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> massive investments made by hedge funds, private capital, REITs which does not appear to be addressed at all? If corporations buying houses was actually affe
by woah 5y ago
> massive investments made by hedge funds, private capital, REITs which does not appear to be addressed at all?
If corporations buying houses was actually affecting the purchase market prices, then we'd see an equal effect on rental prices going down. A corporation can't live in a house, so they'd be renting it out. If these evvvill corporations were keeping houses vacant just to screw over regular hard working folks, resulting in no effect on the rental market prices, then we'd see it in the vacancy stats. But that's never actually mentioned by housing conspiracy theorists because the vacancy stats show that the areas with highest prices have extremely low vacancy rates, because demand for housing is so much higher than supply, because not enough housing has been built.
- the_optimist 5y agoThis is a total and complete non sequitur. No reason rental prices would go down. I just looked at materials of one such company touting 50% increases.
- nawgz 5y ago[flagged]
- bogota 5y agoPleased refrain from personal attacks and instead focus on debating what was actually written. I have downvoted you because this goes against the general spirit of discussion on HN.
- nawgz 5y agoYou're right, let me make a good faith response to right-wing late-stage-capitalism propaganda, that's worth my time.
- the_optimist 5y agoDoesn’t have anything to do with wings. This is just economic nonsense.
- notsrg 5y agoIn Toronto alone ~40% of new homes being built are being scooped up by investors that obviously have more cash on hand to pay above asking price. With interest rates so low and demand so high, why would they not be driving up the price? It works in their favor.
- bryanlarsen 5y agoGiven that pretty much everybody in Toronto rents because nobody can afford to buy, it's pretty circular. If they weren't buying to rent them out, then the people who can't afford to buy would have nothing to rent.
- quickthrowman 5y agoHow on earth would higher home sale prices by corporations bidding housing up push rent down? It has the exact opposite effect, rents go up if a property costs more..
- woah 5y agoSeriously? What's the mechanism of this magical connection? Rental prices go up if there is more demand in the rental market.
- liketochill 5y agoLandlords don’t buy properties to rent at a loss. Before they buy they make sure they will be able to charge the rent they need to cover costs. Or at least I do.
- woah 5y agoExactly. Corporations are buying houses because rents are high. Rents are not high because corporations are buying houses. Rents are high because there are not enough houses on the rental market, because not enough houses are built.
- nawgz 5y agoYou talk about supply and demand in your comments, and then somehow the idea that corporations controlling the supply lets them manipulate and ignore demand just goes over your head. Strange.