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> the real problem is the investor class snapping up the housing supply. I don’t understand why this narrative keeps popping up. Institutions own a very small

by rank0 3y ago

> the real problem is the investor class snapping up the housing supply. I don’t understand why this narrative keeps popping up. Institutions own a very small percentage of homes in the US. They much prefer to own apartments, which is the most effective way of increasing the available shelter. I understand that it’s convenient to blame the wealthy… but don’t you think homes are expensive because of 0% interest rates over the last decade?!

LapsangGuzzler 3y ago
A recent real estate thread detailing the decline of Airbnb revenues (avg yoy revenue is down by almost 50% in cities like Austin and Phoenix) puts things into perspective. For example, there are 10x as many active AirBnb rentals in Sevierville, TN (a popular mountain tourism spot) as there are homes on the market. The overall percentage of home ownership by investors might be small, but they represent a large percentage of real estate transactions taking place today. Buying a house today largely means being able to outbid people with millions of dollars in cash and real estate at their disposal, you will see this firsthand if you ever try to buy a home in a competitive area.
- brodouevencode 3y ago
  > Buying a house today largely means being able to outbid people with millions of dollars in cash and real estate at their disposal, you will see this firsthand if you ever try to buy a home in a competitive area. In my experience this is certainly true with any large land plot, which can easily be subdivided into smaller plots with houses.
- rank0 3y ago
  I’m not against municipalities placing restrictions on airbnbs. The reality is that they never end up doing that. That tiny mountain spot you mentioned probably LOVES all the tourism revenue. Also I don’t really understand your point…a small TN mountain town who thrives off tourism is SO far away from the shelter needs of 99.99% of Americans. Investors impact the market to some extent…but the insane monetary policy of 0% rates and 5 rounds of QE is EASILY the biggest factor. It’s not even close. EDIT: lol at your last comment. I bought a brand new house in midtown Atlanta 2021.
brodouevencode 3y ago
You both are correct from what I can tell. The HOA-less areas properties in my area are going quickly, anything larger than 5 acres is going quickly, etc. But to your point near-zero interest rates cause demand to rise which also puts upward pressure on price.

by rank0 3y ago

LapsangGuzzler 3y ago

A recent real estate thread detailing the decline of Airbnb revenues (avg yoy revenue is down by almost 50% in cities like Austin and Phoenix) puts things into perspective. For example, there are 10x as many active AirBnb rentals in Sevierville, TN (a popular mountain tourism spot) as there are homes on the market. The overall percentage of home ownership by investors might be small, but they represent a large percentage of real estate transactions taking place today. Buying a house today largely means being able to outbid people with millions of dollars in cash and real estate at their disposal, you will see this firsthand if you ever try to buy a home in a competitive area.

brodouevencode 3y ago
> Buying a house today largely means being able to outbid people with millions of dollars in cash and real estate at their disposal, you will see this firsthand if you ever try to buy a home in a competitive area. In my experience this is certainly true with any large land plot, which can easily be subdivided into smaller plots with houses.
rank0 3y ago
I’m not against municipalities placing restrictions on airbnbs. The reality is that they never end up doing that. That tiny mountain spot you mentioned probably LOVES all the tourism revenue. Also I don’t really understand your point…a small TN mountain town who thrives off tourism is SO far away from the shelter needs of 99.99% of Americans. Investors impact the market to some extent…but the insane monetary policy of 0% rates and 5 rounds of QE is EASILY the biggest factor. It’s not even close. EDIT: lol at your last comment. I bought a brand new house in midtown Atlanta 2021.

brodouevencode 3y ago

You both are correct from what I can tell. The HOA-less areas properties in my area are going quickly, anything larger than 5 acres is going quickly, etc. But to your point near-zero interest rates cause demand to rise which also puts upward pressure on price.