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SomeConstructionGuy t1_j7p8g5y wrote

Reply to comment by Ok-Title-270 in How Can We The Increase Affordable Housing Supply? Ideas? by twentiesforever

This is not accurate. The rental management market has been massively consolidated over the last 10-20 years. Statistically we don’t need that much more housing. But we do need prices to reflect costs, not be a conduit for maximum profit.

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Ok-Title-270 t1_j7plno2 wrote

So you're telling me that when there's more abundance of something the price doesn't go down? Also nothing in our economy reflects cost, it's all about profit.

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BudsKind802 t1_j7q8avr wrote

Unlike what you may have learned in econ 101, the "free market" doesn't exist. Instead the market is unpredictable and tends to favor the rich. They just wave that off as externalities, but ultimately durable goods markets behave differently than widget markets.

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SomeConstructionGuy t1_j7pm79x wrote

I’m telling you that adding more supply doesn’t necessary lower costs when the price is controlled by what is essentially a cartel.

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Ok-Title-270 t1_j7qtplq wrote

A Vermont housing cartel?

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SomeConstructionGuy t1_j7s95je wrote

No. See the comment with sources. Read.

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Ok-Title-270 t1_j7sm1l8 wrote

No thanks

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SomeConstructionGuy t1_j7tx18m wrote

If you don’t want to learn then don’t ask.

It’s a thing nationally as well over half of corporate owned rentals are managed by one software. They can and do inflate prices which drags up all rental prices nationally.

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Ok-Title-270 t1_j7ugu2j wrote

And that constitutes a cartel in your mind?

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SomeConstructionGuy t1_j7uhf91 wrote

“an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.”

Yes. Many corporate property owners using common software to set prices enabling prices to be artificially inflated certainly looks like a cartel.

Do you disagree? And if so why?

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Ok-Title-270 t1_j81s8k3 wrote

I disagree because it's not that centralized and additionally is only able to happen because of government intervention

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