Re:Making sense of what’s going on in the housing market
by chii on Wednesday April 21, 2021 @11:06PM
(#26898289)
> If I stop renting, someone else will pick up the bill.
aka, they are charging the market rate, which other people in the market are willing to pay for the use of the building.
The increase in rental income for landlords mean that there should be pressure to build more buildings to let out. Market forces _should_ cause stablization, if only it is allowed to work long term. Short term, there will be pain, because you can't build a new building instantly, but this pain is what causes new buildings to spring up. Market-distorting forces, such as building density/height regulation, and local residents' complaints (NIMBYism) is the cause for the lack of stablization imho.
aka, they are charging the market rate, which other people in the market are willing to pay for the use of the building.
The increase in rental income for landlords mean that there should be pressure to build more buildings to let out. Market forces _should_ cause stablization, if only it is allowed to work long term. Short term, there will be pain, because you can't build a new building instantly, but this pain is what causes new buildings to spring up. Market-distorting forces, such as building density/height regulation, and local residents' complaints (NIMBYism) is the cause for the lack of stablization imho.