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Landlords maximizing what they can charge is normal behavior in an economy, and when concurrent with a free market, leads to a maximum amount of housing supply
by ETH_start 4y ago
Landlords maximizing what they can charge is normal behavior in an economy, and when concurrent with a free market, leads to a maximum amount of housing supply being created due to people chasing profits by building homes.
Perhaps counter-intuitively, the markets where normal profit-seeking behavior in the landlord business is prohibited, via rent control, see housing become comparatively extremely unaffordable and/or hard-to-acquire. See San Francisco:
https://www.econlib.org/library/Enc/RentControl.html https://www.econlib.org/library/Enc/RentControl.html