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I mean, responding to price signals by providing much needed housing in markets where rentals are scarce, is societally beneficial and not different from any bu
by joshlemer 3y ago
I mean, responding to price signals by providing much needed housing in markets where rentals are scarce, is societally beneficial and not different from any business trying to be successful in producing goods or services for their customers...
- deleted 3y ago[deleted]
- MereInterest 3y ago“Rentals” are not a product. “Housing” is a product. Buying a house to rent it out doesn’t increase the supply of housing, any more than ticket scalpers increase the number of seats in a stadium.
- joshlemer 3y agoInvestors buying property to rent it out, are in effect speculating on real estate prices. By speculating, they are providing liquidity to the market and absorbing risk from buyers, sellers, and developers. They make the market functional and contribute to price discovery. Having prices that accurately reflect the value of the asset will encourage developers to build the right amount of housing, so in a round about way, yes they do increase supply. The same applies to ticket scalpers. They absorb risk from ticket sellers, so there is less risk in putting on a show that might not sell all the seats, improving its profitability,