I'm coming around to regarding RealPage as a neutral information system, but when they're operating in a supply constricted market they'll naturally help property owners keep rents elevated. Their data sharing allows landlords to maximize rents without engaging in experimental pricing strategies that could result in loss of tenants to cheaper competitors who have the same quality units.
RealPage would also be of considerable value in a robust supply environment because they would help owners establish minimum rents and design incentive strategies for keeping tenants. It's nice to imagine that type of situation arising from expanded unit construction.
I started reading this article with the pre-conception that RealPage is leading to collusion by sharing data amongst landlords. (I now own, and have long owned rental housing). You make a great case that this not price fixing, but price discovery. That is illuminating. Thanks!
I also agree that the general reason housing is both expensive and in short supply is "No!".
The previous post that I link to here has more detail. I tried to think through the equilibrium of where the colluding market would settle, and I can't find a reasonable one. I don't think anyone who claims it works through excess vacancies has thought very hard about either the conceptual or practical problems with that claim.
I'm coming around to regarding RealPage as a neutral information system, but when they're operating in a supply constricted market they'll naturally help property owners keep rents elevated. Their data sharing allows landlords to maximize rents without engaging in experimental pricing strategies that could result in loss of tenants to cheaper competitors who have the same quality units.
RealPage would also be of considerable value in a robust supply environment because they would help owners establish minimum rents and design incentive strategies for keeping tenants. It's nice to imagine that type of situation arising from expanded unit construction.
I started reading this article with the pre-conception that RealPage is leading to collusion by sharing data amongst landlords. (I now own, and have long owned rental housing). You make a great case that this not price fixing, but price discovery. That is illuminating. Thanks!
I also agree that the general reason housing is both expensive and in short supply is "No!".
Thank you, Dartz!
The previous post that I link to here has more detail. I tried to think through the equilibrium of where the colluding market would settle, and I can't find a reasonable one. I don't think anyone who claims it works through excess vacancies has thought very hard about either the conceptual or practical problems with that claim.