4 ms·
Imagine if rent and housing costs were reflected the vacancy rate. I never really understood the economics of leaving spaces empty and not hemorrhaging money.
by puppycodes 9mo ago
Imagine if rent and housing costs were reflected the vacancy rate.
I never really understood the economics of leaving spaces empty and not hemorrhaging money.
My guess would be its a game of large numbers where private equity can own large swaths of properties and can afford to keep them vacant by controlling the market through manufactured scarcity? Is it like the diamond market?
- red-iron-pine 9mo agothey're playing the long game and it's better to hold and not hold. plus keep rents high and the handful of folks that really need it will pay it. several cities get around this by having under-utilization taxes -- e.g. slap an extra 30% on any property in X neighborhoods that are empty or otherwise cannot prove 50% occupancy