• Couldbealeotard@lemmy.world
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    4 months ago

    What do you think drives the price of rentals? Not being able to afford to buy keeps people stuck in rental living where they can be price gouged. If the price of houses drops due to an oversupply, more renters will buy, which reduces demand for rentals, which will drive down the price of rent making it more affordable to rent.

    • ASeriesOfPoorChoices@lemmy.world
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      4 months ago

      supply. and I look at growing population + foreign investment + rising post-covid building costs.

      you’re talking about shifting rentals to buys, which is stupid, because it flat out ignores lack of supply. we need more housing.

      • Couldbealeotard@lemmy.world
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        4 months ago

        Landlords hording property reduces the supply to people who want to buy. This shortage reduces the supply:demand ratio, which drives prices higher. Higher house prices informs the price of rent which is controlled by the people creating the shortage.

        People aren’t suggesting to abolish investment property, they are simply saying we should remove the abuse investment.

          • Couldbealeotard@lemmy.world
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            4 months ago

            The entry cost of the housing market is a greater driver of rent than vacant rental properties. The laws even encourage property owners to leave a property empty than lower the rent.