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The fundamental problem here is investment cash flows eclipsing operational cash flows. This invalidates basic economics of supply and demand price equilibrium.
by jl2718 2y ago
The fundamental problem here is investment cash flows eclipsing operational cash flows. This invalidates basic economics of supply and demand price equilibrium. In this case, it means that the landlords can restrict supply without losses.
- gruez 2y ago1. Opportunity cost is a thing. Even if a vacant unit doesn't cost you anything, you're still leaving money on the table by not renting it out. 2. the propublica article claims that realpage increases overall revenue by renting out less units.
- supplied_demand 2y ago==Even if a vacant unit doesn't cost you anything, you're still leaving money on the table by not renting it out.== From an economics standpoint, if you rent out 10+ units, having them 100% rented would also indicate that you are leaving money on the table. Maybe there could be a fine/tax for units vacant over 6 consecutive months?