This argument doesn't apply well for things that are basic needs, like housing, food, and even clothing. Everyone deserves a roof over their head to have a stable and safe environment to thrive in. If real estate companies and their private equity share holders know my income and savings to exploit housing at the absolute maxim I can afford (50% or more of many people's income), then I will suffer economically. Sure, I get housing, but the housing I can afford gets smaller, I have to sacrifice other things, and I have no savings leftover while private equity maximizes value extraction on a depreciating asset. This extends to many other expenses, too, jackets included in cold environments. Your take is undergrad microeconomics at best.Take a wider view, please.
I don't think rents being high are largely or even substantially due to something like private equity engaging in surveillance pricing. Paying 50% of your income in rent is bad, and nothing in the post says otherwise. But a landlord knowing your income or savings is not market power. They still can't charge you more than a comparable unit down the street. High rents are much more about restricted supply. Policies like the ADU law and zoning to allow denser housing would do much more to bring rents down than anything having to do with surveillance pricing.
This argument doesn't apply well for things that are basic needs, like housing, food, and even clothing. Everyone deserves a roof over their head to have a stable and safe environment to thrive in. If real estate companies and their private equity share holders know my income and savings to exploit housing at the absolute maxim I can afford (50% or more of many people's income), then I will suffer economically. Sure, I get housing, but the housing I can afford gets smaller, I have to sacrifice other things, and I have no savings leftover while private equity maximizes value extraction on a depreciating asset. This extends to many other expenses, too, jackets included in cold environments. Your take is undergrad microeconomics at best.Take a wider view, please.
I don't think rents being high are largely or even substantially due to something like private equity engaging in surveillance pricing. Paying 50% of your income in rent is bad, and nothing in the post says otherwise. But a landlord knowing your income or savings is not market power. They still can't charge you more than a comparable unit down the street. High rents are much more about restricted supply. Policies like the ADU law and zoning to allow denser housing would do much more to bring rents down than anything having to do with surveillance pricing.