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> Homebuyers are still being priced out by institutional investors looking to be long-term landlords. There’s really no evidence that this is the cause of any
by djrogers 5y ago
> Homebuyers are still being priced out by institutional investors looking to be long-term landlords.
There’s really no evidence that this is the cause of any of the housing bubble. Sure, it makes a good twitter thread, but institutional investors make up a tiny percentage (1%ish) of single family rentals…
[1] https://www.vox.com/22524829/wall-street-housing-market-blackrock-bubble https://www.vox.com/22524829/wall-street-housing-market-blac...
- orangepurple 5y agoYet for some reason we are always being outbid by them
- 88913527 5y agoAs percentage of the entire market, 1% is small. But prices are set on the margin: the currently active buyers and sellers. Only a small fraction of the entire housing stock churns over each year. So if institutional investors want to buy a few thousand homes, it's absolutely substantial on its impact to prices. Only 40,000 homes are sold annually in San Diego county, despite there being 1.4 million residents.
- mellavora 5y agoActually, yes there is. My brother has a senior position at HUD, they've been very concerned about this the last few years. You won't hear this at the cabinet level, because those are all political appointees, but when you get down to the career people, they have grave concern over institutional buyers.