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They can just run a cartel [1]. I don’t understand why anyone thinks things like housing can have any competition when housing is not a commodity but a necessi
by PartiallyTyped 3y ago
They can just run a cartel [1].
I don’t understand why anyone thinks things like housing can have any competition when housing is not a commodity but a necessity and the margins are rather thin with little to no space for efficiency and innovation, and private equity can just buy apartments and houses.
> In one neighborhood in Seattle, ProPublica found, 70% of apartments were overseen by just 10 property managers, every single one of which used pricing software sold by RealPage.
[1] https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent https://www.propublica.org/article/yieldstar-rent-increase-r...
- steveBK123 3y agoProperty managers <> owners. RE investment is very hands on, and people hiring property managers to deal with it on their behalf. The idea that the top 10 own 70% of the market is not a shock. You could probably do this "top 10 own 70% of __ market" for literally anything.
- thfuran 3y agoI think you skipped the last clause of the sentence you're referencing (and forgot to look at the source). The real point is that one software vendor effectively controls all the pricing.
- PartiallyTyped 3y agoNotice that you omitted the important part: > every single one of which used pricing software sold by RealPage. Which makes this effectively a cartel.