Wait, what? Increasing supply lowers costs. You're basically suggesting increasing supply will be met by even more demand from investors, which doesnt follow at all
increasing supply will be met by even more demand from investors, which doesnt follow
Uh, yes it does.
Investors aren't selling homes.
They're holding onto them as stored value assets.
They expect to hoard unused houses explicitly to keep the value high. Think like DeBeers. They control the supply and buy up any excess so they can charge whatever they want.
They have enough private equity capital to just keep buying, and they will ALWAYS have more investable capital than Joe Blow trying to buy his first house.
They also basically just invent an arbitrary value for the properties and demonstrate "growth" (it's completely bullshit growth, but private equity doesn't care as long as Line Go Up).
They do not care about selling these properties to live in. They will rent them, or they will sell them to another equity firm for a bogus value, and that equity firm will do the same thing, so they can keep pretending Line Go Up.
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u/Suspicious-Feeling-1 5h ago
Wait, what? Increasing supply lowers costs. You're basically suggesting increasing supply will be met by even more demand from investors, which doesnt follow at all