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Corporate buyers are one of the many exacerbating factors, and I think that’s what most are saying when they say corporate home buying is a problem. In other w
by kitsunesoba 4y ago
Corporate buyers are one of the many exacerbating factors, and I think that’s what most are saying when they say corporate home buying is a problem.
In other words, there aren’t enough homes and corporations sitting on some percentage of them is making the situation that much worse.
- epistasis 4y agoI don't understand how a corporate purchaser is worse than any other investor; I live in an area with almost only single family homes, and a huge fraction of them are investor owned and rented out. The small time land lords have a huge variance in how well they behave, but I'm not sure why corporate landlords are worse.
- kitsunesoba 4y agoI think the idea is that corporate owners are helping keep prices propped up because they’re much less sensitive to vacancy. They can let a house sit unoccupied for much longer before dropping the price to get someone in compared to a small time landlord. Smalltimers don’t usually have the capital available to do that and will either need to drop prices to get someone in the house or sell the house.
- epistasis 4y agoPerhaps I'm too used to the California market, where the carrying cost of a long-held property goes basically to zero, and most landlords are long time holders of property. So those who have recently bought a property, even corporate buyers, are far far more likely to keep a property occupied than most landlords.