• Maggoty@lemmy.world
    link
    fedilink
    arrow-up
    4
    ·
    edit-2
    3 months ago

    Econ 101 falls apart when landlords are allowed to participate in a pricing cartel. They can also make more money off the asset in their book worth X amount than they can filling the unit with a tenant at a lower price. This is possible because they have a minimum percentage filled at a price that covers their costs for the unfilled units.

    So there is no incentive for them to lower prices unless they need to raise revenue for some reason.