Comment on Rents Are Moderating. So Why Isn’t That Showing Up in Inflation Data?
Letstakealook@lemm.ee 2 years ago
Rents aren’t moderating, and most leases are no longer a year or more due to price fixing via software by major corporations in the space. The author clearly has no idea what the current rental market is like.
silence7@slrpnk.net 2 years ago
I agree that there’s collusion among landlords via the use of common rent-setting software, and that your personal rent didn’t go down. I don’t see real evidence that the stats here are wrong in claiming that the average rate of increase has dropped a lot though.
Letstakealook@lemm.ee 2 years ago
The rate of increase might be going down, but that doesn’t mean much when they have increased so astronomically to begin with. Additionally, the goal of this software is to create the highest number of prospective renters at a single time. For instance, I signed my current lease for nine months at about $1200 per month (the cheapest option), while a year was $1700 a month. When I asked about this large Discworld, especially for the longer term, I was told the software calculates the number of leases ending at a specific term (across all locations using the software) and offers the cheapest option for the term with the most leases ending. It’s completely designed to create massive demand to either force tenants to accept the next large increase or have to pay moving costs and still pay significantly more.
silence7@slrpnk.net 2 years ago
Rate of increase went down is exactly the definition of lower inflation.
Letstakealook@lemm.ee 2 years ago
I’m saying there is going to be larger “inflation” (I don’t think that’s the right term for gouging) on the way as the rent collusion increases as the current users have success. When they successfully create large, artificial, cyclical spikes in demand housing will continue to increase astronomically.