4 ms·
I mean my preferred solution would be zoning reform first, yes. I was just proposing an amendment to OPs policy, I don't think it's politically viable in the US
by evilos 3y ago
I mean my preferred solution would be zoning reform first, yes. I was just proposing an amendment to OPs policy, I don't think it's politically viable in the US.
In my large US city, a lot of apartments are held by various corporations that collude via third party software to raise and keep prices high. The local building managers have no say in lease pricing. Maybe a small percentage of people are lucky enough to find mom/pop landlords but many are stuck paying whatever the large complexes charge.
- AnthonyMouse 3y agoSoftware can't defeat supply and demand unless you have a monopoly. Suppose the amount rents have to hit before it's profitable to build a new building is $1000/month and right now rents are at $990/month. A cartel representing 70% of the landlords in the city collude to raise rents to $2500/month. If they're allowed to, builders will keep building new housing until rents are back below $1000, because until that point they can keep making money by doing it. Even if they have to increase the housing stock in the city by the entire 70% and leave the cartel with a bunch of empty buildings. But if they're not allowed to build, prices go up. And some entity with a profit cap can't do anything about it because they have no path to supplying enough housing to lower the market price.
- evilos 3y agoThe supply here is highly constrained, hence my desire (in general) for zoning reform. Of course, there's a lot of opposition to building more housing from the usual suspects. Build more housing, that's the only way.