Richard T
Well-Known Member
- Mar 25, 2018
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You have some good insights about who builds the new homes. Im looked up what homes large investors are buying, thinking most of the homes were pre existing, whicj is true but im reading some are built to rent. Still, shutting out investors is going to shift rentals to purchasing. Many of those renters though may not qualify. This would help some if there is new supply. Perhaps the bill will allow investors to build new homes for rentals? Plus of course there are mom and pop landlords. I read blackstone, one of the largest investors owns about 1 to 2 percent of the market but they have been selling 20% of their inventory. Could be people just blame them for high prices but the reality is labor, materials, and govt regulations are the real reasons for the price increases. With job losses coming prices could drop. At least Trump is trying to address the shortage.I used to work at this for summer jobs. Most house construction are by family owned businesses, and these usually build houses for individual owners. It's when you move up to the subdivision level that things change. Larger outfits built / build subdivisions full of houses to sell. Our first tip-off that the housing bubble way back was about to burst was unsold houses in subdivisions, or at least that was the case locally. That's the basis of my question.
I don't see this hurting individuals having someone build them a house on their own land, or those that build them. That's a different critter than building subdivisions full of homes for sale. I'm not sure that stepping in to prevent institutions from owning a number of homes would even hurt that, though it might. What it will affect are companies that buy foreclosed homes or homes that come up in tax sales, or just buy groups of homes outright and then rent them.
Is that a good thing or bad? I don't know. The premise seems to be buying up large number of homes to turn into rentals creates a monopoly and rising rent prices. I'm not convince about that, but here we're too rural to have such companies.
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