The problem is not simply the use of algorithms. The problem is that the algorithm is coordinating prices for a large percentage of rented properties. It's effectively a cartel.
Housing is a necessity. Demand for which is inelastic. The price will be paid regardless, via rent or purchase. And purchase is out of reach or unmanageable for many. Leaving rent as their only option.
Also, in no particular order and not limited to:
- Single or multi-year contracts.
- Minimum space requirements for family size
- Local social ties, extended family and friends
- Dependency or ties to local services, groups, business
- “Keeping up with Joneses”
- Moving is a PITA
- Comfort, familiarity, nostalgia
- Work requirements and industry connections
If you have another appropriate or even better comparison to offer, please do.
It’s not rapidly responsive like subscribers of netflix, but it’s fairly elastic over the long term.
>> If tenants are still moving inspite of the high prices, then the price is probably right.
it’d probably be best to focus on housing’s relative inelasticity as compared to other goods where such a claim might actually be quite true.