If it’s actually true that building more homes makes the rent go down then it’s also true that intentionally keeping units vacant will increase profits

If you pay any attention to online housing discourse you’ve heard repeatedly that we can eliminate homelessness by just building more houses. The most idiotic versions of this theory rely on the (putatively obvious) idea that if the demand for a good is fixed then the price is roughly inversely proportional to the supply. My personal feeling about all theories like this is that they are framing phenomena created by state violence as if they were the result of universal natural laws, but that doesn’t mean we can’t learn something from them.

In particular we can learn that this supply/price assumption implies that under apparently normal market conditions landlords with more than a few units can maximize their profit by intentionally keeping apartments vacant to artificially restrict supply. If it’s actually true that increasing housing supply functionally decreases housing costs then all else being equal it will lead to house-hoarding. This appears to be a contradiction in the theory.
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