[HN Gopher] DOJ will examine whether RealPage helped landlords c...
       ___________________________________________________________________
        
       DOJ will examine whether RealPage helped landlords coordinate rent
       increases
        
       Author : RadixDLT
       Score  : 152 points
       Date   : 2022-11-25 16:42 UTC (6 hours ago)
        
 (HTM) web link (www.propublica.org)
 (TXT) w3m dump (www.propublica.org)
        
       | InFlightThrow wrote:
       | Isn't this _exactly_ how wages are set in tech?
       | 
       | Google, Amazon, Meta, etc. all report their payroll data to a
       | centralized third party who then reports back to them what they
       | should be paying their employees. Sure, companies can choose to
       | nudge those numbers up or down, but it's exactly the same thing
       | landlords are doing here.
       | 
       | We need to make colluding to keep rent high and wages low
       | illegal.
        
         | luckylion wrote:
         | Wages in IT are high for the same reason that rents in these
         | neighborhoods are high: demand is far greater than supply.
         | 
         | It feels great being on the supply-side and getting crazy
         | money, but it feels bad to be on the demand-side and having to
         | pay crazy money. And everyone will say that one of these is
         | perfectly fine and the other is outrageous.
        
           | socialismisok wrote:
           | No, I think the point being made is that it's bad to set
           | wages this way. If every company is colluding, then wages are
           | being kept artificially low. (Even in tech, where engineers
           | are in demand.)
           | 
           | Neither of these is fine.
        
             | luckylion wrote:
             | The salaries are high because of supply and demand. Big
             | tech companies collude to "keep them low" because they are
             | high.
             | 
             | Nobody here has a problem with their salary being high,
             | they feel it's totally fine because it benefits them. It's
             | only when they experience the other side that they're
             | outraged and want regulation.
             | 
             | Which is totally natural and fine, and I'm not saying it
             | shouldn't be allowed or whatever. But we should still be
             | aware that that's what it is.
        
       | SSchick wrote:
       | Collusion / price fixing as a service.
       | 
       | I'm sure a decent chunk of HN's population has lived or lives in
       | properties that are or were using RealPage.
       | 
       | Rant/Anecdote ahead:
       | 
       | We have recently decided to rent from a house from a private
       | landlord after equity (a RealPage customer), "offered" us a 15%
       | rent hike which they considered "reasonable" after massively
       | cutting staff, service, security & amenities during covid.
       | Practically every other building in the area (downtown Redmond,
       | WA) has increased prices in unison so there is basically 0
       | competition.
       | 
       | These companies have turned areas they operate into upscale meat
       | grinders that lure you with a "welcome" price only to
       | systematically hike up your rent way beyond inflation. To slowly
       | push you out if your salary doesn't grow faster to equal to their
       | hikes.
       | 
       | Many of our friends have similar experiences.
       | 
       | Imo corporate landlords need to be heavily regulated and need to
       | be broken up.
        
         | HDThoreaun wrote:
         | It's really just supply and demand. There aren't enough homes
         | and landlords know it. If there are 2 families for every home
         | you're gonna have a bad time, no way around it. Only solution
         | is building more.
        
           | lotsofpulp wrote:
           | In the case of housing, the tight timeframes for buyers and
           | the low opportunity costs for sellers do not allow for a
           | "fair" playing field.
           | 
           | If sellers collude, they can hold out for a few months or
           | even a year without a problem. But buyers are rarely in that
           | position.
           | 
           | Technically, it is a supply and demand issue, but the
           | feedback loop takes so long that it needs some other force to
           | keep it humming long term without sellers pushing society to
           | the brink of disaster.
        
           | SSchick wrote:
           | The building we moved out of started doing referrals again,
           | about 15% (according to a person I talked to at the leasing
           | office) of their apartments are currently empty and they are
           | still hiking prices, this isn't supply & demand, this is
           | price systematic price gauging.
        
             | HDThoreaun wrote:
             | Anecdotes are fun, and I'm sure many landlords are doing
             | this, but the data does not generally show it. Nyc is
             | sitting at 4% vacancy, only 1% above all time lows.
        
