Fact is, the supply of homes is just as much to blame for high rent prices as greedy landlords.
Again, supply and demand only determine how much a landlord can charge, they do not force them to raise prices.
If anything, supply not matching demand enables more greedy behavior.
If the landlords charged less than what the home is worth, you would never be able to find a place to live near where you want/need as everything would be sold out.
Only if you assume that only local landlords rent out cheaply while all others continue to raise rents. Besides that there are always factors why certain locations are more popular than others.
You’re generally right that insufficient housing is a supply problem but housing is not like other goods that can just be substituted.
If the price of steak goes up, I can just stop eating steak but if the price of housing rises, just becoming homeless is not a reasonable option.
And sure, if the rent in the place you want to move to is too high then maybe don’t move there.
But if the rent in the place you already live in rises then what? Just move out, away from your home, away from friends and family, away from your job?
So yes, more housing supply might be the solution* but it still is no argument that greed is not the problem.
Why did the landlords charge $300 20 years ago when they could have charged $500? Were they just less greedy? Or was the supply of homes appropriate for the number of people?
People have always been greedy. They’re not more greedy today than they were 20 years ago. Is it a problem? Yes. It will always be a problem. But there are other issues at play that need to be recognized or nothing will ever be solved.
Why did the landlords charge $300 20 years ago when they could have charged $500? Or was the supply of homes appropriate for the number of people?
Yes supply and demand limit how much they can charge. I’ve already conceded as much 8 hours ago.
People have always been greedy. […] Is it a problem? Yes.
So that feels like an appropriate answer to your question from yesterday
Is it greedy landlords? Or is there a bigger issue at play, and landlords are the scapegoat?
I think you summarized it nicely, including your comment on the nature of capitalism.
It is not a coincidence, that basically all early criticism of capitalism is centered around landlords. Even Adam Smith criticized the “rentier”.
Look, I agree with you. We need more housing supply. It reduces landlords ability to raise rents.
But it does not change the underlying issue that landlords are greedy and will charge as much as they can get away with.
Again, supply and demand only determine how much a landlord can charge, they do not force them to raise prices.
If anything, supply not matching demand enables more greedy behavior.
Only if you assume that only local landlords rent out cheaply while all others continue to raise rents. Besides that there are always factors why certain locations are more popular than others.
You’re generally right that insufficient housing is a supply problem but housing is not like other goods that can just be substituted.
If the price of steak goes up, I can just stop eating steak but if the price of housing rises, just becoming homeless is not a reasonable option.
And sure, if the rent in the place you want to move to is too high then maybe don’t move there.
But if the rent in the place you already live in rises then what? Just move out, away from your home, away from friends and family, away from your job?
So yes, more housing supply might be the solution* but it still is no argument that greed is not the problem.
*with all the previous caveats
Why did the landlords charge $300 20 years ago when they could have charged $500? Were they just less greedy? Or was the supply of homes appropriate for the number of people?
People have always been greedy. They’re not more greedy today than they were 20 years ago. Is it a problem? Yes. It will always be a problem. But there are other issues at play that need to be recognized or nothing will ever be solved.
Yes supply and demand limit how much they can charge. I’ve already conceded as much 8 hours ago.
So that feels like an appropriate answer to your question from yesterday
I think you summarized it nicely, including your comment on the nature of capitalism. It is not a coincidence, that basically all early criticism of capitalism is centered around landlords. Even Adam Smith criticized the “rentier”.
Look, I agree with you. We need more housing supply. It reduces landlords ability to raise rents.
But it does not change the underlying issue that landlords are greedy and will charge as much as they can get away with.