Quote:
Originally Posted by GGnoRE
In my previous posts, I provided clear data that shows mom & pop investors "scaled" to population level is a problem in our residential RE market (25% of transactions and 30~40% of housing stock attributed to multiple property owners). Those aren't some minuscule amount of demand that we can afford to ignore.
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Bottom-line is that we have a multi-prong issue; foreign investors, retail investors, and institutional investors all play a role in creating excess demand.
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Yes but...this technically is only a problem if this housing stock isn't available on the market in the form of rental housing.
That mom and pop are buying up additional real estate is little more than a symptom - they're able to do this because their homes have appreciated so much in value that they can take the money out to buy additional homes and the reason their homes appreciated is because there isn't enough homes in the first place.
That rental prices are climbing wildly is another signal of a lack of housing stock which then causes more mom and pops to take money out of their homes to buy more investment properties. Rinse and repeat.
The excess demand isn't from foreign investors, mom and pops, corporations etc - they're just acting on lazy fucking city governments who are too god damned fucking chicken shit to allow more housing which has caused housing to change from HOUSING into investments.