Craigslist, Freshness, Bait and Switch Problems

When Lawrence and I gave our original Demo Day pitch in the Summer 2009 Y Combinator batch, we cited Craigslist as a large part of the NYC apartment finder problem. Back then, you could not sort by price, location, or photo gallery. The only thing you could do was “grep for text” that suited you (like the word No Fee or Luxury Highrise). Many predicted Craigslist would not last so long, while others, including Harvard Business School professors Peter Coles and Ben Edelman argued the network effect would ensure their survival.

ย 
Image may contain: one or more people, people standing and outdoor
ย 

But the one thing Craigslist got right was their focus on Freshness. They mimic a real-life bulletin board, because you can’t sort by anything reasonable (price, distance from a landmark, etc). As new postings come in, they obstruct older postings. Everyone is welcome to continue browsing the older items, to a point, but savvy renters know that anything old is probably already gone – otherwise the agent would have been reposted it again.

The MOST important component in our HopScore ranking system is the Freshness. Given how quickly the market moves, and how quickly inventory can come off the market or change in price, Freshness measures how likely the listing data is still accurate. Our algorithms can see how many other renters have already inquired on a particular listing, when the agent or landlord most recently updated the listing, and whether the account has a track record of accuracy.

While designing a sorting algorithm for apartment listings, there is a counter-intuitive logic we face. We can use other factors such as Quality and Manager scores to determine whether an apartment will be popular. However, after crossing a critical threshold, the MORE people we have seen click on and inquire about a listing, the LESS likely we should recommend it to others. Either the apartment is no longer available, or there is something wrong with it after 20 renters have scheduled showings and none have taken it.

Lee Lin
Lee Lin
Lee is a data geek from MIT who spent years at quantitative hedge funds cranking out models to explain and predict financial markets. Real estate has always been a big part of Lee's life. He grew up helping out at his parents' Jersey Shore motels, became a landlord his first year out of college, analyzed mortgages on a fixed-income trading desk, and acquired a New York real estate license. At RentHop, he combines his nerd talents and real estate knowledge to constantly tweak the secret HopScore. He currently lives near Bryant Park and his favorite restaurant was Cafe Zaiya (now known as Tomiz).

You May Also Like

Summer Decorations For Your Apartment

Summer is here to stay, which usually means a beach vacation, frozen margaritas, and chilling in a pleasantly decorated space. But, not everyone has...

10 Things to Check Before Renting an Apartment

Finding a new apartment is equally exciting as it is nerve-wracking. In places like New York City, renters only have a few weeks to...

The Hidden Waterfalls of New York City

New York City isnโ€™t just a huge, concrete jungle. Behind the bustling traffic and tall skyscrapers, are both natural and man-made hidden escapes. What...

Recent Articles