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I think you misunderstand elementary economics here. The rental market is not a monopoly or oligopoly. Landlords can not exercise market power. It is a competit

I think you misunderstand elementary economics here. The rental market is not a monopoly or oligopoly. Landlords can not exercise market power. It is a competitive market given the number of independent landlords and given their inability to coordinate in order to effect collusion. > the landlord class continuing to jack up rents every time they got more access to cheap money That's not true. As a case study, in Australia during the negative net migration during Covid, rents actually decreased. Rents only increased when net migration levels surged post-2022 to 2.5x the level of annual housing starts. Credit in Australia is actually more expensive now than back when rents were low in the 2010s. https://tradingeconomics.com/australia/rent-inflation https://tradingeconomics.com/australia/rent-inflation Also, cheap credit does have one deflationary impact on rents, which is that it leads to more housing starts which addresses the shortage issue. If credit was expensive you'd have less housing, exacerbating the main cause of rent increases.

arrosenberg 2y ago
Thank you econ 101 student, but I understand it fine. > It is a competitive market given the number of independent landlords and given their inability to coordinate in order to effect collusion. Oops, they did collude. https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing https://www.ftc.gov/business-guidance/blog/2024/03/price-fix... > rents actually decreased. This link says rent inflation decreased, which just means inflation was lower. This is also just a graph and some numbers, so I'm not really sure why you linked it. It doesn't explain anything by itself. > which is that it leads to more housing starts which addresses the shortage issue We had 15 years of the cheapest money in the history of modern economics, why do we still have a shortage?
- hackerlight 2y ago
  Negative rent inflation in 2020 means rents decreased in 2020. I explained already why it's relevant. Rents went down when credit was the cheapest (refuting your hypothesis) and when net migration was the lowest (confirming my hypothesis that it's shortage related). Then rents skyrocketed post-2022 when credit was expensive (refuting your hypothesis, again) and when net migration was at an all time high relative to housing starts (confirming my hypothesis, again). You have no data that backs your hypothesis and you remain obstinate in the face of data that refutes it. "We had 15 years of the cheapest money in the history of modern economics, why do we still have a shortage?" Zoning regulations that prevent housing near cities. We also didn't have as bad of a shortage 4 years ago, the rental crisis got a lot worse post-2022 everywhere in the West as the net migration backlog from covid was processed and housing starts failed to keep up.

arrosenberg 2y ago

Thank you econ 101 student, but I understand it fine. > It is a competitive market given the number of independent landlords and given their inability to coordinate in order to effect collusion. Oops, they did collude. https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing https://www.ftc.gov/business-guidance/blog/2024/03/price-fix... > rents actually decreased. This link says rent inflation decreased, which just means inflation was lower. This is also just a graph and some numbers, so I'm not really sure why you linked it. It doesn't explain anything by itself. > which is that it leads to more housing starts which addresses the shortage issue We had 15 years of the cheapest money in the history of modern economics, why do we still have a shortage?

hackerlight 2y ago
Negative rent inflation in 2020 means rents decreased in 2020. I explained already why it's relevant. Rents went down when credit was the cheapest (refuting your hypothesis) and when net migration was the lowest (confirming my hypothesis that it's shortage related). Then rents skyrocketed post-2022 when credit was expensive (refuting your hypothesis, again) and when net migration was at an all time high relative to housing starts (confirming my hypothesis, again). You have no data that backs your hypothesis and you remain obstinate in the face of data that refutes it. "We had 15 years of the cheapest money in the history of modern economics, why do we still have a shortage?" Zoning regulations that prevent housing near cities. We also didn't have as bad of a shortage 4 years ago, the rental crisis got a lot worse post-2022 everywhere in the West as the net migration backlog from covid was processed and housing starts failed to keep up.