Glad to see the final section basically cover that this is not actually a problem. I sort of wish the headline was more of the "Why you shouldn't be worried about private equity buying your neighborhood."
Why and how did that ear worm infect so many people?
When you have a bunch of rental properties in your neighborhood, you have different maintenance standards and tolerance for unoccupancy. On an average, this allows the neighborhood to be on an average, be average. When you have large corporations buying up all the homes in the neighborhood, things swing heavily in one direction depending on the market conditions.
> But the bigger problem for housing affordability, he adds, is that "we just haven't built enough [homes] to keep up with the population growth and household formation."
The circular incentive here is left unsaid. If a house is an investment, you and every other homeowner has an incentive to keep supply low and demand high. This ultimately drives votes, lobbying, and policies that prevent houses being built. Otherwise you end up with falling rents and stagnating property prices, like in Austin.
Shameless apologia for private equity vultures buying up all the houses, what a terrible article. "Oh but renting costs less so it makes your neighborhood more diverse with more lower-income residents!" Yeah and renting also ensures you stay low-income forever by never getting the opportunity to build any equity. Real 'you'll own nothing and you'll be happy' energy
The opening paragraph is also a laugh. "Daniel Erb became a corporate landlord kind of by accident." Yeah he was an investment banker who decided he wanted to invest in real estate so he decided to call his cousin at BlackRock- woopsie! what a weird accident!
End corporate personhood, end Citizens' United, restore the Tillman Act, and make it illegal for corporations to not be actively divesting from individual residential property units.
A house is a deteriorating pile of lumber on land that always wants to return to nature. Only an insane person would expect it to increase in value over time. The maintenance and taxes alone usually swamp speculative gains.
I would love to think about my own house already, but prices for everything are so high that it’s not possible yet. I rent an apartment, but I was lucky with the owners, who don’t even mind a renovation, and we decided to split the costs in half. Basically, I already gave them a rough estimate I made here https://www.myhomequote.com/bathroom/cost-calculator for what I plan to update. And we also agreed that specialists will handle everything so the quality will be good.
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[ 3.6 ms ] story [ 28.1 ms ] threadWhy and how did that ear worm infect so many people?
The circular incentive here is left unsaid. If a house is an investment, you and every other homeowner has an incentive to keep supply low and demand high. This ultimately drives votes, lobbying, and policies that prevent houses being built. Otherwise you end up with falling rents and stagnating property prices, like in Austin.
https://www.apartmentlist.com/research/cooling-rent-growth-d...
The opening paragraph is also a laugh. "Daniel Erb became a corporate landlord kind of by accident." Yeah he was an investment banker who decided he wanted to invest in real estate so he decided to call his cousin at BlackRock- woopsie! what a weird accident!
Why would anyone sane live near a black neighborhood?