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.
Kind of. It’s artificially inflated by private parties lobbying and achieving regulatory capture to manipulate the market by constricting supply.
Yeah aka market correction to reach equilibrium. Nothing to see here, move along, move along.
My eye twitches a little every time a realtor calls depreciating house prices a “market correction”. Bitch please, an actual correction would be a 50% reduction in value.
Well the market disagrees with you. And as long as people are forking over $1 million for a starter home and all other equities and commodities are at all time highs, prices won’t budge.
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.
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.
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!
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.
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.
There’s a town near us, we’re waiting for the housing bubble to collapse so we can move there, in the past 10 years, they’ve built luxury apartment building after luxury apartment building, hoping that the university students in the town will rent them. They’re about to get a harsh awakening.
Good fuck em
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.
