Why do increasing incomes support demand? I am not going to move to another place exactly the same just because I make more money. In order for prices to increase, I would have to be moving into a better place than I am in now, which means it would cost more anyway. Me moving laterally gives me no utility.
In the American rental market, for most lessees, the lessor can raise the price an arbitrary amount periodically. This is true for virtually all tenancies in this country.
