What the fuck is it called a concession… rather than “fair market price”?
Because they’re not giving fair market prices, once you get into the meat of the article
That’s really only true if the good that’s being purchased is necessary to live.
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.
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 🙄
Also they are doing it to keep their assets looking good on paper cause what you charge in rent values the asset which is dumb as fuck.
If it’s a temporary discount it still reads on paper as if the rent hasn’t decreased but if it does go down and suddenly people who have you loans based on that passive income and asset wealth catch on they will realize their loans are fucked.
We are on such a dangerous precipice because everyone has to pretend that this is totally sustainable or else we absolutely have a market crash a lot like 2008 and wow who would have seen that coming right?
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.
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.
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.
It’s a bubble. If they don’t up real estate investing then the market goes down and they stop making money. But yes, the hypocrisy.
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.
