4 ms·

No, they’re buying them up because rates are so low it costs them little to borrow/buy.

• bpodgursky 5y ago
  They wouldn't be buying houses if houses weren't an appreciating asset. Let's change that.
  • cannonpalms 5y ago
    Just to be clear, we shouldn't throw the baby out with the bathwater. Houses can and should be appreciating assets. However, their rate of return shouldn't be as astronomical as they are at present. In inflationary environments, money will always flock to real estate. That shouldn't change. The goal of increasing supply is to lower returns to such a point that they remain attractive to first-time buyers but are suboptimal for the institutional investor.
    • oldsecondhand 5y ago
      You still haven't given a reason why they should be appreciating assets.
    • bpodgursky 5y ago
      Why should houses be an appreciating asset? Cars are an expensive depreciating asset, and the car economy works just fine.