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The article says that the new home construction is mostly going to apartments because tight credit means more people are renting. But then laments the low inven
by sxates 9y ago
The article says that the new home construction is mostly going to apartments because tight credit means more people are renting. But then laments the low inventory for sale that is driving up prices. So which is it? Too many buyers or too many renters? Or is it a problem on both ends?
- cvwright 9y agoOther reports say that hedge funds and other investors bought up lots of houses after the crash, and are now renting them out through management companies. If true, that would both contribute to the lack of supply for purchase and capitalize on the demand for rentals.
- jeffrogers 9y agoThis is definitely a piece of the puzzle in California.
- logfromblammo 9y agoIn movie metaphor, Old Man Potter finally bought out Bailey Building & Loan when it went under in 2007, and now Bedford Falls is turning into Pottersville. As far as I am aware, the FNMA/FDMC system only guarantees mortgage loans for properties with existing [appraisable] structures, so borrow-to-build lenders face significantly higher risks and lower liquidity. It's harder to buy undeveloped land and build a hovel on it from local materials, than it is to buy an overvalued 5-bedroom McMansion, built from twigs, bird spit, and a 10-year horizon for its planned obsolescence.
- jeffrogers 9y agoBoth ends in Califnornia.
- balls187 9y agoFewer people are in a position to qualify for a mortgage, and those that are, are competing for fewer houses because existing inventory aren't being sold, but instead rented.