3 ms·

I assume because it allows for what amounts to price fixing.

• epistasis 4y ago
  They would have to consist of a huge fraction of the market in order to do price fixing, but the highest percentage of purchases I have ever seen referenced is about 10% of purchases in a time period, which doesn't get anywhere close to having a significant number of the housing stock.
  • insanitybit 4y ago
    How huge, do you think? I imagine that in actuality 10% would be enough to move the market, especially if other players do the same.
    • epistasis 4y ago
      10% of a few quarters of purchases is still a tiny tiny tiny fraction of the market, and not enough to coordinate pricing. I think a far bigger concern is shortages of housing as individual homeowners and landlords act as a group to suppress local supply of housing. Local city councils tend to be controlled by such real estate interests. Corporate purchasers can piggy-back on that sort of regulatory capture without expending a single dime.