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Investors only invest in things with a good return. It's why they don't buy up, say, nails, because the nail makers would just produce a lot more nails to sell
by davidw 1y ago
Investors only invest in things with a good return. It's why they don't buy up, say, nails, because the nail makers would just produce a lot more nails to sell to them and they'd be left sitting with a bunch of nails.
They invest in housing because it's scarce because we don't build enough of it.
And if you look at the actual numbers, large-scale institutional investors just aren't that big a factor. It's another bogeyman for people desperate to avoid the solution to not having enough housing: building more housing.
Austin is an example of the market balancing out when allowed to do so.
- tharmas 1y agoWell, in Vancouver Canada, they built tons and tons of condos. But they were mostly bought up by local and overseas investors. In, fact some condo buildings weren't even advertised at all in Canada, only in Asia. I grant the Austin Texas is its own unique situation. Also, developers don't want to build build build housing as that, like you said would help to reduce the price.