Quote:
Originally Posted by mhays
You say new housing moves rents for existing buildings up, then you conflict with that by saying construction can also stabilize rents or move them down.
Your fee-based recipe is exactly what would make Seattle a divide of rich and poor. It would help a few people but raise housing prices substantially for most renters. "Doing something" doesn't have to mean moving backwards.
All rentals are unknown quantities. We can only ask the owners, whether it's one at a time or comprehensively as the brokerages attempt. So far the owners are clamoring to build micros and saying they're generally full. That's a pretty good sign.
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I think the problem is you see the supply/demand equation as a fixed number. I see it as a very fluid one that changes over time. When demand is high, new housing raises the rental rate bar higher. Owners of older bldgs take advantage of the higher rental bar and move their rents up accordingly.
Conversely, if supply exceeds demand, then rates can stabilize or go down.
Again, charging fees depends on the overall goals of the city.
Again, micros may prove to be a huge success. However, that future is still unknown. Not enough construction or activity. As a person who has built and managed property, I don't think they will be successful. That's my opinion.