What the fuck is it called a concession… rather than “fair market price”?
Fair market price is when they can gouge you. Concessions is when they actually have to compete.
It’s Fortune magazine, that’s why.
Because they’re not giving fair market prices, once you get into the meat of the article
“what someone is willing to pay”
Sounds pretty fair market price to me.
That’s really only true if the good that’s being purchased is necessary to live.
I think it’s somewhat the opposite. Being forced to pay an extortionate price because otherwise you will be homeless, lose your possession, live on the street, beg friends or family for help, or live in a homeless shelter, isn’t a free market.
Oh it’s a free market alright.
It’s not fair, but it is free.
You could use that reasoning to justify that anything is a free market. The government is free to pass laws, the people are free to overthrow it.
At first I read this headline as a good thing, but after reading the article it’s bullshit. They’re just giving temporary discounts to new tenants while still gouging the existing ones. And it’s all in an effort to maintain their ridiculous prices 🙄
Exactly. Nothing long term or valuable is happening.
Yeah in the start they literally say median rent is 2 dollars lower than the record high which was set last year so with a paywall in front of it its basically misinformation by insuring most people only see the headline.
Why can’t they just offer the concession of lowering their rent in the first place, instead of relying on gimmicks like a first-year discount?
Because downward trends in rent affect real estate futures, which affects lending rates, which could cause the artificially inflated property values to collapse.
Not the artificially inflated property values!
Won’t somebody please think of the artificially inflated property values!
Many people do think about the inflated property values. Namely the landlord, the landlord’s accountant, the bank and the tax office.
So, for every single property there are at least 4 people thinking about the property value, because that’s where their money comes from.
A lot of apartments in my area do first year discounts. The reason for that is a lot of cities have rules about how much you can raise rent in a year. Discounts are a loophole since they can raise it based off the non-discounted value. Also moving sucks and a new place has a chance of being terrible (and you’re stuck for a year). So people are more willing to pay an increase once they’re already in an apartment they tolerate.
When the pandemic hit, the sheer panic of the wealthy people in my neighborhood who had multiple rental properties was super satisfying. Even more satisfying than seeing their panic was seeing their reactions to being asked why they don’t just sell their properties.
I can’t remember the last time I read an article about the economy that wasn’t solely for the upper middle class. …whatever that is now.
Never settle till a one bedroom is 500-700$ usd.
:)
Good fuck em
Paywalled. Where and why would the rental market be softening?
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Try this:
Then CnP the URL, the site maybe times out links to prevent getting overloaded.
Just worked fine for me.
Keep churning people. It’s annoying and difficult but everytime we move apartments, it’s time and money the LL needs to invest. The frothier the market, the more it favors renters.
That’s how concessions become the new price. Don’t make it easy on them.
Last move I did, one of the places I looked at tried to get me into a bidding war. The sheer fucking gall was unbelievable.
Good. That’s how it was and how it’s supposed to be.
What I find interesting is when landlords talk to each other, it’s “passive income!” but when they talk to the public, it’s so much work, and they’re providing housing to people out of altruism.
What a terrible news article. I can’t even read the whole thing without getting paywaled
