Apartment supply and demand - to rental markets at high...

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The law of demand is definatly applying to buyer's decision at all times. If price of a commodity is reduced the quantity of demand will increase., and on the other hand if price is increased demand will fall.The simulation scenario one takes us through the concepts of the demand curve, supply curve and equilibrium. In order to bring the vacancy rate down to the desired level of fifteen percent the rental rate will be lowered significantly. At the higher rental rate more apartments would be available for rent while at the lower rate less would be made available,being that the profits from the rentals would be much lower. the in places like Florida and Southern California. Some of those units are now returning
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Unformatted text preview: to rental markets at high prices as owners struggle to sell them. In the quarter ended Sept. 30, the average advertised rent reached $978, up 3.9 percent over the year-ago period, according to an analysis of 75 markets by real estate research firm Reis Inc. in New York. Some of the biggest increases were seen in Florida and Southern California. Meanwhile, the nationwide vacancy rate for rental housing dropped to 5.4 percent during the quarter from 6.7 percent in the same period of 2004. "The market is strong enough that landlords are able to reduce the concessions that they're offering to new tenants," said Sam Chandan, Reis' chief economist. "Even more important, vacancies continue to fall."...
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This note was uploaded on 03/19/2010 for the course ECONOMICS GM545 taught by Professor Hamidnoorani during the Spring '09 term at Keller Graduate School of Management.

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