5 ms·
> they're still competing with each other and won't be able to raise the prices too much. That only works if (a) there are multiple companies rather than one d
by stephenr 2y ago
> they're still competing with each other and won't be able to raise the prices too much.
That only works if (a) there are multiple companies rather than one doing this and (b) they are operating independently and (c) there is a surplus of housing available;
Take away any of those scenarios and there is not real competition, and thus they charge what they want.
- kelnos 2y ago> there is a surplus of housing available That's the entire point. You need to satisfy demand. If you have more demand than supply, you are always going to have housing unaffordability. > Take away any of those scenarios... Not really. Even if there's only one company that owns a lot of the housing stock, they can't just set prices wherever they want. People still have the choice not to live there, if the pricing isn't to their liking. And if there's equilibrium, or a surplus of housing, landlords have to meet renters on price. (Certainly the ideal is that you have many many landlords, rather than just one, of course.)