Because the old market price was $4 due to there only being 20 houses that could freely move on price.
If there's 100 houses there will more supply and the market rate will drop. Basically market rent is simply the price at the available margin.
If there's 100 houses there will more supply and the market rate will drop. Basically market rent is simply the price at the available margin.
There's probably not 120 people, and 100 houses. I think it's 500 people and 100 houses. Higher rent has driven a lot of people out who would have preferred to stay but couldn't because of the price.
Rent control is the only thing keeping some of them here.
- written from my cold, moldy dying home in the Sunset.