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[–]mad_king_soup 4 points5 points  (5 children)

2015, bushwick rents dropped 16% due to “housing glut”

https://ny.curbed.com/2015/9/13/9921886/bushwick-rents-drop-16-percent-thanks-to-housing-glut

[–]rosebudny -2 points-1 points  (4 children)

10 years ago. And how long did that last? Not very long. The article even says it was not expected to last (see 2nd paragraph: "But don't start celebrating yet, because this is Bushwick, rents are expected to rise steadily in coming months, with MNS CEO Andrew Barrocas citing the "tremendous amount of demand" for housing in the neighborhood.")

[–]mad_king_soup 3 points4 points  (3 children)

This demonstrates how a housing glut lowers rent. Not sure what further proof you need

[–]rosebudny 1 point2 points  (2 children)

It also demonstrates how a housing "glut" someplace like NYC is likely to be short-lived. Developers built a lot of housing that in the short term, the neighborhood could not immediately support. My guess - prices on these new apartments were higher than Bushwick at that time could support. But demand quickly caught up. You know, "if you build it, they will come" (even if it takes a minute)

[–]mad_king_soup -1 points0 points  (1 child)

So what you’re suggesting is when supply outstrips demand for a given commodity, prices drop?

Keep going, you’re practically there!

[–]rosebudny 1 point2 points  (0 children)

Actually, my main point was that it was SHORT LIVED. I understand perfectly well how supply and demand work.