Essay on Pricing Levels of Apartments

Most working class individuals in the American economy prefer staying in rental apartments before buying and moving into their houses. In the NYC, San Francisco and Washington DC, there is a possible trend of prices calming down compared to the rates in at which they are right now. This growth has been brought about by the continuous increase in demand for the apartments over the past one decade. This rise in demand leads to an increase in the number of housing agencies in the entire nation. In San Francisco, the price of a single bedroom ranges between 3600 us dollars, ("San Remo Apartments (originally San Remo Hotel)" 41) in New York City falls under the same range with most houses are offered at the cost of 2600 dollars. (Nolen, et al. 34) In Washington DC the median price for a single bedroom is at 2000 dollars. In the cities, the demand for the houses and apartments is recorded to be reducing. The decrease in demand is brought about by the continuous rise in the price levels of apartments in the cities. This will force the individuals to take the cheaper rooms leading to the owners of the apartments to change their mode of operation. These lower priced rooms affect mainly the large firms which priced their apartments at a higher level.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

The continuous decline in the demand for apartments in these cities was mainly brought about by the high price levels set by the agencies. Most individuals opt to live in houses that can suit their living standards hence they will be forced to move to apartments that are favorable to them. The reduction in the level of consumers from major apartments will lead to the agencies coming together and bringing up a standard price for the apartments this will enable the business firms not to suffer loss. The government should be allowed to intervene and come up with fiscal policies that will enhance the process of price moderation and the unifying of the agencies so as to bring the price at a level that will be both producer-friendly and consumer friendly.

If the price of the rental houses is at equilibrium, the demand for the houses will rise from the low level it is currently at to the equilibrium point. This is because the reduction in price will favor the consumers since the given price will be less than the initial price hence supporting their level of income thus leading to most consumers demanding for the works. The housing market system will be normalized.

Demand and supply are evident and very essential in all sectors of the economy. In the housing department, for the economy to be at equilibrium the demand for houses should be close to the consumer size in the market. But in these regions, the rooms available are slightly lower than the number of customers. This brought about the rise in the price of the apartments. To bring this back to normal outside forces like the government fiscal policies are required to be employed to enable the system to get back to its normal functioning. Further, in the current status, the inventory is increasing in line with the prices of the apartments.

To curb the rise in price levels in this sector back to equilibrium, the policies put by the government will be essential so as to ensure that all the parties involved are satisfied. This can be done by coming up with a unified price level that will benefit not only the consumers but also the producers in the economy

Works Cited

Nolen, Heather, et al. "Retrofitting Garden-Style Apartments in Brooklyn, New York." 2016."San Remo Apartments (originally San Remo Hotel)." Manhattan Skyscrapers, pp. 67-68.