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Yep, especially with housing. You just build more homes quickly, right across the street from the overpriced ones, and rent them for cheaper.
by nottorp 3y ago
Yep, especially with housing. You just build more homes quickly, right across the street from the overpriced ones, and rent them for cheaper.
- tomn 3y ago"just" is doing a lot of work there. If the cartel model is profitable, then those taking part have the incentive and resources to buy up property in the areas that they operate in themselves. At least where I live, there are landlords who operate reasonably (reasonable rents, with safe and maintained properties, that respond quickly to issues), but there's so much demand relative to supply that it doesn't really affect the ones who are just trying to extract maximum profit.
- projektfu 3y agoMissing sarcasm tag on building homes quickly.
- nottorp 3y agoAlso on right across from the overpriced ones. Should have been obvious...
- Geisterde 3y agoThere is property for sale in probably every corner of the world, you dont need to build anything.
- blactuary 3y agoThis is laughable. Every major metro area in the US is in the midst of a crisis of lack of housing supply.
- Geisterde 3y agoAnd yet, property is for sale everywhere, go check zillow. You might not like the price, I imagine anybody looking to buy property to rent out probably has similar feelings; ultimately though, if they are using this "price fixing" algorithm, then it should be easy enough to out compete them by just lowering prices.
- blactuary 3y agoThat doesn't make any sense. There is a dramatic under-supply of housing, there will be no "out-competing". They're going to rent all of their apartments, the price-fixers and the non-price-fixers. They'd just be leaving money on the table, not "out-competing". They're not going to magically acquire a bunch of new non-existent housing to grow their market share. I implore you to move beyond econ 101 thinking.
- Geisterde 3y agoThen its not price fixing, thats the market price. If I produce 3 fidgets a week and they all sell by monday morning, Id raise the price.
- tomn 3y agoOops. I've seen worse free-market capitalist opinions held earnestly on HN, so it's hard to tell...
- nottorp 3y agoYeah, the one i replied to for example :)