Comment by kjshsh123
2 days ago
LVT doesn't change the profit maximizing rent of apartments, or the quantity supplied.
You can feel free to solve the profit maximization problem of the apartment owner if you want.
2 days ago
LVT doesn't change the profit maximizing rent of apartments, or the quantity supplied.
You can feel free to solve the profit maximization problem of the apartment owner if you want.
if there are apartments on the margin of profitability, the cash outlay of LVT will have impact in either landlords quitting the market or deferring/stopping maintenance and such
Nope. If it was most profitable to quit the market or stop maintenance before LVT, it would be most profitable after.
A conversation with an LLM where you paste this exchange into the context is likely to clear up the reasons for your misconception.