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What about effects on the overall market? If large landlords (like the company that bragged about owning 80,000 units) are colluding amongst themselves, then w
by neilv 3y ago
What about effects on the overall market?
If large landlords (like the company that bragged about owning 80,000 units) are colluding amongst themselves, then won't property owners not directly colluding also raise prices?
How do you provide relief to all those renters?
- flandish 3y ago> relief Nationalize (rental) housing or make it so no corporation can own housing. Co-ops where renters are actually owners for large scale buildings. More single family housing. Riots. I mean.. there are lots of ways
- matchbok 3y agoThose are all very bad ideas.
- lumost 3y agobarring rational regulation, we are likely to observe irrational actions in the future. Cost Disease is progressing to the point where prices are non-sensical. How does the median house appreciate more than the median income every year? Carry forward college prices 15 years and a 4 year degree will cost 800k. These are not sustainable numbers. Gen Alpha would be facing a 1.6 MM starting home cost and be saddled with hundreds of thousands in student loan debt.
- HDThoreaun 3y agoYes, we need to build more houses. Investing in real estate only makes sense when supply is constrained. When we allow people to build housing values tend more toward the cost to build as you cant speculate without constraining supply.
- cscurmudgeon 3y agoMotte-and-bailey fallacy here. We have one comment above asking for nationalization and you are defending regulation which everyone will accept.
- dragonwriter 3y agoThat’s not the motte-and-bailey fallacy, that’s simply two different points on a policy spectrum being argued by different parties.
- flandish 3y agoBad for whom? Shareholders? Fuck shareholders, people need homes they can afford. Ideas labeled as crazy or even violent have sprung up over history when people are pushed to breaking points. Capitalism’s formula for infinite expansion will eventually break people. How things like housing, healthcare, education, food are allowed to profit boggles my mind and is deplorable.
- whimsicalism 3y agoBad for making it so there are homes that people can afford. Capitalism yada yada - people need resources in order to get homes, people will only construct homes if they get resources in exchange. These are just facts of the world - it sucks that building costs, but it does.
- flandish 3y ago*profit Profit is stolen wage or stolen housing. When profit is allowed for things that make people safe, housed, healthy, fed, or educated, those profiting are, imho, committing crimes against humanity.
- cscurmudgeon 3y ago[flagged]
- matchbok 3y agoOk, this is a parody account. (Or someone with 0 knowledge of Econ 101) Time to move on.
- thiagoharry 3y agoIf there is demand for house construction, people will build houses as a service. No land ownership, or even no housing ownership does not change this fact.
- cscurmudgeon 3y ago> Capitalism’s formula for infinite expansion will eventually break people. Is it really capitalism when local governments and NIMBYies prevent housing? In truth, communism has broken housing in the US.
- nothingnab 3y ago[flagged]
- Aunche 3y ago> Nationalize (rental) housing or make it so no corporation can own housing Right now, only "luxury" housing developers are building new housing in high demand areas, so this is a recipe for curbing new development. > Co-ops where renters are actually owners for large scale buildings. Co-ops are cheaper monetarily, but you instead "pay" with you're inconvenience or conformity, which sometimes can include your skin color. Good luck proving that though. > More single family housing. That works, but there isn't any room to build any more in the most expensive housing markets > Riots Are also a great way to discourage new housing development and destroy the existing supply
- flandish 3y agoLooks then like the safest way is nationalization. All of it. * safest for the humans needing homes which is the only pov that should be considered.
- HDThoreaun 3y ago[flagged]
- cscurmudgeon 3y agoGreat. Now should we ban all unions because some of them are corrupt? Should we ban democracy because some politicians cheat?
- prpl 3y agoThere should be extremely stiff penalties for price collusion and per-market limits on the portfolio size of both owners and property management companies. I know in SF some of the bigger companies weren’t allowed to buy any more big buildings but they would facilitate sales for other building and perform property management, which obviously means they control the price for a broader population of apartments than they own.
- analyst74 3y agoIf a building's rent is higher than its surrounding ones, renters are less likely to live there. The same applies to cities, if, after adjusting for job/lifestyle/etc, people feel it's too expensive to live in a city, they move away, eventually reducing demand.
- Aunche 3y agoHow do you provide relief to all those renters? The article spells it out pretty clearly. > Prices are coming down in markets such as Atlanta and Austin, Texas, where home construction is high. But analysts believe low rates of homebuilding on the U.S. East Coast could give well-located landlords more pricing power.
- neilv 3y agoI saw that, but that didn't look like they're undoing the harm already done by the collusion.
- deleted 3y ago[deleted]
- ilaksh 3y agoPut some people in prison, like the CEO of Realpage and some of the larger property owners. Make it clear in the news what they did wrong and how it caused harm. Make sure the law is clear that this type of thing has criminal penalties. I am guessing none of that will happen. But not sure how you really correct it without criminal penalties.
- whythre 3y agoTo put them in prison they need to proven to have broken a law. What would that be? RICO violations? (Honestly asking).
- paulmd 3y ago> Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing https://www.ftc.gov/advice-guidance/competition-guidance/gui...
- whydid 3y agoDe-Incentivize the landlord market