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0 pointsestearum9d ago0 comments

Want to make a bet on what happens to rents in South Padre Island, TX (near SpaceX's Starbase) in the next 6 months?

Want to make a bet on what happens to rents in San Francisco after Anthropic's or OpenAI's rents after they IPO?

There's no reason either event should decrease supply or increase demand, correct? So prices should be stable?

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2 comments · 1 top-level

shlant9d ago· 1 in thread

so you don't have any evidence? you are just hoping there will be evidence in the future?

Separately - are you against minimum wage increases as a way to make things more affordable?

estearumOP9d ago

Huh? The same dynamic is evident in literally every single leap in productivity and local wages in human history.

Surely if I'm wrong, you're willing to bet on it, correct? Easy money for you? Of course you won't because you obviously know this dynamic is real lmao

https://www.nber.org/papers/w33576

Yes, minimum wage as a way to make things more affordable is mostly a bad idea. https://www.sciencedirect.com/science/article/abs/pii/S00941...

> Increases in state minimum wages significantly reduce the incidence of renters defaulting on their lease contracts by 1.7 percentage points over three months, relative to similar renters who did not experience an increase in the minimum wage. This represents 10.6% fewer monthly defaults. However, this effect slowly decreases over time as landlords react to wage increases by increasing rents.

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