If as a matter of public policy we don't like the mix of investor- and private-owned housing, just tweak the tax code. If you reduce the tax advantage of holding housing as an investment, companies will do it less, prices will be depressed, and owner-occupiers will buy more. When there's local concerns of high demand, I think regulation on things like AirBnBs makes sense. AirBNb cannibalizes housing stock for hoteling stock. Further regulating long-term rental investment doesn't make so much sense to me. Investors who own at scale can better minimize their costs and offer lower prices if competition is robust (which it usually is in housing rental). If you put the clamps on it, you might depress real estate prices and make it easier for owner-occupiers but you perversely put upward pressure on rents and fatten the profits of those owners who still qualify to rent out.
Economists identify an unseen force holding back affordable housing link Are "free" markets naturally eaten alive by monopolies and oligopolies? What structures are necessary to ensure competition?
I don’t about that but I know some rich Californians who bought like five houses in Austin and rented them all out Cha Ching
Housing is being driven by corporations buying up properties to hedge against the stock market's volitivity..... This is not good for the economy as a whole as the rich basically look out the poor and lower middle class from ownership..... DD
thats pretty interesting and i think there is some truth to it. go back 20 years ago and there were lots more local builders out there. they were slowly bought up by nationals and now all the nationals are merging or buying each other out. there are lots of factors contributing to increased housing costs and the difficulty for middle class people to buy. i could see how this type of consolidation/monopoly could exasperate the problem.
if you dont want to read its basically talking about how investors are buying 1/3rd of all housing in austin where it used to be under 20%. there are lots of factors causing soaring housing prices and especially low supply, but i think having investors buying so much of it is the biggest one right now. worth clicking on link for some interesting graphs and the full article. https://www.kut.org/austin/2022-02-08/trying-to-buy-a-home-in-austin-so-are-investors Trying to buy a home in Austin? So are investors. KUT 90.5 | By Audrey McGlinchy Published February 8, 2022 at 5:01 AM CST Count investors among those competing to own a home in the Austin area. According to the real estate data firm CoreLogic, investors made up less than 20% of single-family homebuyers in the Austin area between 2010 and 2020. Last year, that changed: Investors bought about one-third of all the single-family houses sold in the metro area. “This makes sense. It is a city that has been growing, prices have been growing there, population is growing, the economy is growing,” Thom Malone, an economist with CoreLogic, said. "[Austin] represents a good potential return for investors.” CoreLogic defines investor broadly. The firm considers an investor either a non-individual — an LLC, for example — that has purchased a home or an individual buying up three or more properties at once. Malone said several factors may be influencing investors’ decisions to jump into the Austin housing market. For one, federal and local eviction bans have ended, meaning that buying a home to rent out poses less of a financial risk. Plus, as the median sales price of a home in Austin rose nearly 28% last year, homebuying feels like a guaranteed big return on investment. “Investors may be seeing — Oh, housing is getting a relatively better return than our other assets right now, so that’s where I’m going to choose to invest,” he said. Malone said it looks like more investors are holding onto these homes and renting them out in lieu of remodeling and reselling them. “We have seen in Austin a slight uptick in investors buying new construction. That is some indication that they're not looking for flips necessarily, because no one flips new construction,” he said. As long as rent prices continue to climb, renting out these homes is a good deal, according to Greg Hallman of UT Austin’s McCombs School of Business Real Estate Center. In the past year, rent prices in Austin have risen faster than ever recorded. “As long as the demand for rental housing stays strong in Austin — and it appears that it's going to — investors feel like they can count on their rental income,” he said.
Yes it’s basically a natural process that the large will wipe out the small since they can undercut on price or merge or acquire them.
When I did some work.in the Midwest a year ago. I worked cleaning out foreclosed homes for two months. I don't have special insight other than working in a few towns in Iowa, Minnesota, and South Dakota and I couldn't believe how low how low prices were. The big city plays a huge factor in home prices
The federal government encourages home investment to drive the consumer economy. There will never be any discouragement of economy. The US is still a producer of all kinds of products from oil and gas to consumer goods but we are heavily married to housing
This was being rented for $900 in Cedar Rapids Edit: the middle. I worked in the house on the left. The neighbors told me their rent. Young couple. The wife's parents were there and hubby was grilling. Very nice people I never ran into racial problems. I worked in all white rural towns. I stayed in Omaha but in worked in another town in Iowa. I don't all call towns rural unless it's really small I worked in towns that small and in a farm house This guy I worked for was shady. He was black, from NY and went to A&M. He was a director, it's a small company that cleaned out foreclosed homes for banks. They had government contracts associated with Freddie Mac and Fannie Mae but ge was paying me on a 1099. I had to deal with all kinds of bs. He had years involved, he came out the office do field work. He worked in marketing for Apple when the IPhone came out. I won't get into the issues I ran into but they included income In like five years He hardly ran into few racial problems. He told me about one involving police. Neighbors thought he was breaking into the house.
a couple of years ago I went to Alberta for 3 months only, bought a house bc it was dirt cheap then decided to not sell though I disliked the work place , I handed it over to a property manager ..., this is what she recently wrote . (We are at almost zero vacancy now with only 2 of approx 850 places that we did not fill this month. One is getting a new paint job since there is some vacant time, the other is in a building that is always a bit harder to fill. Thank you so much to all of our staff who are so very focussed on making this an exceptional experience for you by having good cash flow. Rent prices are also stabilizing and we are recommending increases in most cases as we renew leases this spring. If you are in the market to add onto your rental portfolio, I suggest that you do it soon as it seems that the housing inventory that is for sale is also declining, so that means prices will creep up. We are receiving many requests to rent...). without changes to tax/regulations why would anyone pass on making extra$$ ! Btw when she suggested a rental range I was shocked! how can people afford it? mortgage is way cheaper and her response was : most folks want to spend their money on cars,cloths,vacation ,so let them have it
This is hard to beat sale technique , and I like San Leon location,never heard of it before https://www.straight.com/news/price...here-owner-wishes-to-stay-for-life-after-sale
The algorithm by the property management company decided my rent goes up 500 dollars after my contract ended lol. Nearly a 30% increase Looking at the market, comparable homes are being listed at least 15% to 20% higher than what I saw a year ago, in the golden street of west Houston suburbia.
