these cities build building after building of STEM techbro grad catnip $2800/month apartments and $700k condos and then it never lowers
The problem with the trickle down housing theory is that just because people can pay insane luxury rent doesn't mean that they want to. It's plainly obvious that most of these new builds are cheap as shit despite the luxury label, they're often built on marginal, flood project land, and lots of high earners are very, very stingy. They definitely aren't "catnip" for STEMbros, rather I see it as another example of "forced demand" - i.e. only overpriced garbage is all that is offered.
I'd argue the reason it never lowers is more that these luxury units set a floor, not a ceiling for all other apartments. Any amenities they offer aren't valued by most people all that much, so effectively a bunch of overpriced new builds means exisiting landlords can jack up rent.
The problem with the trickle down housing theory is that just because people can pay insane luxury rent doesn't mean that they want to. It's plainly obvious that most of these new builds are cheap as shit despite the luxury label, they're often built on marginal, flood project land, and lots of high earners are very, very stingy. They definitely aren't "catnip" for STEMbros, rather I see it as another example of "forced demand" - i.e. only overpriced garbage is all that is offered.
I'd argue the reason it never lowers is more that these luxury units set a floor, not a ceiling for all other apartments. Any amenities they offer aren't valued by most people all that much, so effectively a bunch of overpriced new builds means exisiting landlords can jack up rent.