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Hypothesis: investors rent out their investment housing (to make a profit) so it doesn't really reduce housing supply, it just shifts supply from owned to rente
by klipt 1y ago
Hypothesis: investors rent out their investment housing (to make a profit) so it doesn't really reduce housing supply, it just shifts supply from owned to rented.
- tristan957 1y agoIt reduces supply for people who exclusively want to own. I'm not going to tell people what is the better financial decision for them, but there is a segment of society that wants to own a home regardless of whether renting is more financially beneficial.
- rconti 1y agoYeah, and it will depend a lot on the regulatory structure in the local environment, plus national things like interest rates. With prop 13 locking in below-market taxes, you'd have to be crazy to sell property in CA. With a different structure, you'd have to be crazy to keep it!