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If vacancy is at 0%, you increase supply and vacancy is still at 0% you should absolutely not expect prices to fall. In fact, you should expect exactly what is
by fgonzag 3y ago
If vacancy is at 0%, you increase supply and vacancy is still at 0% you should absolutely not expect prices to fall. In fact, you should expect exactly what is happening, the market will reevaluate it's prices upwards until vacancy reaches some positive value. It's economics 101. This software just makes the process hyper efficient, where as normally it'd be far slower as landlords would not have perfect information.
The only way to fix this is to drastically incentivize building to the point that supply is higher than demand.
- epistasis 3y agoWhere is vacancy at 0%? This is pretty much impossible. Mostly agree with your comment though! Vacancy should be up close to 10%, IMHO, with anything below 5% considered a dire crisis that needs immediate fixing.