agoIt is natural, the profits being held are just an (eventual) consequence of it. It reflects a minimum of total rent (econ definition, not financial definition) for both parties, which is an ideal state that is sought for efficiency.