Supply expansion and operating scale systematically negate the rent-raising effects of localized market power.
Although institutional concentration grants operators localized pricing power, their industrial-scale cost efficiencies and net additions to housing supply ultimately drive average rents down.
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This reveals the underlying cost advantages, from bulk procurement to efficient internal property management, that allow institutional platforms to operate far more efficiently than fragmented competitors.
Any localized markups corporate landlords achieve via concentration are ultimately offset by the rent-deflating impacts of increased housing supply and operational scale efficiencies.
Empirical studies prove that industrial scale benefits and the reallocation of supply toward rental stock yield lower net rents, overriding localized asset price pressures.