SpiritedCamel_ t1_j9utrws wrote
> Rent prices are driven exclusively by the balance of supply vs. demand in a given market.
This isn't fully accurate. Yes, the supply relative to demand is a major driver. Average incomes and income distributions also impact prices.
In Boston, we have low supply relative to demand AND high average incomes AND high dispersion of incomes.
This results in landlords being able to price available apartments at high prices because the pool of potential renters: a) don't have a large supply to choose from, and b) some in the renter pool have very high incomes and are willing to pay a lot because of the low supply.
letoatreides_ OP t1_j9zautb wrote
That is a good point, "demand" is never really just the # of potential "buyers", but also each buyers willingness to pay, which is of course highly influenced by their ability to pay. Once there's a shortage of anything, assuming prices are allowed to freely fluctuate, those with the most $$ are first in line. But that's capitalism for ya.
At least the government has a separate pool of income restricted housing units, where the selection is based not on wealth, but on (household size/dependents? seniority on the waitlist? being a lottery also...luck?)
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