this post was submitted on 01 Nov 2023
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649
14 big landlords used software to collude on rent prices, DC lawsuit says (arstechnica.com)
submitted 1 year ago by return2ozma@lemmy.world to c/news@lemmy.world
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[–] BT_7274@lemmy.world 159 points 1 year ago (10 children)

I work in this industry. The biggest problem with the software is it gave the management companies instant access to everyone else’s current prices. The industry has used “market surveys” for years but you had to actually call around and gather those prices yourself. It’s a very time consuming process so many only did their surveys sporadically.

With the software you had instant access to current price data and everyone pretty much raised their prices to match the market average. Then the newer/fancier properties saw the new higher average and thought “We’re a better property so we can raise our prices above the competition.” Which then led to a higher average that the rest then met again. Rinse and repeat and you have a de facto price fixing cartel.

[–] stella@lemm.ee 90 points 1 year ago (3 children)

This is why 'competition lowers prices' is a load of bullshit.

Ya'll ever seen Walgreens and CVS? Same prices, right next to each other.

What about 2 gas station on opposite sides of the street, charging the exact same price for their fuel?

It's a gentleman's agreement at best, and a cartel at worst. Either way, no business is going to start an 'undercut war' because they don't want their opponents to do the same thing.

Here's another fine example: Nvidia and AMD. AMD releases worse GPUs, then just piggybacks off of Nvidia's ridiculous prices.

It's all a game to funnel as much money as possible to as few people as possible.

[–] dudewitbow@lemmy.ml 47 points 1 year ago (1 children)

competition only lowers prices if supply isn't limited sadly. And due to how the housing system works, that would virtually never happen.

[–] dubyakay@lemmy.ca 3 points 1 year ago

It could. If something causes housing to be less in demand. Like negative population growth.

[–] SeaJ@lemm.ee 15 points 1 year ago

A duopoly is not a competitive market. It's only when you have lots of suppliers and lots of purchasers that a market is actually competitive.

[–] Asafum@feddit.nl 0 points 1 year ago (1 children)

"It’s a gentleman’s agreement at best, and a cartel at worst. Either way, no business is going to start an ‘undercut war’ because they don’t want their opponents to do the same thing."

Play any MMO and you'll see the fallout from that. When it doesn't actually matter in the real world and people go do that everything plummets in value to near 0 and makes it not even worth your time to attempt even in a damn video game. They'll never drop prices to compete in reality because of that reality.

[–] stella@lemm.ee 1 points 1 year ago (1 children)

Lol. Here we go with the analogies again.

Do you think your MMO analogy is a 1:1 representation of the real world?

[–] Asafum@feddit.nl 1 points 1 year ago

Of course not 100%, but it's supporting what you said because it's a facet of human nature and how people act. Not sure what your issue is with me agreeing with you?

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[–] anon_8675309@lemmy.world 54 points 1 year ago (2 children)

Now as punishment, reset rent prices back a few years.

[–] stella@lemm.ee 12 points 1 year ago (1 children)

This is the true affirmative action.

[–] jackalope@lemmy.ml 3 points 1 year ago* (last edited 1 year ago)

Reparations not affirmative action.

[–] MelodiousFunk@kbin.social 11 points 1 year ago

The 2020 Revenge Tour will continue until ~~morale improves~~ we decide we're done bleeding the plebs dry.

[–] bobs_monkey@lemm.ee 27 points 1 year ago (1 children)

And are rent prices actually going to come down?

Survey: nope!

[–] garretble@lemmy.world 25 points 1 year ago (1 children)

I thought basically every landlord now uses some software to make sure they charge “market prices” even though their properties are trash.

[–] njm1314@lemmy.world 13 points 1 year ago (1 children)

Sounds like you're saying every landlord should be taken out the back and beaten.

[–] theuberwalrus@lemmy.world 17 points 1 year ago (1 children)

That's a weird way to spell guillotine

[–] CADmonkey@lemmy.world 4 points 1 year ago (1 children)

I don't have a guillotine. But everyone has a beating stick of some kind somewhere, and if not they're easy and cheap to make.

[–] greybeard@lemmy.one 4 points 1 year ago (1 children)

Have you seen the rent on beating sicks these days?

[–] CADmonkey@lemmy.world 2 points 1 year ago

Sad, back in my day, people could craft their own.

[–] Adalast@lemmy.world 17 points 1 year ago (2 children)

God, I want to become a mayor or governor or something so I can push a rule through that says only 5% of single-family properties in any jurisdiction are allowed to be rentals, and landlords have to purchase what amounts to "tokens" from the city that are priced inverse proportionally to the ratio of tenant income to rent to be able to keep the rental. Also, wage discrimination is not allowed. If a potential tenant comes forward with proof, the landleech has to prove that they did not discriminate or they will not be allowed to purchase tokens the next year.

Idk, something. Some limitations on the number that any individual can hold in a city and punish them for overcharging.

[–] Asafum@feddit.nl 2 points 1 year ago (1 children)

I've seriously been considering checking out what it would take to build homes and just make a company that only builds starter homes that can't be sold to corporations. Fuck this system running out of control... Rent through the roof and no housing for the poor/lower middle class....

I absofuckinglutley do not in the slightest bit care about being rich, if the company could survive and support a "normal" life for me that would be more than enough.

It's absolutely absurd that we allow the market to run rampant like this and just shrug it off. "Housing crisis? I don't see one, we're selling large houses like hot cakes! Most well over asking price!"

[–] Adalast@lemmy.world 2 points 1 year ago

So something like a for (ethical) profit Habitat for Humanity? I have had a similar fantasy, start companies in each of the major problem sectors that operate openly and honestly only slightly above solvency and offer quality at good prices just to drive the greedy fucks out of business, then I just stay there. I don't take advantage of the monopoly, I just live as I have been. I envision putting the actual material and labor cost of each product on the packaging in plain English. Kinda like a dietary and ingredients info table for a television. Don't put in spyware, don't put in random hidden cameras behind a screen, don't take permissions on devices so I can listen in on people. Do a bank that micro-lends at a 1% markup from the interest rates on my savings accounts. Make everything repairable and put a wiring schematic on the inside of the case if it is a large enough unit. Etc. You know, be ethical in the way I treat my employees and customers. I know, radical concept. I guess that is just the effect of having a math degree, I'm used to radical concepts.

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[–] tsonfeir@lemm.ee 6 points 1 year ago

Humans are cannibals.

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