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those hedge funds don't have access to enough money to move the market that much $2.6 billion is chump change to a medium-sized city with a few hundred thousan
by VRay 5y ago
those hedge funds don't have access to enough money to move the market that much
$2.6 billion is chump change to a medium-sized city with a few hundred thousand residents, much less the US at large
We just need to remove zoning restrictions so that market forces can bring houses back down to being an affordable, depreciating asset.
https://www.worksinprogress.co/issue/the-housing-theory-of-everything/ https://www.worksinprogress.co/issue/the-housing-theory-of-e...
- drnonsense42 5y agoI agree that 2.6b is chump change relative to the US housing market. In fact, it’s not a large hedge fund, regardless of what they’re trading. I think the real concern here is if this model proves to be profitable and that 3b increases by several orders of magnitude across a much larger set of firms and funds. I’m not saying that will happen, but that is an alarming potentiality.
- KaiserPro 5y ago> $2.6 billion is chump change For the entire US yes. For new york city, that's just under ~3% of total sales. Given how fundamentally illiquid residential housing market is, thats more than enough to push prices up/down as the player sees fit.
- thebean11 5y agoI bet it's even an even bigger part of the pie if you exclude $10m+ homes. My hunch is that the middle and low end of the market is more attractive because they are easier to rent.
- PaulDavisThe1st 5y agoSomeone in a related thread here on HN yesterday said that at some recent point in time, US$200M would have bought every piece of residential real estate for sale in Boston (proper). Didn't try to verify if that was true.