I'm not sure why the bigger issue isn't being talked about more, but yes, algorithms and "AI" are deployed in fashions that optimize profit. That's it. Profit. It's only getting much, much worse.
This is correct. I am currently working on a system to do price and purchase monitoring and optimize people’s purchasing. One of the things that I keep having to work around is dynamic real-time personalized pricing systems as they are more prevalent than I realized.
It seems almost inevitable that everyone will move to subscription / surge pricing models unfortunately. There are no structural incentives for retailers to keep prices lower. Perhaps bulk purchasing will change the game at some point, but it seems unlikely.
If things keep going this way, we will all end up paying the maximum an AI or algorithm thinks you can/will pay based on all of the data about you, your region, your friends, etc. For everything, not just rent.
You forgot the big input: how many other lessors are offering properties. There isn't a dial that owners can turn to just raise rents in a 2-sided market.
You're quite right. The trouble with cartels is the incentive to cheat by offering a better price under the table is very hard to resist.
For example, auto dealers often will sign terms with the manufacturer saying they won't sell a car below a certain price. But the dealers can (and do) "cheat" on this by throwing in extended service plans, below-cost financing, a higher price on your trade-in, etc.
A common theme on HN is that people cannot negotiate prices. They can, all the time. All that's needed is to try. Even just saying "is a discount available" will often get you 10% off. (Of course, you have to be nice about it.)
Unless the supply problem is solved, there is no cure for not enough housing stock on the market. You can shuffle people around and then what? If there are only 10 holes and 20 pigeons and you can have 1 pigeons per hole, some pigeons are gonna end up in the wild
It seems almost inevitable that everyone will move to subscription / surge pricing models unfortunately. There are no structural incentives for retailers to keep prices lower. Perhaps bulk purchasing will change the game at some point, but it seems unlikely.