Investors are investing in existing housing because it’s an excellent investment with good returns. The primary reason it’s a good investment is because local m

Investors are investing in existing housing because it’s an excellent investment with good returns. The primary reason it’s a good investment is because local municipalities ban the construction of most new homes despite the high demand. Low supply combined with high demand leads to increasing prices on the existing units. A solution is to reform zoning and allow developers to build plentiful new homes, especially multi family homes near transit. The new supply will provide competition on older units, reducing price pressure on older units. That’s the beauty of new homes: even if expensive they provide competition to existing landlords.