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Supply and demand don't exactly work on an inelastic market like rent. You can't wait until find an acceptable price, you need a roof today. You can't accumulat
by worewood 2y ago
Supply and demand don't exactly work on an inelastic market like rent. You can't wait until find an acceptable price, you need a roof today.
You can't accumulate, so you only look for rent when you don't have one and NEED one.
Landlords, on the other hand, can accumulate, and leave properties empty, sometimes for years, until someone desperate enough arrives.
Rent is not grain where they must sell it by a deadline or it goes bad.
It's a market disproportionately skewed in favor of the landlords.
- indymike 2y ago> Supply and demand don't exactly work on an inelastic market like rent. I used to set my properties rent to be competitive with the other rentals in the area. In would vary a lot - sometimes more sometimes less. At this point there are so many companies setting price with subscription services that prices always go up. > Landlords, on the other hand, can accumulate, and leave properties empty, In a healthy market this strategy will leave small landlords bankrupt. The problem right now is that the small landlords can play along with big property management companies on price collusion.