Considering it's a model, I wouldn't read too much into it since there are a ton of factors that influence it. But the point stands. It's like renting out a s

Considering it's a model, I wouldn't read too much into it since there are a ton of factors that influence it. But the point stands. It's like renting out a single apartment. If tenants stay for years on average, holding out for an extra $500 per month is worth 3 months of vacancy since for places where rents are ~$3,000, you'll make back the loss in only 18 years. Then it's an extra $6,000 per year thereafter. Reminds me of my landlord in SF. She was going to retire and sell the building. Empty units fetch almost $200,000 more when sold. So as tenants moved out, she left them empty. The rent was about $4,000 per month, so as long as all the tenants moved out within 4 years, she was still ahead by leaving it empty. I was the last tenant to leave after about 2 years. She made an extra ~$400,000 by leaving units empty.