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That is why I said "relatively inelastic". Raise the price too high and eventually you won't fill the unit because some other landlord will relent and stop rai
by slg 2y ago
That is why I said "relatively inelastic". Raise the price too high and eventually you won't fill the unit because some other landlord will relent and stop raising their price in order to get their unit rented. This is basically the foundation of market theory. Collusion stops people from relenting and makes the market more like a monopoly which gives that side power to manipulate the market price.
- dgfitz 2y agoWhat if, sincerely asking, the market can’t stay stable or lower rents because it has all been overleveraged?
- slg 2y agoSupply is relatively inelastic too. Landlords going bust and being foreclosed on doesn't destroy the units so renters will be fine. I'm not sure you're going to find much sympathy for "mega landlords" going bust.
- tpxl 2y agoThe market going belly up with prices falling off a cliff would be just about the best thing to happen to young families in the last decade, financially.
- refurb 2y ago> Raise the price too high and eventually you won't fill the unit because some other landlord will relent and stop raising their price in order to get their unit rented. Ahhh, ok, so why wouldn't this happen even with AI? Isn't the population of landlord's heterogenous? Some landlord's are happy to leave their units empty for a year, while others don't want to leave it empty between tenants? So in that case, even with collusion, you'd have some landlord's undercutting other landlords?