Then why didn't another developer open apartments in that area for a fraction of the price?
See, if three people are colluding to hold prices up, then 4th or 5th will see an opportunity to undercut their prices and make huge profits.
This is why in a free-market Capitalist system, the market will always cater to the widest base of customers at the lowest price point. This is how it is in any market.
That's why for every $40 a plate steakhouse, there are 50 $10 low cost food joints.
That's why for every luxury car sale, they sell a thousand Toyotas and Hondas.
So back to this RealPage. For every group of landlords that use RealPage there are millions that don't. If the RealPage prices were that much higher than the real market, then everyone would be undercutting them so badly, that they wouldn't be able to rent anything.
This is what would happen in any free-market like we have seen.
So this means there has to be a reason that prices are going up, that isn't due to the free market. The problem could be government, or it could be something else.
So what could be the cause of rent prices going up across Arizona?
The U.S. Census tracks where Americans are moving to and from. Here's where Californians are moving by the thousands.
www.fox10phoenix.com
The number of former Californians who became Texans dropped slightly last year, but some of that slack was picked up by Arizona and Florida.
www.azcentral.com
The reality is Arizona has seen a massive influx of people moving there from other states.
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And one of the largest is California.
The point here is that people are trying to find someone to blame for rent prices going up, and looking at landlords and algorithms and collusion and all this stuff.
It's a lot simpler than that.
Right now Arizona has a huge influx of people escaping from the hell hole that is California.
The endless rent control, regulations, crime, and stupidity of California, is driving migration to Arizona, and the market can't keep up.
Demand for housing is out pacing the supply. As long as the government doesn't screw up the market, eventually construction will catch up to demand.
The worst thing they can do, is adopt the same policies that made California expensive, but trying to regulate RealPage.