UBI is implemented tomorrow. Every citizen gets $1000 per month.
Landlord now knows you have an extra $1000 that you never had before. Why wouldn’t the landlord raise prices?
Now you have an extra $1000 a month and instead of eating rice and beans for a few meals you go out to a restaurant. The restaurant owners know everyone is eating out more so why not raise prices and maximize shareholder profit as always. The restaurant/corporation is on TV saying, “well, demand increased and it is a simple Economic principle that prices had to increase. There’s nothing we can do about it”.
Your state/country has toll roads. The state needs money for its deficit. UBI is implemented and the state/country sees it as the perfect time to incrementally raise toll prices.
Next thing you know UBI is effectively gone because everything costs more and billionaires keep hitting higher and higher all time net worth records.
One thing nobody ever considers about landlords. . . It costs them a considerable amount of money for their property to be empty. Most of them will accept slightly lower rents to keep the property occupied constantly. This cost avoidance ensures that there are always landlords at below market value, thus keep the higher rents in check.
They might, but Demand is high enough in California they’re still raising rates. Demand doesn’t change because of this. Supply doesn’t change. But the amount of available cash that a rents has will have changed, which means the market will change accordingly.