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JCwhatimsayin OP t1_ixuo3yy wrote

Reply to comment by Miringanes in Algorithmic rent setting service under investigation by DOJ for collusion with landlords by JCwhatimsayin

Yeah, these things occupy different tiers in our hierarchy of needs. But dynamic pricing is one thing. The fees go down when there's slack demand. Here the allegation is that the providers are setting minimums in a roundabout way. It would be like if the golf courses in the area all agreed to never charge less than $200.

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objectimpermanence t1_ixz9vh7 wrote

> The fees go down when there’s slack demand. Here the allegation is that the providers are setting minimums in a roundabout way.

But luxury apartment rents did plummet during COVID. That’s a pretty clear example of the dynamic pricing models responding to a drop in demand.

Rents are up now because so many people are moving back to the city and inventory levels are low again.

At the end of the day, it’s the low vacancy rate that enables landlords to charge higher rents, not the pricing software alone.

For example, most large apartment complexes in Houston use dynamic pricing. But Houston has a relatively high rental vacancy rate because they build new housing left and right whenever there’s a surge in demand. As a result, apartments there are relatively affordable despite using the same software that landlords use here.

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