Comment by class3shock
1 day ago
"Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025"
https://www.cnbc.com/2025/10/07/home-sales-investors-make-up...
As long as we have this focus on using homes as investment and rent prices are kept high through collusion, the industry refusing to build "non-luxury" units, and regulation hurdles stopping new entrants, we will be stuck with this problem.
Rent is high because you aren’t allowed to build in high-demand areas, and it takes a huge amount of capital with limited return.
If your rentoid decides to rip the copper wiring out, or not pay their rent for a year, then you’ve wiped out 10 years of profit.
> the industry refusing to build "non-luxury" units
This is a government policy failure. Because no one is allowed to build fast enough, there is always a demand for luxury (higher profit) and thus that is what gets built.
You have to completely satiate the demand for luxury housing before it becomes "desirable" to build new standard housing. In years past the "starter home" market has completely been reselling past housing, even what was lux at the time of building.
Why would you spend your time and effort building a house that earns you $50k when for the same time and effort you could build a house that earns you $150k?
You'd only do the first if the second wasn't available.
The government in this case being your city council