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Unless someone buys up so many properties they can start unilaterally increasing prices, the problem with housing going up isn't rich people buying them and ren
by robertlagrant 2y ago
Unless someone buys up so many properties they can start unilaterally increasing prices, the problem with housing going up isn't rich people buying them and renting them at a market rate. It's the amount of demand vs supply that does it.
And you're right - this is possibly the single biggest issue that's a downgrade for people vs their parents/grandparents, and it's a huge one. But the problem needs to be attributed correctly.
- Hikikomori 2y agoWell you have hedge fund money buying homes and stuff like this: https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent https://www.propublica.org/article/yieldstar-rent-increase-r... Seems to be mostly an American problem, like many others.
- anonymous_sorry 2y agoMore very rich people looking for somewhere to park their money and earn returns means more competition when you want to buy a home. I agree it doesn't necessarily mean rents rises. You might actually expect higher price to earnings ratio with more wealthy people competing to buy assets (see also stocks). But it will lead to the shrinking of the home-owning middle class. That's not to say there isn't also a problem with lack of supply.