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It’s unreasonable because increased supply reduces price almost always. That it may increase price by increasing the value of the local economy is an edge case

• fatfingerd 4y ago
  It's not necessarily increasing supply though. When my neighborhood got new fancy apartments, surrounding apartments were converted to please the same price insensitive tenants that apparently wanted to afford 4k+ living alone. There are far less total tenants now. Rooms are twice as big, in some cases apartments are twice as big, halving the number of units. These people probably would have stayed outside of the downtown if large units weren't created.
• bsder 4y ago
  > It’s unreasonable because increased supply reduces price almost always. Except that it doesn't because of the nature of the financing agreements on these kinds of apartment complexes. "Missing rent" can be tacked onto the end of the financial agreement. "Lower rent" requires you to recapitalize your financing--which is absolutely NEVER going to happen with the interest rates having gone up. Therefore, apartments will sit empty for years rather than allow rent to go down. That benefits nobody. Lots of various places would need to implement a "lack of occupancy tax" in order to force the rents to come down.