Comment by ProfessorLayton
Comment by ProfessorLayton 8 hours ago
I'm not talking about repricing specifically? I'm talking about how differently the housing market would behave if there was enough housing to go around.
Landlords have a 3rd option: They can sell the unit, because their unit no longer commands high prices due to housing supply meeting demand, and their capital is best used elsewhere.
If they are underwater and cannot sell above break-even, their bank will eventually do it for them.
As a commercial property, both their loan and sale price are contingent on the rental price.
So again, a disincentive to ever decrease rent (and thus demonstrate the market is softer and therefore you property is worth less).
Versus claiming it still commands higher rent (and is temporarily unrented) and thus more valuable.