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
Rent can only go as low as the owner’s mortgage. To go lower, it first has to go through foreclosure (or sold at a loss) and get resold at a reduced priced. Then relisted. That process takes a while.
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