2 ms·

I don’t have any interest in it, it’s just not my understanding of the market. If I can help people avoid an inaccurate understanding of the world, I’ll try to

by ericd 4y ago

I don’t have any interest in it, it’s just not my understanding of the market. If I can help people avoid an inaccurate understanding of the world, I’ll try to help that, and if I’m the wrong one, then maybe I can learn and change my mind. I could certainly be wrong, it’s been a while since I worked on this stuff. When you say 80%, what are you using to find those/take that survey? I’d just keep in mind that a lot of sites only show listings from buildings that are willing to pay, and there’s a high correlation with professionally managed buildings. This is also why you should never trust stats sourced from those sites, they don’t have a representative view of the market (a lot of news stories cite them uncritically when talking about rent trends). Warehousing, care to cite something so I can read about it? Rent specials are an easy way to adjust rent downward, without adjusting rent downward. If they rent to someone at a lower rate, then it’s a long term rather temporary discount. What are you wondering about it?

yterdy 4y ago
>I don’t have any interest in it, it’s just not my understanding of the market. I'm just going to say that I don't think you're being completely honest, and leave it at that. >I’d just keep in mind that a lot of sites only show listings from buildings that are willing to pay, and there’s a high correlation with professionally managed buildings. We are talking about professionally-managed properties, so this isn't a problem. I don't think basement apartments, ADUs, etc. are representative of most people's experience with renting 1-3 bedroom apartments, particularly in my area, and I would be very surprised to find that they had a significant effect on the rate set for units in the large buildings and complexes where most renters live. >Warehousing, care to cite something so I can read about it? I will not. It has been written about extensively. It is suspicious that you would want to avoid an "inaccurate understanding", but have yet to look it up yourself. I would expect someone truly and dispassionately interested to have heard of it prior to this conversation, as it is evidently a significant issue wrt the nature of the contemporary rental market. A simple search will return many articles about it. >Rent specials are an easy way to adjust rent downward, without adjusting rent downward. If they rent to someone at a lower rate, then it’s a long term rather temporary discount. So, for example, a unit is rented for effectively $1300/m, discounted off a $1500/m base rent. The next year, there is no discount, and the unit renews at 5%-10% over the base, not discounted rent - potentially a $300 difference monthly. You don't think that this potentially distorts prices in the market?

by ericd 4y ago

yterdy 4y ago

>I don’t have any interest in it, it’s just not my understanding of the market. I'm just going to say that I don't think you're being completely honest, and leave it at that. >I’d just keep in mind that a lot of sites only show listings from buildings that are willing to pay, and there’s a high correlation with professionally managed buildings. We are talking about professionally-managed properties, so this isn't a problem. I don't think basement apartments, ADUs, etc. are representative of most people's experience with renting 1-3 bedroom apartments, particularly in my area, and I would be very surprised to find that they had a significant effect on the rate set for units in the large buildings and complexes where most renters live. >Warehousing, care to cite something so I can read about it? I will not. It has been written about extensively. It is suspicious that you would want to avoid an "inaccurate understanding", but have yet to look it up yourself. I would expect someone truly and dispassionately interested to have heard of it prior to this conversation, as it is evidently a significant issue wrt the nature of the contemporary rental market. A simple search will return many articles about it. >Rent specials are an easy way to adjust rent downward, without adjusting rent downward. If they rent to someone at a lower rate, then it’s a long term rather temporary discount. So, for example, a unit is rented for effectively $1300/m, discounted off a $1500/m base rent. The next year, there is no discount, and the unit renews at 5%-10% over the base, not discounted rent - potentially a $300 difference monthly. You don't think that this potentially distorts prices in the market?