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>Today housing is made into a good investment by artificially restricting its supply. How? Perhaps in San Francisco, but most places are building like crazy.
by Clubber 3y ago
>Today housing is made into a good investment by artificially restricting its supply.
How? Perhaps in San Francisco, but most places are building like crazy.
Zillow tried this same investment strategy a year or two ago and it bit them in the ass. I wonder how much high interest rates is fueling this, assuming the PE firms have cash to buy where most individuals/families would be hesitant to buy at such a high rate.
- anthonypasq 3y ago> but most places are building like crazy. false
- bradleybuda 3y agoHere's 60 years of data on new housing starts: https://fred.stlouisfed.org/series/HOUST https://fred.stlouisfed.org/series/HOUST I don't see a boom. Especially when you adjust for US population over that time, which has ~doubled.
- floxy 3y agoHow should we interpret "Thousands of Units, Seasonally Adjusted Annual Rate" in that data? If you download the file, and sum the column you get 1,114,912, which would be 1.1 billion if the units are truly "Thousands of Units". Here is a definition of "housing start" from another site: >"Housing starts is the name for a measurement of the total number of new private residences — single-family homes as well as condos, townhomes and apartments — that have broken ground." https://www.bankrate.com/real-estate/real-estate-housing-starts/ https://www.bankrate.com/real-estate/real-estate-housing-sta... So does the "Seasonally Adjusted Annual Rate", mean each is month is effectively showing the annual rate? So the January 1959 number of 1,657 means that if you extrapolated the month of January you'd get 1,657,000 houses in 1959? That probably makes the most sense(?). Then the average of 1,433 thousand units per year, over 64 years, yielding 91,715,126 total new units since 1959.
- deleted 3y ago[deleted]