And yet, building housing units is the only way to lower housing costs. Every time a state proposes restricting housing construction limitations, some NIMBYs and those myopically focused on brow-beating corporations say, “rents will always rise, corporations will always jack up the prices! There’s no point!” And those voices are proven wrong again and again.
It turns out, companies can’t just arbitrarily raise the rent however much they want whenever they want. Corporations aren’t magical evil genies. They can only raise the price to what the market will bear. And that rate is entirely dependent on the ratio of housing units to households.
Corporate landlords got caught using an app on people’s phone to collude to price fix rent. They have settled, but there is very little incentive created, because nothing made it to a court decision, to stop this behavior. So yes, they do raise the rents whever they want, because they have coordinated with every other in the region to have similarly over blown pricing.
Just because they aren’t inflated to fit and absurdum argument doesn’t mean they aren’t able to charge way over the actual market value of the rent via market control, and collusive monopoly. This is a well known consequence of a captured market, and why we have the concept of anti-trust at all.
So yes, the corporate landlords are be able to raise the cost of housing to evil levels of extortion without being genies, or magical, or any other thing no one is arguing they are. Especially when so many properties are purchased simply to sit on the property and have no real concern for using it to house anyone, as there are largely empty apartment buildings, even whole neighborhoods, in the most desirable places, when we can’t seem to even have enough housing around to bring the costs down marginal amounts.
You’re assuming a fair and rational market. These clowns are actively rigging the market. My city has very high commercial rents despite less than 50% occupancy with two feudal dickheads running the show. Businesses are having to close left and right. Apparently the banks will get mad if values drop and the the whole market will collapse, and that’s apparently “bad”, despite this being exactly what should happen in a fair market, and exactly what we need. It’s insane how much we’ve allowed these assholes to derisk.
And yet, building housing units is the only way to lower housing costs. Every time a state proposes restricting housing construction limitations, some NIMBYs and those myopically focused on brow-beating corporations say, “rents will always rise, corporations will always jack up the prices! There’s no point!” And those voices are proven wrong again and again.
It turns out, companies can’t just arbitrarily raise the rent however much they want whenever they want. Corporations aren’t magical evil genies. They can only raise the price to what the market will bear. And that rate is entirely dependent on the ratio of housing units to households.
Corporate landlords got caught using an app on people’s phone to collude to price fix rent. They have settled, but there is very little incentive created, because nothing made it to a court decision, to stop this behavior. So yes, they do raise the rents whever they want, because they have coordinated with every other in the region to have similarly over blown pricing.
Then why don’t they all charge $10k/month in rent? Or $100k? Or a million?
No amount of collusion can magic away basic market limits.
Just because they aren’t inflated to fit and absurdum argument doesn’t mean they aren’t able to charge way over the actual market value of the rent via market control, and collusive monopoly. This is a well known consequence of a captured market, and why we have the concept of anti-trust at all.
So yes, the corporate landlords are be able to raise the cost of housing to evil levels of extortion without being genies, or magical, or any other thing no one is arguing they are. Especially when so many properties are purchased simply to sit on the property and have no real concern for using it to house anyone, as there are largely empty apartment buildings, even whole neighborhoods, in the most desirable places, when we can’t seem to even have enough housing around to bring the costs down marginal amounts.
You’re assuming a fair and rational market. These clowns are actively rigging the market. My city has very high commercial rents despite less than 50% occupancy with two feudal dickheads running the show. Businesses are having to close left and right. Apparently the banks will get mad if values drop and the the whole market will collapse, and that’s apparently “bad”, despite this being exactly what should happen in a fair market, and exactly what we need. It’s insane how much we’ve allowed these assholes to derisk.
this person never heard of abolition of private property
That proposition is not about restricting housing construction.