UBI Would Likely Increase Poverty Rather Than Reduce It (2019)

Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by carom on Monday October 10, 2022 @07:19PM (#33157535)

If I set rent to 3k a month for a old 600 sqft apartment no one will move in. If someone is paying 1.8k for that and I raise the rent to 3k they will move.

Landlords increase the rent to the maximum that people are willing to pay. You can dress up a unit and maybe get a little more but no one will pay you 5k a month for a 600 sqft unit last updated in the 80s. If they will then you have a housing shortage and you need to let landlords and builders build.

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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by WarOnPrivacy on Monday October 10, 2022 @07:44PM (#33157711)

> If I set rent to 3k a month for a old 600 sqft apartment no one will move in.

543 sqft condo, $2901/mo. ~10 seconds to find.

https://homefinder.com/property/547922513/Makati-San-Jose-CA...

> you have a housing shortage and you need to let landlords and builders build.

That existing homeowners have a counterproductive influence over housing starts is one of the factors that needs to be addressed - absolutely.

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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by labcomputer on Monday October 10, 2022 @08:50PM (#33158183)

> Landlords increase the rent to the maximum that people are willing to pay.

Yes, and?

And, if you institute a UBI of $1000/month, the maximum that people are willing (and able) to pay suddenly increases by around $1000/month. And since landlords are mostly not complete idiots, they will recognize this and increase rents by approximately $1000/month.

Which was the point of the poster you originally replied to.

The only way that won't happen is if another, cheaper, alternative exists (like buying a place to live instead of renting). Except that, wouldn't you know it, people selling houses have also realized that they can raise prices by the amount equivalent to a $1000/month increase in mortgage payments.

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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by carom on Tuesday October 11, 2022 @02:35AM (#33160141)

>if you institute a UBI of $1000/month, the maximum that people are willing (and able) to pay suddenly increases by around $1000/month

Most people are not willing to spend all of their excess money on rent. It will increase demand in desirable areas but landlords do not get to just raise rents because they want more money.

Your cause and effect are mixed up. Home owners don't do a calculation macro conditions and interest rates when setting a price. They look at comps, list, then go "wow, we got 3 bids over asking". They accept the highest one. The next sellers see their sale and set prices accordingly.

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