Costco profitability shows scale lowers prices, Jay Parsons notes

Costco profitability shows scale lowers prices, Jay Parsons notes
Costco scale lowers prices, rental impact

Jay Parsons observes that American consumers recognize Costco's profitability comes from its ability to leverage scale and size to provide lower prices.

He points out that, by contrast, many assume larger rental housing operators increase rents, when in fact scale may lead to lower costs for consumers, similar to the Costco model.

Parsons has previously questioned estimates of institutional ownership in the sector, arguing that private equity likely owns a larger share of U.S. apartment buildings than official figures suggest here. He has also commented on the merger between AvalonBay and Equity Residential, noting that the combined company would control about 180,000 units, or just 0.5% of the rental market here. These observations frame the ongoing debate over the role of scale in housing affordability.

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