Rent

I don’t really get what you mean by this.

 

It’s lending. Did you get the same rate for your car as everyone else? House? No, of course not.

But disparate impact is created when certain people get rates different than others, and some lenders will risk the FDIC hammering them on it, and some won’t.

 

I’m saying that they’re taking demand for an apartment in the month of August and charging me for that demand in September, October, November, December, etc, even when that demand doesn’t exist in those months.

And I’m even struggling to agree that the demand is higher in summer, to be honest. There are no more, no less apartments available now than in August. Seems like if demand was higher in summer, there would be less apartments available, no?

 

Apartment complexes are a fixed resource. The demand of all the others influences the price you get.

You don’t have to see a single anything for those other forces to factor in to your cost.

 

There are fewer available. Last month there were two; yours and this other one.

Now yours is taken, due to your summer demand.

 

So how can you prove to me that demand for apartments in downtown Baltimore is higher during summer months?

 

You? Probably impossible.

Most people:

 

Some get rented and others open up. There may be a few unit difference one way or the other, but in a complex with 700 units, one less or one more unit doesn’t make a difference.

 

That doesn’t prove what I asked you to prove.

 

When do recent grads move into apartments in big cities? Mostly May-August. And then for a couple of years they’re moving between apartments 12 ish months after their lease began.

I won’t pretend to know the dynamics in Baltimore but this seems straightforward enough in the places I’ve been.

 

The moment you signed the lease you agreed to a rentx15 debt. You paying it over 15 months rather than all at once isn't really relevant.

 

It absolutely does. Both things.

When demand is high, price is high. If you paid a high price, demand was therefore high.

The reason they wanted you to pay more to extend your time, is because they understand this concept, and know that you do not.

Because if you are on a 12 month contract, and came in on high demand, then you will renew or leave on high demand, and the likelihood they can put someone in your spot is higher.

For every month after your 12 months additional on your lease, is how many cycles of non high demand premium that they have to chew through until they can offer it again for high demand prices.

If you shift those, by extending your lease, you alter the period. Not just for you, though, for everyone. Because I have to offer the same extension to everyone.

And I don’t want to extend out of a high demand price that might be coming up, simply because you never took economics.

 

It absolutely does.

 

Demand is absolutely higher in the summer hosing prices are generally highest from May through July because that's the time the resources are the most stretched ie demand.

 

15 months means your lease will end in the winter.

If you do decide to look around, you are just looking to see if your monthly savings would be greater than the penalty and the pain of moving again.

 

I don't get how this is controversial. Why would they just lower rents for the hell of it in the winter? Obviously it is because demand is less.

 

People are paying more for a studio where I live then I paid for a 2 bedroom 8 years ago 3 blocks from the beach.

 

Have a friend that just put up a 1 br/1 ba condo up for sale downtown nashville, and not in one of the fancy new highrises, for $500 sq/ft. Bought 10 years ago at $80.

 

How do they afford it?

 

lots of students, many from china, funded by mommy and daddy. job market is strong here too.