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Since land is a limited asset they can effectively corner the market in specific regions and gain pricing power, allowing them to turn that 20% purchase price p
by randomfool 5y ago
Since land is a limited asset they can effectively corner the market in specific regions and gain pricing power, allowing them to turn that 20% purchase price premium into a hefty profit.
Cities can counter this by allowing more new construction but backfilling Single Family Residences requires land and that may not be readily available within certain commute distances.
- rkangel 5y agoIt's slightly more complicated than that because what they'll do is keep the properties and rent them. There being few houses to buy increases the demand for rent, and cornering the rental market means you can control rent prices.
- tptacek 5y agoThere is no analysis anywhere that suggests Blackrock is poised to corner the rental market.