         | sethd wrote:
         | > I'm sure a decent chunk of NH's population has lived or lives
         | in properties that are or were using RealPage.
         | 
         | It took me a sec to realize you were referring to Hacker News
         | and not New Hampshire. :)
        
         | jseliger wrote:
         | We should deregulate the housing-construction market to
         | increase competition and decrease prices:
         | https://www.aeaweb.org/articles?id=10.1257/mac.20170388
         | 
         | This is fundamentally a problem with housing restrictions.
        
           | loeg wrote:
           | We can do both!
        
           | fallingknife wrote:
           | Unfortunately, the government knows they don't have to do
           | this because the public is dumb enough just to blame the
           | landlords, because that's who their checks go to.
        
         | loeg wrote:
         | > These companies have turned areas they operate into upscale
         | meat grinders that lure you with a "welcome" price only to
         | systematically hike up your rent way beyond inflation.
         | 
         | This was the operating model of large landlords before
         | RealPage, too. I happen to believe RealPage likely facilitates
         | illegal collusion, but it's not like large commercial landlords
         | were saints before.
        
         | switch007 wrote:
         | > Imo corporate landlords need to be heavily regulated and need
         | to be broken up.
         | 
         | A big issue at least here in the UK and Ireland is that many
         | politicians are landlords.
         | 
         | How do we fix that...
        
         | bombcar wrote:
         | Corporate landlords math out things and only do it as long as
         | it's profitable.
         | 
         | Private single-family landlords are often content renting as
         | long as they get more than the mortgage. And if you're a good
         | tenant they often don't bother checking comps at all until they
         | have to rent it again.
        
           | blululu wrote:
           | For a large operation it is complicated. The profit
           | maximizing strategy starts to become more entwined with
           | interest rates and taking out loans with properties as
           | collateral. The price of your rent can be higher than the
           | market rates on housing because housing is more or less a
           | byproduct of a financial services scheme.
        
             | nradov wrote:
             | Huh? Large landlords are unable to raise rents
             | significantly above the local market rate, unless they have
             | an effective local monopoly or collude with other
             | landlords. Rent prices are not byproducts of a financial
             | services scheme. When landlords ask for rent much higher
             | than the market rate, tenants eventually just move out.
        
               | bombcar wrote:
               | Landlords can get a bit above market (basically market +
               | cost of annoyance at having to move) but not much beyond
               | that.
               | 
               | But a substantial percentage of the population seems to
               | think they could charge $10m a month and everyone would
               | just have to take it.
        
               | jeffbee wrote:
               | People just abandon the whole concept of supply and
               | demand when talking about housing, even though it clearly
               | applies. Landlords can't charge more than a market-
               | clearing price and they won't charge less. Tenants can't
               | pay less and won't pay more. Collusion, either by
               | landlord syndicates or tenant strikes or whatever,
               | doesn't materially affect the market rents. The only
               | things that really matter are local supply and demand. Is
               | there a growing industry, an expanding population, and a
               | lot of immigration into your area? Prices will increase
               | if housing isn't built to compensate. Plain and simple.
        
               | fn-mote wrote:
               | > Landlords can't charge more than a market-clearing
               | price and they won't charge less.
               | 
               | I think your posts are great, to the point, a no-nonsense
               | economics approach to the question, and I largely agree
               | with them.
               | 
               | However, I'm wondering in this beautiful free-market
               | world ---
               | 
               | What value is being provided by RealPage?
               | 
               | The costs to the landlords I could find online seem low,
               | but with startups it's hard to tell what the "profitable
               | equilibrium price" of the service would be. For only
               | $10/month it would seem to be nothing more than saving a
               | few hours of labor for each property. (Which might be
               | better seen as ~$100+/rental event or something, since
               | the leases are probably lasting at least a year, but
               | still...)
        
               | davidw wrote:
               | jeffbee is correct:
               | 
               | "Supply skepticism and shortage denialism are pushing
               | against the actual solution to the housing crisis:
               | building enough homes."
               | 
               | https://www.theatlantic.com/ideas/archive/2022/11/us-
               | housing...
        
