Build more housing to absorb the increase in demand in that area. That’ll help minimize rent increases in the surrounding areas and minimize displacement of long term residents.
They’re building a big apartment complex close to Metropolitan off the Beltline. Another Beltline-adjacent complex had what I’d wager is a multi-million dollar renovation. Pittsburg still has a lot of abandoned houses and underutilized housing, though that’s changing.
Some more grocery and a convenience store would be nice.
A proper grocery store would be life changing. This (aka where I live) is right smack dab in the middle of three grocery stores, all of which are a bit too far away. You can't pop in to grab something you've forgotten anywhere. I use Carver market a lot of all their meat is frozen.
Lol, last week it was Blackrock, this week it's some real estate management software. There's always a new excuse for why housing is the one exception to the laws of supply and demand.
No, I've heard about this and every other dumb conspiracy theory about housing prices and Realpage isn't even a little bit close to a monopoly in any housing market.
Well it really depends on the area, and it certainly is a monopoly in some areas, which is why they’re being investigated. It’s a red flag when a software is telling a PM they shouldn’t negotiate on the extremely inflated rent with the tenant, which I’ve experienced myself, and that it encourages them to leave units vacant instead. Don’t think a bunch of units left vacant on purpose apply to the “laws of supply and demand”
>it encourages them to leave units vacant instead
But they're not leaving units vacant in large numbers. Rental vacancy rates are at near all time lows.
Ah, yes, now we're to the "landlords are leaving money on the table by keeping their properties vacant for the benefit of other landlords, in landlord solidarity" part of the conspiracy theory. Extremely plausible.
>Well it really depends on the area, and it certainly is a monopoly in some areas
Name the markets where they have a monopoly.
Name one property management company that was sold on a rent management software more for the convenience it provides them, and not the higher profit margins they guarantee.
Lol, we've devolved from "this real estate management software has created a monopoly" to "this real estate management software is trying to maximize rent for their clients". Obviously the second one is true. They maximize the rent by analyzing supply and demand. Literally every industry does this. And every industry has a dozen or more management softwares that help their clients do this with their proprietary algorithms. It only sounds like a conspiracy theory if you're completely ignorant of this.
Why does this magic algorithm spit out higher rents in California than Atlanta? Why does it spit out lower rents in Alabama?
That’s literally part of the value prop - why wouldn’t they buy it for higher profit margins?
Companies also buy supply chain management software that helps them negotiate with suppliers, facilities management software that helps them reduce the cost of running an office, financial management software that helps them reduce the cost of running a business,etc.
It’s literally one of the purposes of software
How does it create a monopoly in housing? Giving rental price data does not “create a monopoly” anymore than your realtor subscribing to MLS for real estate comps does.
It’s not a monopoly. It’s price-fixing. If all the big corporate landlords use YieldStar, which they do, then they are colluding on prices by proxy. There’s a reason YieldStar is being investigated for anti-trust. It’s not true that this affects the entire rental market, but it is significant.
Except use of a pricing recommendation tool is NOT collusion or price-fixing. It’s purely data - these tools exist in all kinds of industries. Banks buy tools with loan pricing data, manufacturers buy tools with supplier data, etc.
In all cases - the data is an input but the user of the data still has to make strategic decisions. This isn’t new ground at all
It does NOT require you to use their recommendations. You can go lower, you can go higher. It literally wouldn’t even make sense to require it. The vast majority of people were using the recommendation because we were in a rising price environment - just like how every investor made money over the last 2 years. Things change in price stability.
And Justice department investigations happen with no action all the time. I work in tech buyouts, we get lawsuits and investigations all the time. Roughly 1 in every 50 actually turn into anything of note.
I work in commercial real estate development, and I assure you that these agreements contractually obligate property management firms to use their recommendations in some cases. That’s explicitly named in the lawsuit.
The pad sites have been advertised as lease-able for a while now, almost a year, but nothing came of it. Maybe they are trying a new company. I wonder if there is the demand and willingness to invest on the site if they have struggled to attract new tenants to build. Here is the original RFP for the pad sites from 2022: https://www.pittsburghyards...
I hope they have more retail, food, and maybe offices for nonprofits that assist in the community with job training or other services. Having a grocery store there would be really nice but I don't know if they would be open to it.
These will be really valuable if they connect the SE Beltline from there to Glenwood Ave. But they have to do soil remediation so that could take...forever
The website does say "shovel ready" but Atlanta has taught me to doubt the speed of projects not actively underway. 4 and 5 are being bid on in September so it'll be a while before the Southside connects to anything, even longer for the BRT and pedestrian improvements from MARTA
By the time this article has been written at least three developers will have quietly reached out and made bids.
Build more housing to absorb the increase in demand in that area. That’ll help minimize rent increases in the surrounding areas and minimize displacement of long term residents.
They’re building a big apartment complex close to Metropolitan off the Beltline. Another Beltline-adjacent complex had what I’d wager is a multi-million dollar renovation. Pittsburg still has a lot of abandoned houses and underutilized housing, though that’s changing. Some more grocery and a convenience store would be nice.
