Posted by EditorDavid from the fix-is-in dept.
“Some corporate landlords collude with each other to set artificially high rental prices, often using algorithms and price-fixing software to do it.”
That’s a U.S. presidential candidate, speaking yesterday in North Carolina to warn that the practice “is anticompetitive, and it drives up costs. I will fight for a law that cracks down on these practices.”
Ironically, it’s a problem caused by technology that’s impacting some of America’s major tech-industry cities. Investopedia reports: Harris proposed a slate of policies aimed at curbing the high cost of housing, which many economists have traced to a long-standing shortage. The affordability situation for both renters and first-time buyers took a turn for the worse starting in 2020 when home prices and rents rose sharply. Harris’s plan called for the construction of 3 million new houses to close the gap between how many homes exist in the country, and how many are needed, with the aim of evening out supply and demand and putting downward pressure on prices. This would be accomplished by offering tax incentives to builders for constructing starter homes, by funding local construction, and by cutting bureaucratic red tape that slows down construction projects. Harris would also help buyers out directly, through the first-time buyer credit.
For renters, Harris said she would crack down on companies that own many apartments, who she said have “colluded” to raise rents using pricing algorithms. She also called for a law blocking large investors from buying houses to rent out, a practice she said was driving up prices by competing with individual private buyers. Harris’s focus on corporate crackdowns extended to the food business, where she called for a “federal ban on price gouging on food and groceries,” without going into specifics about what exact behavior the ban would target.
Investopedia reminds readers that the executive branch is just one of three branches of the U.S. government: Should Harris win the 2024 election and become president, her ideas are still not guaranteed to be implemented, since many would require the support of Congress. Lawmakers are currently divided with Republicans controlling the House of Representatives and Democrats in control of the Senate.
“I got everybody to pay up front…then I blew up their planet.” “Now why didn’t I think of that?” — Post Bros. Comics
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