               | nullc wrote:
               | Lemme guess, were you working in google leadership when
               | they were conspiring with Apple to unlawfully fix wages?
               | 
               | Market forces are not magic pixie dust. The actions of
               | market participants are what create the market in the
               | first place. Colluding to fix prices, assuming the
               | collusion is widespread enough absolutely impacts prices.
               | That the buyers ability/willingless to pay limits the
               | maximum amount of rent extraction (har har) doesn't
               | change this fact: the equilibrium in the presence of
               | competitive pricing is still different than in its
               | absence.
               | 
               | Even partial collusion can still have an effect similar
               | to removing the units from the market, and this effect is
               | outsized when the market's supply is already very
               | limited. Say a collusion only controls 400 units in a
               | market of 20,000 (like, say, mountain view)-- you
               | wouldn't argue that demolishing those units would have no
               | substantial impact on prices, so you shouldn't argue that
               | removing price competition among them wouldn't either.
        
               | jeffbee wrote:
               | Apple, Intel, Adobe, Google, Pixar, and Intuit
               | collectively control a huge share of the local employment
               | market for software developers. That puts their collusion
               | into a different category altogether.
               | 
               | Why cartels can't work in industries with numerous
               | competitors is literally an Econ 101 topic. Historic
               | cartels only succeed with majority market share and high
               | concentration among a few players. We don't see anything
               | like that in real estate. Not even remotely close.
               | 
               | Your example also doesn't make sense to me. A cartel
               | controlling 2% of the inventory of apartments in a city
               | holds a few apartments off the market. This would indeed
               | raise the equilibrium price, but doesn't benefit the
               | cartel participants. All the excess profits in that
               | scenario are flowing to non-participants. It's the
               | perfect backwards cartel!
        
               | bobthepanda wrote:
               | The shape of housing also really matters.
               | 
               | The modern chunky 5+1 is only really affordable to build
               | for big landlords. Smaller landlord apartments are much
               | smaller, often the size of a subdivided house.
        
               | polygamous_bat wrote:
               | > Collusion, either by landlord syndicates or tenant
               | strikes or whatever, doesn't materially affect the market
               | rents.
               | 
               | Why? What is the logic behind this statement?
        
               | jeffbee wrote:
               | There are just way too many landlords to make it work.
               | There is no single dominant landlord and no number of
               | landlords small enough to fit around a conference table
               | that controls a significant portion of the housing stock.
               | Staying with my city of Berkeley, the notoriously abusive
               | (seriously, Google it for some extreme horror stories)
               | Everest Properties holds only 354 units. There are 30
               | different apartment owners who hold at least 100 units
               | and 6000 total landlords. There's just no way with that
               | diversity of ownership that collusion would amount to
               | anything.
        
               | hotpotamus wrote:
               | The allegation seems to be that RealPage was providing a
               | service to solve the coordination problem you're
               | elucidating.
        
               | lotsofpulp wrote:
               | Unless all rent prices are made public in real time,
               | buyers (and small sellers) do not have sufficient
               | information to determine what market price is.
        
               | nradov wrote:
               | Huh? Buyers (renters) have real-time information on
               | asking rents through sites like Craigslist and
               | Apartments.com. Have you not seen those sites?
        
               | lotsofpulp wrote:
               | Asking price is not the sale price. It is apparently
               | valuable enough for landlords to provide to RealPage, and
               | then in return get a pricing suggestion.
        
               | jeffbee wrote:
               | In my city we have a rent registry. Tenants have perfect
               | market information if they want it. This does not give
               | them pricing power. Objectively, Berkeley has one of the
               | worst housing crises in the nation. 3Bd/1ba 1000sqft
               | apartments are advertised at $7200/mo. Rents have
               | quadrupled in real dollars in 25 years. This is a result
               | of government strangling the construction market and
               | nothing to do with collusion or hidden pricing.
        
               | runnerup wrote:
               | Yeah I think this would work much, much, much better in a
               | city that didn't have a complete housing emergency crises
               | like Berkeley.
        
               | lotsofpulp wrote:
               | Of course, real time price information only conveys
               | movement of supply and demand curves, it does not
               | alleviate insufficient supply and/or demand.
        
               | raegis wrote:
               | > This is a result of government strangling the
               | construction market and nothing to do with collusion or
               | hidden pricing.
               | 
               | Actually, many apartments near prestigious UC schools
               | (Berkeley, UCLA) are priced to be affordable for two
               | students per bedroom. This is how some undergraduate
               | students have been renting for decades, from my own
               | personal observations. A $7200/month 3 bedroom can house
               | 6 students in bunk beds. So at $1200/month per student,
               | this is more than affordable for their upper middle class
               | parents.
        
