Don’t Sweat the Astronomical Rent; It’s Just Supply and Demand
First of all, let me say thank you to your response to my story about the incredibly overpriced rental property in this area. The story seems to have struck a chord with you. A great many people – people who are my friends and people whom I have never met responded to that story.
Several people took the time to pass on information about rental property to me, and I was very moved by the outpouring. Judging from the overall response, it would seem that, for the most part, we are of one accord that rent is just too high in Lake Charles, but I’m not going to get back on that bandwagon.
Now, while most everyone who responded to the story agreed with me, I did have one person who did not agree. Here is what they had to say about these rental prices:
Supply and demand will dictate the rental prices. If these places you mentioned are priced outside what the market will accept, the owners will either reduce their asking price or maintain a vacant rental. If on the other hand, the current market allows them to ask those prices and they get it, I don’t see the problem.
First of all, let me congratulate you on your excellent understanding of the law of supply and demand. I’ll bet your mama was real proud of you the day you brought home a gold star for knowing that, but you have only addressed a small part of that equation. You see, you forgot to factor in something very important: the human element.
Judging from your callous, condescending response, you are of the mind that the people who were selling water to flood victims for $100 a bottle were just practicing the law of supply and demand. I suppose you think that Martin Shkreli was justified in increasing the price of a life-saving drug from $13.50 to $750.00. What are people who can’t afford those prices supposed to do? I guess those who can’t afford the drug just need to die “and decrease the surplus population.” After all, baby, it’s the law of supply and demand.
You also left out the human element when you explained that, if the market won’t bear it, prices would go down. In other words, for all you folks who can’t afford to live here, all you have to do is remain homeless a few more months and wait for the prices to drop. What an excellent solution! I’m sure all the people who are caught up in this feel much better knowing that their situation can be explained. “It’s the law of supply and demand.” Why, thank you for telling me that. I feel much better now.
You see, while you are well versed on the law of supply and demand, you are forgetting another law. One that supersedes the law of supply and demand. That law goes something like this:
Do unto others as you would have them do unto you
I’ll be happy to explain it to you if you don’t get it.