– how can rent be so high when there are so many listings? Shouldn’t competition drive it down?

Question

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

Answer 1

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