               | jeffbee wrote:
               | You've just circumscribed the population of students
               | eligible to attend those universities to include only
               | members of upper-middle-class American families. Perhaps
               | you can see that is problematic.
               | 
               | Again, these prices have _quadrupled in real dollars_ in
               | only 25 years. Any notion that this is normal for a
               | college town is incorrect.
        
               | nradov wrote:
               | Berkeley, Los Angeles, and surrounding areas are hardly
               | college towns. It's just unrealistic to expect cheap
               | market-rate housing near Cal and UCLA.
               | 
               | The solution should be for the UC Regents to build more
               | on-campus dormitories, reduce enrollment at overcrowded
               | campuses, and build or expand campuses in areas with
               | fewer geographical constraints and lower housing costs.
               | Costs are much lower around UC Riverside and UC Merced.
               | There ought to be another campus in Fresno or
               | Bakersfield.
        
           | dnissley wrote:
           | I've found they're also far more likely to be absentee, and
           | far more likely to discriminate on the basis of whoever
           | happened to burn them in the past. They're also more volatile
           | -- many are new to landlording and if it's not working out
           | and they get a good offer they'll just sell meaning you've
           | got to move.
        
             | bombcar wrote:
             | Yeah, there are definite downsides.
             | 
             | Most small landlords make _less_ than appreciation when
             | it's all said and done - and if appreciation dries up many
             | will sell out.
        
         | conductr wrote:
         | Corporate landlords have large portfolios and more likely
         | experienced the new "risk" that the government allowed people
         | to not pay rent for almost 2 years IIRC. It's hard to
         | objectively try to analyze the situation and ignore that whole
         | snafu.
        
         | ilyt wrote:
         | Right, but you got fucked over by private landlord, that just
         | happened to use some service to coordinate it
         | 
         | The service might be the tool used to perpetrate the problem
         | but regulating corporations won't help much here, if they are
         | gone landlords will find a different way to coordinate
        
           | aaomidi wrote:
           | You're not wrong. We should get rid of landlords and replace
           | them with housing cooperatives.
        
             | googlryas wrote:
             | What's stopping anyone?
        
               | cscurmudgeon wrote:
               | It is always easy to ask others to do the moral thing.
        
               | andrepd wrote:
               | Since credit and money creation is privatised, it is only
               | available to for-profit ventures. Good luck obtaining
               | credit to build an apartment building, if all you have is
               | a contract signed by 100 people promising to take on
               | 1/100th of the debt.
        
               | onlyrealcuzzo wrote:
               | Reverse this - get 100 people to take on construction
               | loans to bud a co-operative to live in, and then
               | refinance after completion. You'll have no problems -
               | except people don't want to take the risk of owning.
        
               | ensignavenger wrote:
               | Most folks aren't interested in housing cooperatives- too
               | much work, they want to be able to move without strings,
               | etc.
        
             | cscurmudgeon wrote:
             | > We should get rid of landlords
             | 
             | How? Please elaborate.
             | 
             | In places that did this, usually a new set of more evil
             | landlords took over after mass killing:
             | 
             | https://en.wikipedia.org/wiki/Land_Reform_Movement_(China)
             | 
             | "Landlords had their land confiscated and they were
             | subjected mass killing by the CCP and former tenants,[2][3]
             | with the estimated death toll ranging from hundreds of
             | thousands to millions.[4][5][6]"
             | 
             | This should probably be required reading for everyone
             | before they comment on housing:
             | 
             | "Housing Breaks People's Brains"
             | 
             | https://www.theatlantic.com/ideas/archive/2022/11/us-
             | housing...
             | 
             | The problem is a simple lack of supply not evil landlords.
             | 
             | Not convinced?
             | 
             | https://www.pewresearch.org/fact-tank/2021/08/02/as-
             | national...
             | 
             | > In fact, fewer than one-fifth of rental properties are
             | owned by for-profit businesses of any kind. Most rental
             | properties - about seven-in-ten - are owned by individuals,
             | who typically own just one or two properties, according to
             | 2018 census data. And landlords have complained about being
             | unable to meet their obligations, such as mortgage
             | payments, property taxes and repair bills, because of a
             | falloff in rent payments.
             | 
             | Edit: And of course, a comment with references is riddled
             | with downvotes with no responses :), so predictable , while
             | the original with an emotional "get rid of a class of
             | people" stays positive.
        