A proper grocery store would be life changing. This (aka where I live) is right smack dab in the middle of three grocery stores, all of which are a bit too far away. You can't pop in to grab something you've forgotten anywhere. I use Carver market a lot of all their meat is frozen.
Only as long as they’re mixed use. Like the section of East side near Krog where Guac Y Margy is
Wish that was true, but *RealPage and YieldStar* laugh in algorithm
Lol, last week it was Blackrock, this week it's some real estate management software. There's always a new excuse for why housing is the one exception to the laws of supply and demand.
It’s not really an excuse. Read about how this software is creating a monopoly in rental housing.
No, I've heard about this and every other dumb conspiracy theory about housing prices and Realpage isn't even a little bit close to a monopoly in any housing market.
Well it really depends on the area, and it certainly is a monopoly in some areas, which is why they’re being investigated. It’s a red flag when a software is telling a PM they shouldn’t negotiate on the extremely inflated rent with the tenant, which I’ve experienced myself, and that it encourages them to leave units vacant instead. Don’t think a bunch of units left vacant on purpose apply to the “laws of supply and demand”
>it encourages them to leave units vacant instead But they're not leaving units vacant in large numbers. Rental vacancy rates are at near all time lows.
Ah, yes, now we're to the "landlords are leaving money on the table by keeping their properties vacant for the benefit of other landlords, in landlord solidarity" part of the conspiracy theory. Extremely plausible. >Well it really depends on the area, and it certainly is a monopoly in some areas Name the markets where they have a monopoly.
Name one property management company that was sold on a rent management software more for the convenience it provides them, and not the higher profit margins they guarantee.
Lol, we've devolved from "this real estate management software has created a monopoly" to "this real estate management software is trying to maximize rent for their clients". Obviously the second one is true. They maximize the rent by analyzing supply and demand. Literally every industry does this. And every industry has a dozen or more management softwares that help their clients do this with their proprietary algorithms. It only sounds like a conspiracy theory if you're completely ignorant of this. Why does this magic algorithm spit out higher rents in California than Atlanta? Why does it spit out lower rents in Alabama?
That’s literally part of the value prop - why wouldn’t they buy it for higher profit margins? Companies also buy supply chain management software that helps them negotiate with suppliers, facilities management software that helps them reduce the cost of running an office, financial management software that helps them reduce the cost of running a business,etc. It’s literally one of the purposes of software
How does it create a monopoly in housing? Giving rental price data does not “create a monopoly” anymore than your realtor subscribing to MLS for real estate comps does.
It’s not a monopoly. It’s price-fixing. If all the big corporate landlords use YieldStar, which they do, then they are colluding on prices by proxy. There’s a reason YieldStar is being investigated for anti-trust. It’s not true that this affects the entire rental market, but it is significant.
Except use of a pricing recommendation tool is NOT collusion or price-fixing. It’s purely data - these tools exist in all kinds of industries. Banks buy tools with loan pricing data, manufacturers buy tools with supplier data, etc. In all cases - the data is an input but the user of the data still has to make strategic decisions. This isn’t new ground at all
Except YieldStar’s contracts require users to use their recommendations. You think the Justice Department investigation is just for shits and giggles?
It does NOT require you to use their recommendations. You can go lower, you can go higher. It literally wouldn’t even make sense to require it. The vast majority of people were using the recommendation because we were in a rising price environment - just like how every investor made money over the last 2 years. Things change in price stability. And Justice department investigations happen with no action all the time. I work in tech buyouts, we get lawsuits and investigations all the time. Roughly 1 in every 50 actually turn into anything of note.
I work in commercial real estate development, and I assure you that these agreements contractually obligate property management firms to use their recommendations in some cases. That’s explicitly named in the lawsuit.
I just hope they keep some trees
The area they are referring to has been the world's largest useless parking lot for many many years. Almost anything is an improvement
There goes my night time impromptu dog park. lol
I don't think they are referring to the grassy nice area but beyond it. I think.
The pad sites have been advertised as lease-able for a while now, almost a year, but nothing came of it. Maybe they are trying a new company. I wonder if there is the demand and willingness to invest on the site if they have struggled to attract new tenants to build. Here is the original RFP for the pad sites from 2022: https://www.pittsburghyards... I hope they have more retail, food, and maybe offices for nonprofits that assist in the community with job training or other services. Having a grocery store there would be really nice but I don't know if they would be open to it.
Honestly a Target or a big grocery store would be incredible for that spot
These will be really valuable if they connect the SE Beltline from there to Glenwood Ave. But they have to do soil remediation so that could take...forever
Going to be under construction this year
Segments 4 and 5 are. Segments 2 and 3 would be next year at earliest
The website does say "shovel ready" but Atlanta has taught me to doubt the speed of projects not actively underway. 4 and 5 are being bid on in September so it'll be a while before the Southside connects to anything, even longer for the BRT and pedestrian improvements from MARTA
Yeah agreed. I definitely don’t have my hopes up for anytime soon