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If landlords are able to raise rent beyond what you think is "fair" then that is almost certainly because there is some arbitrary restriction on housebuilding/r

If landlords are able to raise rent beyond what you think is "fair" then that is almost certainly because there is some arbitrary restriction on housebuilding/rentals. Otherwise an entrepreneurial individual would just do that, undercut and take the profit anyway. Where I live this is happening at the moment (London, UK). Permission to build is hilariously difficult to get and often involves expensive concessions, at the same time rentals are increasingly regulated which makes it riskier/more expensive.

andrepd 2y ago
How is this "entrepreneur" going to build in central London I wonder
- nradov 2y ago
  If getting building permission was easier then real estate developers would buy up low-rise buildings and replace them with residential skyscrapers. Whether this would be good for London is a matter of perspective.
- naming_the_user 2y ago
  Loads of space in Zone 2 and beyond. Near to me are huge retail parks with parking that are basically relics of the 80s. The land would be worth far more as housing. You can't easily build housing on them because you won't get permission and if you did you'd be forced to build "affordable housing" e.g. give up a ton of the profits. So no-one does it.
fzeroracer 2y ago
Usually the problem isn't just arbitrary restrictions or prevention of house building in the US, it's an issue of both amount of available land and how insanely large real estate managers/developers are. For example, if you wanted to avoid renting from a Greystar-owned property it is almost impossible considering the amount of property they own. That outsized effect allows them to raise rent far higher than they would otherwise. They also have a tendency to monopolize development so there really is zero escape from their management, new buildings are immediately bought and integrated into the mass. That's without getting into price fixing behaviors through things like RealPage. I originally moved away from Austin after my apartment had a 30% rent increase, and this was far away from the core in Austin (Cedar Park).

andrepd 2y ago

How is this "entrepreneur" going to build in central London I wonder

nradov 2y ago
If getting building permission was easier then real estate developers would buy up low-rise buildings and replace them with residential skyscrapers. Whether this would be good for London is a matter of perspective.
naming_the_user 2y ago
Loads of space in Zone 2 and beyond. Near to me are huge retail parks with parking that are basically relics of the 80s. The land would be worth far more as housing. You can't easily build housing on them because you won't get permission and if you did you'd be forced to build "affordable housing" e.g. give up a ton of the profits. So no-one does it.

fzeroracer 2y ago

Usually the problem isn't just arbitrary restrictions or prevention of house building in the US, it's an issue of both amount of available land and how insanely large real estate managers/developers are. For example, if you wanted to avoid renting from a Greystar-owned property it is almost impossible considering the amount of property they own. That outsized effect allows them to raise rent far higher than they would otherwise. They also have a tendency to monopolize development so there really is zero escape from their management, new buildings are immediately bought and integrated into the mass. That's without getting into price fixing behaviors through things like RealPage. I originally moved away from Austin after my apartment had a 30% rent increase, and this was far away from the core in Austin (Cedar Park).