2 ms·

Yes, supply and demand. Excluding buyers reduces demand, and thus reduces prices.

by db48x 4y ago

orwin 4y ago
But buyers will just become renters then, changing nothing for the prices.
- db48x 4y ago
  The buyers who are being excluded do not want to rent. They might want a place they can visit for a few weeks, but mostly they want an investment property.
BurningFrog 4y ago
I'm claiming the fundamental underlying demand is for actual housing. Canadian cities are not allowing enough housing to be built for their increasing population, which leads to a price spiral, which in turn attracts savvy investors. Who ultimately owns the properties does not really enter into the price equation. I know the stories of how foreigners are so greedy that they buy houses but decide to forego the income from renting them out. Those anecdotes don't pass my smell test. Greedy people like to have income!
- fps 4y ago
  You may not believe it, but the situation is very well documented and certainly a thing that is removing housing stock from cities around the world. Housing has a value as an investment, and leaving the housing unoccupied reduces the cost to maintain the investment. Tenants have a lot of protections in many jurisdictions, and an owner is responsible for maintenance, depreciation and damages, while a tenant cannot be evicted by the landlord who wants to sell a unit without a substantial waiting period, if at all. https://bostonagentmagazine.com/2018/09/11/study-bostons-new-luxury-towers-largely-sit-empty/ https://bostonagentmagazine.com/2018/09/11/study-bostons-new... https://nypost.com/2021/08/05/nearly-half-of-luxury-units-empty-in-billionaires-row-buildings/ https://nypost.com/2021/08/05/nearly-half-of-luxury-units-em... https://www.nytimes.com/2017/07/21/upshot/when-the-empty-apartment-next-door-is-owned-by-an-oligarch.html https://www.nytimes.com/2017/07/21/upshot/when-the-empty-apa...

2 ms·

Yes, supply and demand. Excluding buyers reduces demand, and thus reduces prices.

by db48x 4y ago

Yes, supply and demand. Excluding buyers reduces demand, and thus reduces prices.

orwin 4y ago
But buyers will just become renters then, changing nothing for the prices.
- db48x 4y ago
  The buyers who are being excluded do not want to rent. They might want a place they can visit for a few weeks, but mostly they want an investment property.
BurningFrog 4y ago
I'm claiming the fundamental underlying demand is for actual housing. Canadian cities are not allowing enough housing to be built for their increasing population, which leads to a price spiral, which in turn attracts savvy investors. Who ultimately owns the properties does not really enter into the price equation. I know the stories of how foreigners are so greedy that they buy houses but decide to forego the income from renting them out. Those anecdotes don't pass my smell test. Greedy people like to have income!
- fps 4y ago
  You may not believe it, but the situation is very well documented and certainly a thing that is removing housing stock from cities around the world. Housing has a value as an investment, and leaving the housing unoccupied reduces the cost to maintain the investment. Tenants have a lot of protections in many jurisdictions, and an owner is responsible for maintenance, depreciation and damages, while a tenant cannot be evicted by the landlord who wants to sell a unit without a substantial waiting period, if at all. https://bostonagentmagazine.com/2018/09/11/study-bostons-new-luxury-towers-largely-sit-empty/ https://bostonagentmagazine.com/2018/09/11/study-bostons-new... https://nypost.com/2021/08/05/nearly-half-of-luxury-units-empty-in-billionaires-row-buildings/ https://nypost.com/2021/08/05/nearly-half-of-luxury-units-em... https://www.nytimes.com/2017/07/21/upshot/when-the-empty-apartment-next-door-is-owned-by-an-oligarch.html https://www.nytimes.com/2017/07/21/upshot/when-the-empty-apa...