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I don't see why small landlords are relevant to a supply shock here. If supply has been effectively destroyed by people not paying rent but also not being evict
by xxpor 5y ago
I don't see why small landlords are relevant to a supply shock here. If supply has been effectively destroyed by people not paying rent but also not being evicted, that should affect everyone right? In other words, it'd only matter if the bottleneck is the amount of capital buying houses to rent coming from small landlords. We all know that's not the case though, the bottleneck is the actual supply of housing.
- gbronner 5y agoThe pandemic made it relatively cheaper to use rather than rent space. So some units are off the market and are in use as guest units/ extra bedroom/whatever
- hn_throwaway_99 5y agoSmall landlords are relevant to the supply shock because, after seeing the effect of the eviction moratorium, many will opt to either (a) not rent out existing space they own at all, or certainly find less risky ways to rent it out, like STRs, or (b) find something else to invest their money into in the first place. Also, there is evidence that small time landlords are much less aggressive when it comes to evictions (see https://www.atlantafed.org/-/media/documents/community-development/publications/discussion-papers/2016/04-corporate-landlords-institutional-investors-and-displacement-2016-12-21.pdf https://www.atlantafed.org/-/media/documents/community-devel... from the Atlanta Fed). This means that small-time landlords provide a greater percentage of the supply for "marginal renters", i.e. renters who are more likely to miss payments. When that supply goes away it means there will be more competition among these marginal renters to find a place to live.