               | andrepd wrote:
               | Nobody is arguing for mass killings of landlords, so your
               | comment is getting the minimum-effort responses it
               | deserves.
        
               | aaomidi wrote:
               | Interesting that you thought I'm suggesting mass killing.
               | 
               | I think honestly you should look into why you thought
               | that's what I'm talking about?
        
               | kelseyfrog wrote:
               | > How? Please elaborate.
               | 
               | Ignoring all other factors, it's quite easy. The
               | landloard-tennant social relation is able to exist
               | because the legal system has a system of laws backed the
               | threat of violence to secure and perpetuate its
               | existence. To deconstruct the social relation as such,
               | one would need to catalog federal, state, and local code
               | to identify which clauses establish houses, apartments,
               | condos, etc as private property and remove them. Voila!
               | the legal construction of landlords no longer exists.
               | without the threat of state violence, landlords cease to
               | become a social category. If this sounds terrible to you,
               | please refer to the first clause of this comment.
        
               | indymike wrote:
               | > The landloard-tennant social relation is able to exist
               | because the legal system has a system of laws backed the
               | threat of violence to secure and perpetuate its
               | existence.
               | 
               | So, if no one can own the property, then high rent will
               | be solved with a state monopoly?
        
               | kelseyfrog wrote:
               | I think it's a little bit of a false dichotomy and a
               | deficit of creativity that the only two conceivable
               | ownership models for housing have to be private or
               | public. There are an infinite number of ways to conceive
               | of housing, than those two. Just try.
        
               | carom wrote:
               | We could simply remove density restrictions. Landlords
               | are not your enemy, and hear me out on this one, single
               | family homes are.
               | 
               | Zoning limits the competition for property to single
               | households. I can compete and win against a lot of single
               | households for land. I could not compete with 10
               | households looking to build apartments. It is illegal to
               | build ten apartments on most lots though, so good for me
               | I guess.
               | 
               | Landlords own land and make it available to others to
               | use. They generally want to build more housing because
               | they like money. They are a strong ally in the fight for
               | more housing (which means cheaper housing). Single family
               | homes are the enemy.
        
               | kelseyfrog wrote:
               | I fundamentally believe that markets do not function
               | correctly for goods with inelastic demand and have a
               | lower bound that when crossed result in a loss of human
               | dignity. I'm not sure there is a way to convince me
               | otherwise. This seems to be a core way in which I process
               | the world and relate to other humans. Changing this would
               | mean that I would relate to people as a means rather than
               | an end and I don't have a way to operate ethically in
               | that world.
        
               | carom wrote:
               | Housing doesn't have inelastic demand though. If the city
               | gets cheaper (+capacity) more people can live in it. As
               | well, if it gets too expensive people are priced out and
               | leave. Ask any state about the Californians moving there.
               | 
               | We are already at the lower bound. We have already lost
               | human dignity. You either need to afford 1k per month or
               | be homeless. This homelessness is to spare them the
               | indignity of living in a 350 sqft efficiency?
               | 
               | Build more housing. Remove parking minimums. Remove
               | minimum unit sizes. End density restrictions. 8 units on
               | every lot.
        
               | kelseyfrog wrote:
               | Housing has plenty of inelastic demand and it's getting
               | worse[1]. This isn't a controversial statement.
               | 
               | 1. https://cepr.org/voxeu/columns/declining-elasticity-
               | us-housi...
        
               | cscurmudgeon wrote:
               | > To deconstruct the social relation as such, one would
               | need to catalog federal, state, and local code to
               | identify which clauses establish houses, apartments,
               | condos, etc as private property and remove them
               | 
               | So if I purchased or built a house with my work, then it
               | is not longer mine?
               | 
               | > If this sounds terrible to you, please refer to the
               | first clause of this comment.
               | 
               | Which is "Ignoring all other factors, it's quite easy"
               | 
               | Exactly, this works only in imagination land.
               | 
               | Thanks for ignoring my links to CCP China where they
               | exactly followed what you prescribed and ended up killing
               | landlords.
               | 
               | Summarizing, there is a problem X (= housing), scientists
               | say solution is Y (= more supply). But common folks say
               | solution is Z (= confiscation of other's labor and
               | property).
               | 
               | Z has been attempted in other societies for X and always
               | resulted in bloodshed. I ask how can this not happen
               | again if we follow Z and I get a response that is just a
               | slightly more detailed plan for Z.
        
