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> Now when it comes to investors sweeping up houses and renting them - yeah, that could be a long term problem. "Fix & Rent" is where the market is headed, for
by subpixel 7y ago
> Now when it comes to investors sweeping up houses and renting them - yeah, that could be a long term problem.
"Fix & Rent" is where the market is headed, for two reasons:
1. the market for single-family fix-and-flip projects is compressing, meaning the profit margin is getting slimmer.
2. the data points to younger people preferring to rent. my own opinion is that it points to them not being able to afford to buy, but regardless: house rentals is a big market, much bigger than many expected.
my take is that the main drawback is that within a certain price range this is bound to drive prices up, making it harder for normal people to purchase a home. and nearly impossible for normal people to find a deal.
- BeetleB 7y agoWithout any strong opinions on the matter (I am not a RE investor), I do find it weird that all the blame is going to the investors when, as you pointed out, the reality is that the market prefers to rent vs own. Should we not "blame" younger people who prefer to rent as much we blame investors? If "normal" people are having trouble purchasing a home, isn't it because a lot more people prefer to rent? Personally, though, I don't believe that younger people preferring to rent is making that big an impact. That's something you see in only a few cities in the US, and most investors who are trying to make money via rentals actively avoid those cities (saturated market).
- subpixel 7y agoMy point is that 'prefer to rent' is inaccurate. 'In no position to buy' is probably more precise.