QUESTION: Is it just me, or is the supply of student housing in Waterloo expanding
exponentially, and the price is increasing as well? Did someone break
the rules of supply-demand since I last took econ?
New housing can set prices however high they like. If people are willing to pay it, that drives the price of all housing up... prices are sticky, housing costs basically never go down.
No. It looks very bad to lower prices, but as you may notice many landlords are giving other incentives to sign a lease. Some are giving upfront $$$ to sign a lease and when the rest of the buildings are finished I would presume that the prices may fall or stay flat, especially considering that enrollment continues to rise.
UW itself is growing pretty quickly, so student housing must as well.
ReplyDeleteLaurier has been really increasing their student enrolment as well.
ReplyDelete+ increasing demand of housing in general as KW continues to urbanize
ReplyDeleteNew housing can set prices however high they like. If people are willing to pay it, that drives the price of all housing up... prices are sticky, housing costs basically never go down.
ReplyDeleteNo. It looks very bad to lower prices, but as you may notice many landlords are giving other incentives to sign a lease. Some are giving upfront $$$ to sign a lease and when the rest of the buildings are finished I would presume that the prices may fall or stay flat, especially considering that enrollment continues to rise.
ReplyDelete