Two friends discuss the factors leading to high housing costs post-2008 crash. Exploring the impact of decreased housing supply on rental prices. Evolution of pricing software and antitrust issues in rental and airline industries. Addressing price-fixing and collusion. Challenging the concept of free markets in the housing market.
Rely on data for informed decisions and arguments.
Beware of algorithmic pricing manipulation in rental market.
Deep dives
The Use of Data in Argumentation
The podcast delves into how the speaker and their college roommate engage in competitive discussions supported by data and evidence. Despite disagreements, they insist on impartial and truthful information to validate their arguments. The speaker highlights their roommate, an economist, who relies on data to make informed decisions regarding capital improvements. This emphasizes the importance of relying on data to support arguments and decisions.
Impact of Short-Term Rental on Housing Market
The episode discusses the impact of short-term rental services on the housing market, specifically focusing on the growing cost of housing post the 2008 financial crisis. The speaker's economist friend attributes rent increases to a shortage of housing supply exacerbated by short-term rentals. Meanwhile, the speaker observes new apartment construction but notes a lack of housing for those with modest incomes, suggesting a disparity in the market.
Algorithmic Pricing in the Rental Market
The podcast exposes the controversial role of algorithmic pricing in the rental market, exemplified by software like YieldStar. These programs are accused of fixing rent prices at exorbitant levels by manipulating demand and inventory. The speaker compares this issue to past antitrust cases in the airline industry, illustrating how automated pricing tools can lead to collusion and unfair pricing practices. The narrative warns against the potential exploitation of such algorithms to inflate rental costs.
Most people today feel they have can choose from whichever experts best confirm their own deeply-seated beliefs. Sadly, this is wrong, and to understand how wrong, I try to answer the question of Episode 246: Why The Rent Is Too Damned High.
Find the Show Notes at: https://attackadspodcast.blogspot.com/2024/07/episode-246-why-rent-is-too-damned-high.html
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