3 ms·
Presumably rents will first fall for places that are hardest to find tenants for. That's probably the most expensive or the worst places that have a smaller poo
by onion2k 4y ago
Presumably rents will first fall for places that are hardest to find tenants for. That's probably the most expensive or the worst places that have a smaller pool of customers. Half-decent places where the rent isn't totally crazy will fall later if they come down at all.
Reducing prices is a selling tool. There's no need to use it if you're already getting customers.
- SQueeeeeL 4y agoIt's dubious to guarantee that they'll fall, but it's understandable why people who don't rent would think that because from an economic theory perspective, the reality doesn't really make sense. Most landlords will simply never charge less than the maximum they've charged for a building, no matter what. That's why you see inner city areas of most major US metropolitan areas have a ton of shuddered store fronts. I think the main reason this happens is because these landlord groups aren't really trying to maximize revenue, but are trying to validate that their "investment" was a good idea. Because it's a psychological/systemic hangup and not an economic one, we see urban areas become endlessly more expensive and simultaneously less occupied