4 ms·
If you're looking for a reason, collecting $4000 from 1 person is preferable to collecting $1000 from 4 people as there is more work/maintenance in dealing with
by Rury 4y ago
If you're looking for a reason, collecting $4000 from 1 person is preferable to collecting $1000 from 4 people as there is more work/maintenance in dealing with 4 people. This alone incentivizes landlords for wanting high rents, and a scarce supply, over a large supply and low rents.
In any case, this question applies to any market involving artificial scarcity. Surely you don't think businesses have never tried to make their product artificially scarce in order to make higher margins?
- kar5pt 4y agoI find it hard to believe that refusing to rent out 3 units would raise the fourth one from $1000 to $4000. I also don't think businesses normally refuse to sell large portions of already produced merchandise to maintain artificial scarcity. Maybe that happens in limited scenarios for short periods of time, but I don't think it's usually a cause of severe, chronic undersupply like what we're seeing in the NYC housing market. Of course, like I said to the other comment. I'm open to hearing contrary evidence (if it comes from actual economists and not journalists).