               | kelseyfrog wrote:
               | I feel a lot less for landlords than I do for people who
               | die from lack of housing at all. The former could simply
               | choose to not be landlords, the latter cannot simply
               | choose to live in a house.
               | 
               | The question was how to get rid of landlords, I answered
               | that. What I'm attempting to dispel is the myth that
               | landlords are some fundamental aspect of nature or
               | reality - they aren't. Landlords are a product of a
               | specific form of ownership and the legal structure that
               | supports it. Those two things are choices even if they
               | seem to you they aren't.
        
         | ensignavenger wrote:
         | So your landlord priced the unit too high, you are moving to a
         | competitor... sounds like the market working as expected to me?
        
           | SirSavary wrote:
           | No where in the comment did OP say they were moving. They
           | also stated explicitly that competitors were virtually non-
           | existent:
           | 
           | > Practically every other building in the area (downtown
           | Redmond, WA) has increased prices in unison so there is
           | basically 0 competition.
        
         | Brystephor wrote:
         | > These companies have turned areas they operate into upscale
         | meat grinders that lure you with a "welcome" price only to
         | systematically hike up your rent way beyond inflation.
         | 
         | In my experience with downtown Seattle, the high end luxury
         | apartments this rings true.
         | 
         | I had an apartment that I was renting for ~$4k a month and gave
         | me like 1 month free. The building then decided when it was
         | time to renew our lease, I should pay an additional $400 a
         | month. I moved out of that apartment and then they relisted
         | that apartment for $3700/month with a 1 month free offer.
         | 
         | My next apartment was $2300/month. Same thing, 1 month free.
         | Come lease renewal time (1 year later), they said the new rent
         | would be $400 or $500 higher (a 17% or 21% increase). Recently
         | they've decided to give an "exploding offer" where the new rent
         | would only be $2500/month with 8 weeks free if signed by X
         | date.
         | 
         | TLDR: 10%+ rent increases are the norm for my building. I've
         | never actually paid the full listed amount for rent though when
         | you take the concession into consideration.
        
         | jeffbee wrote:
         | Regulation might work but it's complicated and expensive. The
         | best thing you can do against landlords is abundant housing
         | supply. Collusion isn't going to work in practice in the face
         | of 20% local vacancy rates.
        
           | andrepd wrote:
           | Perhaps it wouldn't, given a Georgist LVT.
        
             | carom wrote:
             | LVT benefits landlords because they are properly utilizing
             | their land. They are operating much closer to its potential
             | value than single family homes.
        
       | segmondy wrote:
       | What if RealPage is not an American company? What will DOJ do?
       | Tell them not to serve American customers? Tell American
       | customers not to use it?
        
       | dang wrote:
       | Recent and related:
       | 
       |  _Lawsuit filed against rent-setting software RealPage_ -
       | https://news.ycombinator.com/item?id=33317414 - Oct 2022 (50
       | comments)
       | 
       |  _Rent going up? One company's algorithm could be why_ -
       | https://news.ycombinator.com/item?id=33224502 - Oct 2022 (279
       | comments)
        
       | brookst wrote:
       | I mean the whole RealPage pitch to landlords is that it will help
       | you extract more rent by raising prices to keep up with everyone
       | else who's using RealPage.
        
       | michael1999 wrote:
       | People of the same trade seldom meet together, even for merriment
       | and diversion, but the conversation ends in a conspiracy against
       | the public, or in some contrivance to raise prices.
        
       | davidw wrote:
       | I don't believe that company is a 'force for good', but I don't
       | think they would be able to corner the market in the face of
       | actually abundant housing, either.
       | 
       | It's like we keep looking for the bogeyman that's driving up
       | prices so we don't have to face up to the real problem: our
       | cities' policies that prevent homes from being built, and our
       | neighbors who support them.
       | 
       | If you'd like to join an organized effort to fight for housing,
       | these are good groups:
       | 
       | * https://yimbyaction.org/2021/
       | 
       | * https://welcomingneighbors.us/
        
         | andrepd wrote:
         | There are housing price crises literally all over the world,
         | even in places where restrictive city policies are not an
         | issue.
         | 
         | I'm sure supply constraints make it worse, but the underlying
         | problem is financial in nature: because of making housing a
         | financial asset.
        
