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It’s really hard to claim price fixing when occupancy rates have been 98% or higher for decades, as is the case of nearly all coastal cities in the US. And I ha

It’s really hard to claim price fixing when occupancy rates have been 98% or higher for decades, as is the case of nearly all coastal cities in the US. And I have first hand experience with them dropping prices when demand drops (I literally had my renewal rent drop when there was a short downturn). They’re just a dynamic pricing algorithm, they have no power over supply and demand. And it’s kinda annoying to see this idea trotted out when we obviously have a supply problem.

skulk 3y ago
It's annoying to you to hear that the majority of rental units are effectively controlled by a soulless organization? From the article I linked: > One of the algorithm’s developers told ProPublica that leasing agents had “too much empathy” compared to computer generated pricing. The article also has multiple anecdotes that run counter to your own. Just because you saw rents drop in response to demand decline doesn't mean this is what happens in practice most of the time. > For tenants, the system upends the practice of negotiating with apartment building staff. RealPage discourages bargaining with renters and has even recommended that landlords in some cases accept a lower occupancy rate in order to raise rents and make more money. > Hutchinson, who is an analyst for the police department, wondered if a computer algorithm was behind building staff’s inflexibility. “It was pretty obvious they should have been dropping prices,” she said. “They were digging their heels in.” Please remember: this isn't some economics game like the price of cars or eggs. Housing is something you need TO LIVE and for which there is NO SUBSTITUTE. Increasing supply will only go so far, as long as your society allows it to be controlled by entities that see is it as a profit maximization game, you will see horrific outcomes.
- darksaints 3y ago
  Prices were rising dramatically for 50 years before this company even existed. Because supply was restricted. Airlines have been using dynamic pricing for 50 years, and prices are lower now than they were 50 years ago. Because supply was not restricted. That is all that matters. Get vacancy rates above 10% and maybe then we’ll talk about dynamic pricing boogiemen.

skulk 3y ago

It's annoying to you to hear that the majority of rental units are effectively controlled by a soulless organization? From the article I linked: > One of the algorithm’s developers told ProPublica that leasing agents had “too much empathy” compared to computer generated pricing. The article also has multiple anecdotes that run counter to your own. Just because you saw rents drop in response to demand decline doesn't mean this is what happens in practice most of the time. > For tenants, the system upends the practice of negotiating with apartment building staff. RealPage discourages bargaining with renters and has even recommended that landlords in some cases accept a lower occupancy rate in order to raise rents and make more money. > Hutchinson, who is an analyst for the police department, wondered if a computer algorithm was behind building staff’s inflexibility. “It was pretty obvious they should have been dropping prices,” she said. “They were digging their heels in.” Please remember: this isn't some economics game like the price of cars or eggs. Housing is something you need TO LIVE and for which there is NO SUBSTITUTE. Increasing supply will only go so far, as long as your society allows it to be controlled by entities that see is it as a profit maximization game, you will see horrific outcomes.

darksaints 3y ago
Prices were rising dramatically for 50 years before this company even existed. Because supply was restricted. Airlines have been using dynamic pricing for 50 years, and prices are lower now than they were 50 years ago. Because supply was not restricted. That is all that matters. Get vacancy rates above 10% and maybe then we’ll talk about dynamic pricing boogiemen.