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Rental supply is fixed in the short term. Therefore landlords have no pricing power unless they are colluding assuming theyre trying to maximize profit and not
by HDThoreaun 3y ago
Rental supply is fixed in the short term. Therefore landlords have no pricing power unless they are colluding assuming theyre trying to maximize profit and not giving tenants a deal. Landlord goal is to rent every unit for maximum amount, that means renters set the price by competing with each other.
- chaorace 3y agoKind of the same deal as rent control in a lot of ways, right? What you get is a short-term suppression of market rates that slowly get internalized by the supply-side until prices more/less return to the original equilibrium