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> "In new research, Stephen Billings and Adam Soliman find that investor purchases led to a decline in property values for nearby homes, almost exclusively in B
by chiefalchemist 3y ago
> "In new research, Stephen Billings and Adam Soliman find that investor purchases led to a decline in property values for nearby homes, almost exclusively in Black neighborhoods, as well as an increase in crime and reduced political participation and property maintenance."
This statement feels very much like correlation to me. The true causation is that these purchases become rentals; rentals is the cause.
I'll paraphrase the idea behind this (as read in Matt Desmond's "Evicted"): Neighborhoods with higher "churn" have less stability. Less stability / more turnover becomes a breeding ground for sociopolitical ills (e.g., crime, less voting, etc).
- salawat 3y agoKeep in mind suffrage in the U.S. used to be bound to property ownership. It's not that way anymore (thank God), but think long and hard about the reprecussions about a world where there is a significant and tangible power asymmetry between the owner and occupant of a property. When you rent, no one is safe. Eventually the 'owner' may just decide they don't like you anymore.
- chiefalchemist 3y agoIn some states yes, I suppose that's the case. But in others (e.g., NJ) when you lease, you lease the property. Even if the owner sells, the lease is binding. That said, even so, the balance of power is asymmetric. The landlord has a lawyer, the tenant likely cannot. And let's face, all things being "equal" the political system is going to tilt to the money.