I’m more concerned how both the vendor and the landlords are dealing with the feedback loop when the inevitable error occurs.
And as far as I’m concerned, I would like the government to mandate data transparency and create the data clearinghouse to facilitate it. Requires APIs be used and open protocols. That’s how we “increase competition and drive down costs for the consumer”. Not just for rents, for insurance, services, and products.
Basically algorithms would lower prices if there was excess inventory, but landlords figured out they would stop doing so if they only list a subset of apartments. Obviously shortages do occur, but you often see consistent prices even when bursts of new housing come online with a new apartment complex.
What we should do is mandate that all rent prices be published, and then someone can build a browser extension or website that shows the average and historical prices so renters can quickly spot overpriced rentals.
Not when there’s a glut of housing. Undercutting by a new complex results in those same algorithms lowering prices and people aren’t going to move without any incentives, so you end up with a largely vacant complex...
Don’t get me wrong rents aren’t completely uncoupled from reality. But they rarely fall because renting 80% of your stock at historic prices is better than a price war resulting in you still renting 80% of your stock at new lower prices.
> spot overpriced rentals
When prices are manipulated all you’re going to see is the manipulated prices.
A better option might be a tax on unlisted properties, but that’s harder to enforce as renovations after someone leaves isn’t a fixed time period.