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Traditional property developers don't usually hold onto the properties they build, they sell them off. Even skyscrapers sell off their apartments and commercial
by ehnto 4y ago
Traditional property developers don't usually hold onto the properties they build, they sell them off. Even skyscrapers sell off their apartments and commercial sections. Maybe some don't now, but I think that might reflect a shift from building being most profitable to renting being most profitable. In that case, eventually a renting-developer would lose incetive to build more as not to dilute their rental margins.
- scarface74 4y agoAnd the people buying them also have profit incentives. Whether JPM is doing it to profit from rentals directly or with the expectation that some future buyer won’t make a difference. But it’s illogical by any standard economic model that any supplier will not build more units if they see it can bring in more money. Either they build more or someone else does.