Searching for apartments in the LA area – there are 558 listings on zillow in westside LA under 2k$. Many are within blocks of each other, lots are units in the same building. With so much inventory, shouldn’t market forces cause some landlord to lower the rent? Does the economic theory of supply and demand not apply for the housing market?
In: Economics
Inventory numbers are relative. 558 seems like a lot, but if there are normally, for example, 4,000 its very low.
Try looking at the numbers over time and you’ll get a better idea if there is an inventory shortage or surplus.
Supply and demand absolutely applies to the housing market. The primary driver of housing prices right now is relative lack of supply.
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