Categories: Market

Imperfect Competition in Rental Market: Understanding Forex Trading

The rental market is an example of imperfect competition, due to its high degree of product differentiation. Due to the size, location, and other unique characteristics of rental housing, no two rental units are exactly alike. This means that supply and demand are not always determined by price alone. Property owners may rely on other factors to set their rental prices, such as local rental market conditions, how long a unit has been on the market, and the quality of the features and services offered. Additionally, rental prices may be impacted by tenant creditworthiness and other non-market forces. As a result, rental markets tend to be slow to adjust to changes in demand, making it difficult for renters to easily compare prices and select a home that they truly love.

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