3 ms·

I bet 80%+ of that is bought by investors before construction completes.

• ozmodiar 3y ago
  They openly advertise on the side of the buildings that x% of units are already sold while there's barely a frame up.
• polski-g 3y ago
  If enough housing was being built, then the expected return on houses would be negative and investors wouldn't be buying them.
  • wubrr 3y ago
    You're ignoring the fact that most of the new supply being purchased by investors means they have more power to increase rents, re-leverage their existing real-estate and buy up more. Continuously increasing real-estate prices and rents until the bubble bursts. If everything worked based on the most basic econ101 principles, we wouldn't have any bubbles in the first place.