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by trimethylpurine
874 days ago
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I think it's because urbanites keep getting suckered into letting builders do "condensed affordable housing" under the false premise that more housing means cheaper housing. Obviously that would only be true if the units were owned by competitors. Where one contractor owns all the units they set the prices, and they have no reason to make them "affordable." Just condensed. |
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The money they make is {rent} × {units rented}. The reason they don't set rent to $1billion is that they will rent zero of them. I think this shows that they do have a reason to lower prices, at least at some range.