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> real estate prices aren't rental rates

Sure, but they are heavily correlated. Price changes in real estate are reflected in rental rates (not 1 to 1, but still reflected)

Also, many of those renters in each politician’s district would like to purchase a home in the same district if the prices came down enough, so the politicians should (in theory) be beholden to their interests, too.

Of course, in reality, real estate owners are a much more powerful (per capita) political force than renters are, so politicians are not automatically catering to the larger majority of their constituents that are not real estate owners.



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