Re:A lot more market-rate construction helps low-income rent...
by icebraining on Tuesday March 24, 2015 @09:55AM
(#9256531)
And anyways, the monopolist doesn't corner the market directly; they use inside information to buy cheap, and have excess capital to take advantage of market opportunities. How many old west movies are premised on some rich guy trying to buy up all the land in town because they know the railroad is coming through?
In what way does that apply to SF?
Re:A lot more market-rate construction helps low-income rent...
by seanmcdirmid on Tuesday March 24, 2015 @09:59AM
(#9256561)
Today, tomorrow, or yesterday?
SF is already sold out, so it doesn't apply at all; there is nowhere to build and all the property is spoken for. It might have applied 110 years ago after the great fire, or even in the early 90s after the S&L crisis, but not today.
You aren't making sense. The monopolist doesn't buy "10 apartments", they just buy the entire building since those 10 people are "renting." You only have to buy from the person who owns the building; even in an non-free market renters have no ownership rights.
> Well, the 10th would be able to rent his land out at nearly the same price as the monopolist, say $2.50. But notice that the 10th property owner didn't have to over-pay for his land, so he will is making way more profits than monopolist, which would price his property out of the range of the monopolist.
When did the 10th renter become a property owner?
And anyways, the monopolist doesn't corner the market directly; they use inside information to buy cheap, and have excess capital to take advantage of market opportunities. How many old west movies are premised on some rich guy trying to buy up all the land in town because they know the railroad is coming through? Those are actually based on "true stories." The late 1800s was full of that.