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"Private equity generating rental income" is a lie fed you by the rich lobby. The real reason (everywhere in US and Europe) is zoning, which is a subsidy to the
by loglog 10mo ago
"Private equity generating rental income" is a lie fed you by the rich lobby. The real reason (everywhere in US and Europe) is zoning, which is a subsidy to the owners of existing buildings at the cost of everyone else.
- ambicapter 10mo agoAnd who owns those buildings?
- SubmarineClub 10mo agoMost old NIMBYs of past generations who already got theirs.
- kiba 10mo agoBuilding like cars depreciates over time, while land don't. Economic rent is in the land.
- pessimizer 10mo ago> The real reason (everywhere in US and Europe) is zoning This is a lie fed to you by the rich lobby. Destroying zoning would launch the value of the land current owners have into the stratosphere.
- potato3732842 10mo agoCalling it a "subsidy for existing owners" is a slighty of hand that avoids blaming the literal hordes of useful idiots who are happy to see all manner of asinine provisions written into the zoning code to cater to their interest, whatever that may be. If it were just property owners it wouldn't have gotten done. It's busybodies, environmentalists, moralizing jerks, etc, etc that provide the necessary political will.
- kiba 10mo agoZoning change would spike land value in more populated area much more closely located to metro center, but it will depress demand on locations further away from the urban center.
- impossiblefork 10mo agoNo, it isn't. 1/3 of the houses bought in the US are bought by these kinds of organizations. Zoning might matter, but large capital owners are buying up a large fraction of the houses that are for sale and this is obviously driving up prices.
- senordevnyc 10mo agoThat's not true: https://www.cnbc.com/2025/10/07/home-sales-investors-make-up-highest-share-of-buyers-in-5-years.html https://www.cnbc.com/2025/10/07/home-sales-investors-make-up... Excerpts: Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025. Institutional investors are selling more homes than they buy and have been for six consecutive quarters. While large institutional investors continue to get most of the headlines in the single-family rental space, small investors account for more than 90% of the market. These are individuals owning 10 properties or less. The largest investors, those with 1,000 or more properties, make up just 2% of all investor-owned homes.
- impossiblefork 10mo agoThat is the same source as I read, but >Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025. is, as I view things, what I said. You may say that individual real estate investors are not typically large capital owners, but that's a definitional thing, or a matter of assessment that isn't interesting to debate. No matter how you choose to define it, investors buying homes are buying a substantial fraction of the homes on the market (1/3) and presumably have a substantial effect on prices.
- senordevnyc 10mo ago"Definitional things" are often pretty important to productive discourse, and both of the recent comments you responded to with your assertion that "these kinds of organizations" are buying up 1/3rd of homes were clearly talking about large institutional investors, not some guy who owns a few rental homes.