Why the rent keeps going up - Propublica report on app that lets property managers collude

[jmbar2]

Texas-based RealPage’s YieldStar software helps landlords set prices for apartments across the U.S. With rents soaring, critics are concerned that the company’s proprietary algorithm is hurting competition.

This report has a lot of detail about large property businesses are colluding on boosting rents. In some cases, the software algos show them that keeping some units off the market, while jacking up prices on the rest, can increase profits.

Capitalism run amuck.

https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

[PortTack]

1. The housing market in Austin and other over valued markets is beginning to fall with a growing

Number of properties on the market. Hopefully rentals will follow

[jmbar2]

2. I hope so

I graduated from UT many years ago when it was cheap to rent and go to school. Feel bad for students today trying to make it with such jacked up costs.

[Shipwack]

4. Housing prices might very well drop here;

Since I just bought a house a couple of months ago it would be just my luck to buy at the top of the bubble…

Then again, between Tesla and Samsung (among others) expanding their presence here, they just might stay high…

[SharonAnn]

14. I have been in that situation twice. During Reagan and Bush "recesessions". It took years for

Our house to appreciate beyond what we paid. Fortunately we were able to stay in the houses until that happened. BTW, when we bought the first one the rates were 15% and 9,5% for teje second one. We were able to refinance to 11.5% and 7%.

It was really a struggle, but we were extremely fortunate and able to survive it. Many were not so fortunate and it devastated them. I still feel sorrow about that.

[doc03]

3. Rents have gone up here because of out of state

gas well drillers and pipeliners. Money is no object for the
energy companies, I have heard their workers get around $3000 a month for living expenses. They can pay way more than the average local working people. The property owners naturally took advantage of it. Real estate values have gone out sight too.

[calimary]

5. Good to know.

Not terribly surprising, though.

Business will seek out ANY advantage. ANY way to put its thumb on the scale and get away with it.

Count on it. There's money to be made.

[Cozmo]

6. End the Prohibition on Rent Control

Communities can democratically enact policies to limit how much landlords can charge for rent

[IronLionZion]

7. It's easier to blame Biden

than to blame greedy property owners colluding to keep prices high

[Crowman2009]

8. Hmmmm, wonder if this software is gonna get hacked?

I won't shed a tear if that happens.

[jmbar2]

13. That's a great idea.

[bucolic_frolic]

9. You always want to hold back some good tables in case a wealthy customer arrives

[DownriverDem]

10. Developers

would rather invest in high scale condos and apartments. Higher rents can be charged and higher prices can then be made from the sale of the properties. Lower/middlle class developments do not make them enough money. So it comes down to greed.

[TexasBushwhacker]

11. Well, they just evicted 60K in Texas

so I guess there will be a flood of open units.

[jmbar2]

12. That's heartbreaking - where did you see this?

There's got to be a way to preserve housing for the working class.

[TexasBushwhacker]

16. Sorry, that's for all of 2022

But there has been an uptick recently. However, they said that 2/3 of people who appeal their evictions get them dismissed.

[Ziggysmom]

15. And what do tenants get in return? No algorithm for that! Rents go up while many scum

owners are lax on upkeep and repairs. More and more elderly baby boomers are being priced out of housing and elderly subsidized housing is in short supply. The frail and disabled can't get jobs to cover rent increases and are becoming homeless. I'm seeing folks near me having to move in with family, friends or roommates to keep from being homeless. But yet the lower income repube voters still don't see how to vote in their best interest!