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Lots of places in the world have legally mandated percentage by which rent can increase for a unit per year. It might be 2% or 3%, but it is a fixed number that
by abdullahkhalids 6mo ago
Lots of places in the world have legally mandated percentage by which rent can increase for a unit per year. It might be 2% or 3%, but it is a fixed number that is fought over politically before being decided. That is the function that you are claiming rent payers don't care about. But they do, as evidenced by elected officials enforcing the number they think will get them the most votes.
- dghlsakjg 6mo agoThat’s completely distinct from increased supply driving down rents through market mechanisms. That process is completely independent of supply and demand in open markets. People don’t give two shits about politically determined rent caps if rents are dropping through supply increases. I’ve lived in those places you describe and that mechanism creates market distortions that paradoxically drive rent way above the market clearing price for new entrants. In any case, none of those places place restrictions on lowering rent due to competitive pressure.