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vermillionmango t1_j4n0xbs wrote

Reply to comment by [deleted] in New apartment buildings in low-income areas lead to lower rents in nearby housing units. This runs contrary to popular claims that new market-rate housing causes an uptick in rents and leads to the displacement of low-income people. by smurfyjenkins

Because there are only so many people who will pay a particular price point.

They will build in low income areas and charge high rents if people will pay it. It happens in most cities, and it's what 90% of anti gentrification stuff is about.

Why would you wait to charge 1.9? Why not charge that before the apartments go up? In fact why not charge 2.5 or 3? Who is your competition? The only reason you would keep your price at 1.9 is because people can choose your drafty victorian or a new apartment.

Now what if another couple apartment buildings went up and to entice renters the first building lowered their rent to 1.7? Would you drop to 1.6?

The only difference between affordable and luxury housing is supply. Should the rise in egg prices mean we stop breeding egg laying hens? Do we have a shortage of eggs or are eggs now luxury eggs?

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