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I am very interested to know how this works under the hood. I am assuming that landlords are "warehouse-ing" empty units, and then jacking up the price for the

I am very interested to know how this works under the hood. I am assuming that landlords are "warehouse-ing" empty units, and then jacking up the price for the remaining units so high that it makes up for the existing vacancy. Basically, this algorithm is turning participating landlords into an effective monopoly. Super grey area, but I think that should be illegal. That would explain why NYC remained persistently high even after pandemic.

projektfu 3y ago
I don't think it requires warehousing. Any underpriced (non-cartel) units are going to be held onto by the current renter because the available market is too expensive to move. But the renters being forced to the market by rent increases aren't finding cheaper places so they're paying higher rents. Presumably any new construction is going to be in the cartel.
klipt 3y ago
Yeah I think the idea is that without the algorithm, a landlord is more likely to game theoretically "defect" and advertise lower rent to fill a vacancy, but the algorithm discourages that in favor of cooperation/collusion.
LeafItAlone 3y ago
> "warehouse-ing" empty units Yes. I live in a building managed by one of the named defendants. I regularly check the available units page to see what is available (because I want to move into a bigger unit, but only specific ones). I've seen some units on the page for a long time, then get taken off, then put back on again a few weeks later. My building explicitly does not do any short term rentals, including corporate (I don't know about military, but none of them are furnished, so I doubt it). Some units in particular I have tracked to be available for over a year, with practically only price increases. They (and all other available units) do drop by 10s of dollars/month on a somewhat cyclical basis, which seems like it coincides with availability boundaries so that apartments don't all become rented and available all at the same time.

projektfu 3y ago

I don't think it requires warehousing. Any underpriced (non-cartel) units are going to be held onto by the current renter because the available market is too expensive to move. But the renters being forced to the market by rent increases aren't finding cheaper places so they're paying higher rents. Presumably any new construction is going to be in the cartel.

klipt 3y ago

Yeah I think the idea is that without the algorithm, a landlord is more likely to game theoretically "defect" and advertise lower rent to fill a vacancy, but the algorithm discourages that in favor of cooperation/collusion.

LeafItAlone 3y ago

> "warehouse-ing" empty units Yes. I live in a building managed by one of the named defendants. I regularly check the available units page to see what is available (because I want to move into a bigger unit, but only specific ones). I've seen some units on the page for a long time, then get taken off, then put back on again a few weeks later. My building explicitly does not do any short term rentals, including corporate (I don't know about military, but none of them are furnished, so I doubt it). Some units in particular I have tracked to be available for over a year, with practically only price increases. They (and all other available units) do drop by 10s of dollars/month on a somewhat cyclical basis, which seems like it coincides with availability boundaries so that apartments don't all become rented and available all at the same time.