Rent Prices, Profits Soar

Those bastard, evil rental property owners. They're dialing up their prices, people are paying, and profits are soaring. During the times when real estate sales soard, so many people tried to buy that the rental market collapsed precisely as the purchasing market exploded. Prices fell so much for renting that in many markets it made more sense financially to rent rather than to buy. Do you suppose, Nadir, that during the time of rental price depression, that many investors bothered to create new rental properties? No, they didn't; investors put all their money into not only building new for-sale space, but converting rental property into condos.

Nadir, you probably cheered as rental owners endured low profits. But now consumers have changed their mind: they want to rent instead of buying, waiting to see how low the for-sale prices are going to fall. But these consumers now find a SHORTAGE of rental space. Consequently rental prices have soared. Those evil landloards are making more profits! One certain new consequence: investers are going to start building more rental space.

Ah, capitalism: free people trading freely, standardizing the social value of their labors with a monetary system, solving their own problems. Should we be any more angry at petro company officials than landlords? Or should we simply be glad that the profit system ensures ready, reliable supplies of petro and real estate?

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