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> Big banks are holding onto large, mostly unoccupied housing developments to create artificial scarcity and drive the prices up. I’m assuming you’re talking a
by tylerrobinson 4y ago
> Big banks are holding onto large, mostly unoccupied housing developments to create artificial scarcity and drive the prices up.
I’m assuming you’re talking about the US. Do you have a source for this claim? There is a problem with vacant houses, but this is the first I’ve heard of the narrative of empty developments implying new houses.
A discussion of vacant housing: https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2022/11/22/the-nations-vacant-homes-present-an-opportunity-and-a-problem https://www.pewtrusts.org/en/research-and-analysis/blogs/sta...
- BearOso 4y agoI can only speak anecdotally and assume it's happening everywhere. I'm in the Midwest US. Banks themselves are building neighborhoods full of spec houses. Half of them go empty because they're overpriced. A bunch of developments have stopped before being completely finished, presumably because they can't put up for sale in that condition, but they still contribute to the bank's assets. I can't say I understand the whole economics of it, but it's obvious something sketchy is happening.