           | erik_seaberg wrote:
           | Where is there a housing crisis with no restrictions on
           | construction, and how much construction has been happening
           | there relative to population growth?
           | 
           | Compared to the Bay Area, there are many, many places with
           | vacancies at 80% (Weed, CA) to 99% (Detroit) lower prices.
           | The problem is that everyone wants to live in a few good
           | employment markets with _local_ housing shortages imposed by
           | zoning.
        
           | davidw wrote:
           | The housing crisis is _far_ worse in places where artificial
           | constraints make it so.
           | 
           | In general, the financial side of things drives the
           | constraints, rather than the other way around. If I view my
           | house as an investment, it's in my interest to see a
           | constrained supply so that the value of my house goes up, up,
           | up.
        
         | yieldcrv wrote:
         | I think a productive step would be to force companies like
         | realpage to publish all of their rents and history in real time
         | 
         | And then make a model that shows actual supply and demand in
         | the area
         | 
         | This would be the first time that uniform data would be
         | available thanks to SaaS companies
         | 
         | To skip the legislative issues of categorizing these kind of
         | companies to begin with, it Could come with a settlement offer
         | with DOJ
         | 
         | I think I'll wrote to the DOJ about it
        
       | kactus wrote:
       | I used to use RealPage OneSite when I worked in facility
       | maintenance. As recently as 2018, it was an old clunky webapp
       | that only worked in Internet Explorer.
       | 
       | At the time, I was like, why has no one disrupted them yet? but I
       | later realized building boring, complex software like this is
       | hard, and convincing an org with hundreds of satellite offices to
       | switch is even harder.
        
       | ecommerceguy wrote:
       | And yet crickets out of anyone from the DOJ regarding the massive
       | fraud that is happening everyday in crypto. I have no faith
       | whatsoever in law enforcement anymore. Its all politics and
       | thumbs on scales.
        
         | mjburgess wrote:
         | Part of the problem with crypto is "elite capture", ie., the
         | political class seem to have jumped behind it as with, eg., AI,
         | quantum computing, self-driving cars etc. --- without realising
         | that it's a pyramid-style hype phenomenon rather than a
         | "innovation-style" one.
         | 
         | To defend them, it's really really hard to tell -- many
         | technical people are economically incompetent and have been
         | "captured"; and political people are far from either
         | economically or technically competent.
         | 
         | However, of course, there's also a significant amount of money
         | funnelled from this scam into political pockets. I'd say it's
         | 80% the former, 20% the latter.
         | 
         | In any case, if the gov were to come down against crypto,
         | they'd wipe the entire industry out. That would be a high-risk
         | move from the political elite class _on any ordinary
         | technology_ , let alone one they've been captured to support.
        
           | est31 wrote:
           | SBF was the second biggest individual donor to Biden's
           | election campaign, and he donated 8 times as much in the 2022
           | midterms to democrats. Newspapers close to democrats have
           | made very positive pieces about him and his scam. Now after
           | the collapse, the government is still after him. He will
           | probably meet the fate of most upper class blue collar
           | criminals, with low security prison for a low single digit
           | number of years.
           | 
           | The political class protects you if you bribe them, and you
           | can get really rich thanks to such cooperations. They will
           | defend your shady real estate deal, your NIMBY-ism, your neo
           | feudal constitutional amendments from 1978, or pro-corporate
           | legislation. But this has limits, e.g. when you appear in
           | newspapers as someone who has scammed tens of thousands.
           | 
           | I do think however that a thing such as "good" (in the sense
           | of quality, not in the sense of impact on the world) elite
           | capture exists, even for crypto currencies. Ultimately we
           | might end up with one or two private crypto currencies that
           | have managed to bribe the elites of the gun owning apparatus
           | well, and then that apparatus will use the guns to eliminate
           | the crypto currencies that didn't manage to do such elite
           | capture. We might end up with privatized, state sanctioned
           | currencies, just as large parts of the banking system are
           | private, or how certain parts of the elite got first row
           | access to massive Fed loans while the masses had nothing. In
           | the end, elite captured crypto currencies will just be the
           | people with guns deciding to use a different mechanism to
           | distribute the goods the guns are protecting, instead of
           | being the innovation the pro-crypto people have been dreaming
           | about that deprecates the need for people with guns.
        
