4 ms·
Make empty apartments untenable. Not by passing a law but just raising interest rates so that money locked in an illiquid asset is worse off than cash in a bank
by prasadjoglekar 4y ago
Make empty apartments untenable. Not by passing a law but just raising interest rates so that money locked in an illiquid asset is worse off than cash in a bank.
Prices are set on the margin, you need a few landlords to start to feel capital pressure to drop rents.
- gwright 4y ago> Not by passing a law but just raising interest rates Yeah, I can't imagine there would be any unintended consequences to that. In what world does raising the cost of providing housing cause landlords to reduce rents? More likely it causes landlords to stop renting. See the consequences of the rent control regulations in NYC, for example.
- testTED 4y agoDoesn't that drop investor and institutional demand for housing investment leading to more affordable prices for "actual" homeowners?