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Hour-Watch8988 t1_j4ofnh9 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

You’re completely ignoring the supply effect in your neighborhood. Apartments don’t just set prices; they take prices based on the demand dynamics and the other options available to renters and homebuyers in the area. More options for renters and homebuyers means landlords and home sellers need to accept lower prices to compete.

I think you’re getting confused by the fact that new apartments are new and people are generally willing to pay a substantial premium for that.

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[deleted] t1_j4pjio6 wrote

im not getting confused im just trying to lead the conversation. lead to the conclusion that there are other factors and its not purely "supply/demand", nothing is that simple. such as the fact that many people choose to pay a premium.

someone could flood the market with a million apartments, if they own all the apartments they have no incentive to lower the prices. & thats a lot of the type of real estate we're seeing, one company buying everything up

the same way you can have a million gas stations but they're always basically the same cost because the supply only comes from like 3 different places

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cantdressherself t1_j50xjvy wrote

I fantasize sometimes about becoming a billionaire and buying up apartments and setting the rent below market rate.

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[deleted] t1_j50y9kz wrote

i have a similar dream haha. Id love to win the lottery and build beautiful walkable affordable mixed zone neighborhoods that promote small businesses

I honestly don't think itd be profitable but if I had the money I'd pay people to bring their business there. like butchers and bakeries and grocery and coffee shops. they probably can't survive on the business of 1 neighborhood but id just pay them to stay haha

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Hour-Watch8988 t1_j4qo7xl wrote

We aren’t anywhere close to the point where individual owners have monopolistic power over housing supply. Even if an individual company flooded the market with a bunch of units, they’d still have to compete with existing stock.

I’m sorry but I have to ask: what’s your training in economics?

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[deleted] t1_j4qt3cz wrote

The company Invitation Homes (owned by Blackstone) already owns 90% of the homes in some areas of Atlanta & a total of 12,555 homes in Atlanta in general. they have many other real estate purchases across the country as well

investors accounted for 24% of all homes purchased in 2021 as well

corporations & investment firms are buying up real estate & it won't be long until there are monopolies all over the country

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