I think this is good, but I doubt it'll actually impact rental prices as much as people think, because the problem is fundamentally a housing shortage.
They might not share info but they will regenerate identical suggestions from market data for ask customers effectively price fixing without clear collusion
I think it's a positive step for American housing market to slowly check off the list of pointless non-solutions so that we can finally arrive at the conclusion that the only way out of the crisis is to build housing. We're just following the San Francisco process here. Ban realpage. Tax vacancies. Complain about foreign investors. Put a tax on "mansions" that's actually a tax on apartment buildings. We will slowly, slowly check off all the boxes of the pointless things. Then 50 years later we can start building houses.
So, unfortunately, even in the best case scenario, the damage is already done. There's already far too much of the economy built on top of the inflated rents and property valuations. The only way to fix things is straight-up deflation. Which will obviously be very painful.
If you hand the Fed a lever to tax corporate revenue less wages paid to the 80% lowest paid workers (and exempt all other deductions) for such situations, it lets them create inflationary pressure on worker wages and deflationary pressure on pricing, which would cure the rent market within a few years at best.
11 comments
[ 3.1 ms ] story [ 26.0 ms ] thread1. Pick a rental rate. This can be based on public data, nonpublic data, or totally made-up.
2. "Strongly encourage" your users/customers to use the rate you picked.
3. 90% of your users/customers agree (historically speaking), legal collusion achieved.
> Not use models that determine geographic effects narrower than at a state level
They are forbidden from having different models for different cities?? This seems extreme to me. Any background on this?
https://www.youtube.com/watch?v=Kbztr5FDZtg