3 ms·

Investing != hoarding In fact investing stimulates new construction, having the exact opposite effect.

nemothekid 4y ago
>In fact investing stimulates new construction But this isn’t practically true in most major metropolitan areas. When one makes an investment as large as a home, one of the best ways to protect that investment is to block further construction (reducing supply and therefore raising demand on your investment)
- FredPret 4y ago
  Well let’s just make that shit illegal and let builders build new houses until supply meets demand. Voila.
  - nemothekid 4y ago
    >"just make that shit illegal" Except those with the money to make investments in real-estate are the very same people who have enough money to make the political system work for them. "Just make that shit illegal" is simply a refusal to understand how complex these incentives are. If it was so simple to just make that shit illegal it would have been done already; we are nearly decade in to the housing crisis in cities like San Francisco and you think people haven't thought about making it illegal? How do you go about doing that? Eventually you will be forced to consider solutions that the GP was referring to.
deadbunny 4y ago
Given we're in a multi decade slump in house building I'd argue this is not the case.
- pempem 4y ago
  It is tremendously hard to build and I dont think its because people don't want to. reason 1: In fact its not investors who block new building, its single home owners who want to 'maintain' their neighborhood. reason 2: CA has passed a number of resolutions allowing for ADUs, splitting of lots etc. However the city is glacial and beyond opaque in its approval, closing out smaller fish who would try to build things by miring them in requirements that are difficult to meet without a corporate set-up
jmyeet 4y ago
That's capitalist propaganda. For example, in 2021 investors bought 28% of houses sold in Texas [1]. I say "propaganda" because that's the idea: that market forces will solve the problem. But in reality it's easy to get to a state where a single or small number of market participants effectively corner the market or become so politically powerful that any government works at their behest. This includes blocking new construction to protect and appreciate the value of existing holdings. Just look at how much in the last 6-12 months you've seen stories that go "20 offers on this house and it went $200k over ask all cash". The effect of all this is that it's driving rents through the roof, that is adversely affecting the most vulnerable. [1]: https://localprofile.com/2022/06/07/investors-bought-texas-homes-in-2021/ https://localprofile.com/2022/06/07/investors-bought-texas-h...
- seoaeu 4y ago
  People still live in the houses owned by investors!
  - thehappypm 4y ago
    No you see, evil investors hoard the housing and put bouncy castles in them.
- FredPret 4y ago
  Market forces will solve this issue in one year (or however long it takes to build a house). Just make it legal to build new houses. Right now it is practically outlawed due to insane regulations demanded by NIMBYs.

>In fact investing stimulates new construction But this isn’t practically true in most major metropolitan areas. When one makes an investment as large as a home, one of the best ways to protect that investment is to block further construction (reducing supply and therefore raising demand on your investment)

FredPret 4y ago
Well let’s just make that shit illegal and let builders build new houses until supply meets demand. Voila.
- nemothekid 4y ago
  >"just make that shit illegal" Except those with the money to make investments in real-estate are the very same people who have enough money to make the political system work for them. "Just make that shit illegal" is simply a refusal to understand how complex these incentives are. If it was so simple to just make that shit illegal it would have been done already; we are nearly decade in to the housing crisis in cities like San Francisco and you think people haven't thought about making it illegal? How do you go about doing that? Eventually you will be forced to consider solutions that the GP was referring to.

deadbunny 4y ago

Given we're in a multi decade slump in house building I'd argue this is not the case.

pempem 4y ago
It is tremendously hard to build and I dont think its because people don't want to. reason 1: In fact its not investors who block new building, its single home owners who want to 'maintain' their neighborhood. reason 2: CA has passed a number of resolutions allowing for ADUs, splitting of lots etc. However the city is glacial and beyond opaque in its approval, closing out smaller fish who would try to build things by miring them in requirements that are difficult to meet without a corporate set-up

jmyeet 4y ago

That's capitalist propaganda. For example, in 2021 investors bought 28% of houses sold in Texas [1]. I say "propaganda" because that's the idea: that market forces will solve the problem. But in reality it's easy to get to a state where a single or small number of market participants effectively corner the market or become so politically powerful that any government works at their behest. This includes blocking new construction to protect and appreciate the value of existing holdings. Just look at how much in the last 6-12 months you've seen stories that go "20 offers on this house and it went $200k over ask all cash". The effect of all this is that it's driving rents through the roof, that is adversely affecting the most vulnerable. [1]: https://localprofile.com/2022/06/07/investors-bought-texas-homes-in-2021/ https://localprofile.com/2022/06/07/investors-bought-texas-h...

seoaeu 4y ago
People still live in the houses owned by investors!
- thehappypm 4y ago
  No you see, evil investors hoard the housing and put bouncy castles in them.
FredPret 4y ago
Market forces will solve this issue in one year (or however long it takes to build a house). Just make it legal to build new houses. Right now it is practically outlawed due to insane regulations demanded by NIMBYs.