Recent history has been corporate rents not decreasing amid tight supply, the question being asked repeatedly (and repeatedly not answered) in this thread is “how exactly would landlords continue seeking high rents if housing were no longer scarce?” The only answer so far has been “by buying up the supply and renting it out” which completely ignores the obvious fact that renting out housing may reduce the supply of purchasable properties, but increases the supply of rental properties. There is no reason to assume collusion among a set of landlords would be enough to keep rental prices high if supply is no longer tight. So how exactly would landlords continue seeking be able to keep prices high if supply continues to increase?
> “how exactly would landlords continue seeking high rents if housing were no longer scarce?”
I think land lords wont lease out at marker rate due to that would lower the book value of the house which would make the banks call in loans.
Like, bank and land lords have some sort of understanding which in practice is some sort of price fixing and market collusion via proxy.
Not a direct response but just a follow up question. I'm curious how much surplus supply folks think there needs to be in such a scenario. We've seen that landlords are willing to hold units vacant in order to keep their property values up and avoid renting out at a lower price. At what point does thw math say that should collapse? 10% vacancy? 15%? 30%?