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If they cannot be resold to other speculators their price can go waaay down
by seydor 10mo ago
If they cannot be resold to other speculators their price can go waaay down
- Aurornis 10mo agoThe vast majority of home purchases aren't from speculators or institutional investors. Institutional investors only own about 0.5% of homes. If they're forced to stop buying, nothing will really change in a noticeable way. At best, small landlords and investors will scoop attractive properties up for slightly less.
- Octoth0rpe 10mo ago> Institutional investors only own about 0.5% of homes Where they buy those homes matters though. In areas with lots of jobs/growth (often the areas experiencing the most housing price pain), that number is likely much higher.
- antonymoose 10mo agoIs that 0.5% a uniform distribution across the United States or is it concentrated in a handful of hot markets? I suspect the latter and have to imagine some distortion must be occurring in those regions.
- ntonozzi 10mo agoMaybe the best part of this legislation will be that people will realize it's not institutional investors that are driving up home prices. No, that's far too optimistic.
- tbrownaw 10mo agoWhen this doesn't make anything better, the conclusion won't be that it was a bad idea but that it somehow didn't go far enough.
- ntonozzi 10mo agoHome affordability is getting better anyways, which is great, because we are finally having a surge in new & denser home building in popular regions and there mortgage rates are more reasonable than they were in the COVID-era.
- xadhominemx 10mo agoNonsense. Do you think these landlords intentionally overpaid for the properties? They are sophisticated entities who like to pay at or below fair value.
- roywiggins 10mo agoIt happens https://www.npr.org/2021/11/03/1051941654/zillow-will-stop-buying-and-renovating-homes-and-cut-25-of-its-workforce https://www.npr.org/2021/11/03/1051941654/zillow-will-stop-b...
- olyjohn 10mo agoIt's pretty simple, you overpay for something if you suspect it will be worth even more in the future.
- usefulcat 10mo agoThe only way that prices could go waaay down is if the supply of new homes increases or demand decreases (or some combination of both). Which of those do you think is likely as a result of the proposed action, and why?