             | mjburgess wrote:
             | Sure, but there's also a single-dotted-line from the crypto
             | libertarian "brogrammer" class to the republican party
             | elite.
             | 
             | I have the sense that a democratic legislature (Warren, et
             | al.) are a lot more hostile to scams perpetrated against
             | the naive. It is why, eg., sports betting failed to pass in
             | California.
             | 
             | One thing which often goes missing, somehow, in the
             | discussion of Trump is he's a scam artist and perpetrator
             | of old-fashioned pyramids. Not in some political muckraking
             | kinda way, but in a has-gone-to-court-and-been-found-out
             | kinda way.
             | 
             | My point being that SBT's donations should not be
             | equivocated with endemic scam-artistry in certain segements
             | of the elite -- which is a far more serious matter .
        
               | est31 wrote:
               | You do have a point. SBF might be an interesting case
               | because he tried to get protection from democrats even
               | though republicans might have been more receptive to him.
        
         | michael1999 wrote:
         | TBH - I consider that people in crypto opted out of the normal
         | system of rules, and expecting the taxpayer to spend zillions
         | of dollars investigating offshore entities conducting obvious
         | ponzis is a waste of money. Crypto == lawless, and demanding
         | help from the fiat system after the fact is embarassing.
        
         | farseer wrote:
         | Rent is unavoidable and essential to a dignified life. Crypto
         | is for people with some spare cash who want to buy a thousand
         | lottery tickets. The priorities of DOJ are correct. They are
         | there to save you from the greed of others, not from your own.
        
       | roflyear wrote:
       | Why is this even needed? It is easy to look at the market and
       | also to just look at CPI numbers and boost your rent.
        
       | d23 wrote:
       | Is it just me or are there a lot more stories about the DOJ and
       | FTC cracking down on abuse by actual big players lately?
        
         | tiahura wrote:
         | Just you.
         | 
         | The stories, like this one, are about the the DOJ launching an
         | investigation.
         | 
         | Wake me when they win the trial and survive appeal, or even get
         | meaningful concessions in a consent decree.
        
       | anonym29 wrote:
       | Hmmmm... I wonder whether they will find any conclusive evidence
       | that the platform which promises to help landlords extract every
       | penny possible from their properties, using data from surrounding
       | properties, that was being used by practically every major
       | apartment complex, was possibly being used to raise rents... and
       | whether this highly complex product with their proprietary
       | algorithm could've had a feedback loop on it's own raised prices.
       | Such a difficult case to figure out... /s
        
       | puffoflogic wrote:
       | This is a literal conspiracy theory, but since it plays to the
       | right set of biases I guess it's cool on HN.
        
         | johnhenry wrote:
         | This fits the strict definition of "conspiracy theory" -- a
         | theory that a group of people are working together in secret
         | (or "conspiring") to achieve a specific goal.
         | 
         | You're attempting to apply a connotation -- that the theory is
         | unfounded -- that is usually associated with the term, but not
         | definitive. This is particularly troubling in the face of the
         | evidence presented.
        
           | voidwtf wrote:
           | I believe that, in modern English parlance, the idea that the
           | theory is unfounded is the primary meaning. I doubt the
           | strict definition was ever considered here.
        
         | Step888 wrote:
         | https://www.realpage.com/lp/harness-data-to-drive-results/
        
         | voidwtf wrote:
         | Any further explanation how it's conspiracy theory?
         | 
         | Those of us that rent, or have rented, have direct experience
         | with rent hikes far exceeding cost-of-living increases and/or
         | inflation. I am in a much better situation now, but previously
         | rented a location that went from 740/mo to 1100/mo over the
         | course of two years. This was pre-pandemic in 2012 - 2014 and
         | coincided with similar rent increases across the city.
        
           | puffoflogic wrote:
           | It is a theory alleging a conspiracy. What part of that needs
           | further explanation?
        
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