3 ms·

I believe the problem is that institutional buyers are out-competing small families in the market. Large funds are paying cash for these houses to flip them and

I believe the problem is that institutional buyers are out-competing small families in the market. Large funds are paying cash for these houses to flip them and the people who actually need to homes can't make the same deal.

DoreenMichele 7y ago
It's far more complicated than that. In the 1950s, the average new home was 1200sqft and held about 3.5 people. Today, the average new home is more than twice that size and holds one less person. Since about the 1960s, we've also torn down about a million SROs. SROs used to be normal market rate housing. Now, most seem to be part of some transitional housing program for homeless people. https://en.m.wikipedia.org/wiki/Single_room_occupancy https://en.m.wikipedia.org/wiki/Single_room_occupancy