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Originally Posted by mhays
Hmmm. Read my sentence again. It describes two conflicting concepts by you. You already know I disagree with the first point. Some people might infer that I agree with the other point, which I do.
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That's just it it.......they are not conflicting.......
over time, both concepts will play a role in rental prices.
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If you look at my other posts that should be clear...I've harped on the idea that keeping supply ahead of demand will help keep prices in check, and changes in the supply/demand equation means prices can move up or stabilize/fall.
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Yes, you've harped on the idea that keeping supply ahead of demand will keep rents in check. In a planned economy, that may be possible. However, in a free market economy, what is the formula you would use to first predict demand two years down the road and then keep supply ahead of that demand? How would you factor in construction rates, lending practicing etc.? How would you get developers to follow the formula, not building too many or too few units?