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Investment banks will just buy up any affordable housing.
by ElectricBoogie 2y ago
Investment banks will just buy up any affordable housing.
- HDThoreaun 2y agoHousing is only a good investment if supply is artificially constrained. If we let people build it banks wont want it
- throwaway1105q 2y agoThat means there is not enough. Housing can't be affordable if a small set of organizations can have it all.
- kylebenzle 2y agoIts just that never before has there been an investment firm large enough to take a big enough share of the largest market in the world, the US housing market.
- throwaway1105q 2y agoThey didn't take a large share of US housing, they took a large share of available housing. Several orders of magnitude difference.
- jkolio 2y agoIf housing prices drop and a crisis ensues, government/central banks lower interest rates and provide stimulus in the form of grants/loans/monetary expansion to prop them up. It becomes clear that the only way to make housing affordable is for authorities to have the political courage to let a crash happen.
- ElectricBoogie 2y ago[flagged]
- kylebenzle 2y agoThe moment the federal government (Federal Reserve), private equity and investment firms like BlackRock started buying up every available home not nailed down it was the beginning of the end for the US consumer.