This is not a free market. The “invisible hand” reverse to market forces.
In a free market, a cartel raising prices would result in increase supply as a result of capital moving into the market seeking profits. In other words the cartel’s action would modify the market in such a way as to nullify the cartel.
But in our current housing, supply is artificially and heavily constrained by government fiat. It is not free and that is specifically the reason why this kind of price fixing is possible.
The reason why free markets are important is because it prevents this kind of thing.
This is “the invisible hand of the free market” right wing punnits scream about.
It’s not market forces, it is illegal (or at best very dark grey rule-bending-in-half) collusion.
This is not a free market. The “invisible hand” reverse to market forces.
In a free market, a cartel raising prices would result in increase supply as a result of capital moving into the market seeking profits. In other words the cartel’s action would modify the market in such a way as to nullify the cartel.
But in our current housing, supply is artificially and heavily constrained by government fiat. It is not free and that is specifically the reason why this kind of price fixing is possible.
The reason why free markets are important is because it prevents this kind of thing.