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A comment on Dutch cities want to ban property investors in all neighborhoods. Parent comment

Re:Dutch cities want to ban property investors in all neighb... by IkmoIkmo on Sunday September 05, 2021 @01:12PM (#28425858)
No, that's not the claim. There's waterbed effects. Buy-to-let is done for the purpose of renting. If you take that rental supply away, rental prices go up, and demand for homes go up. Taking away buy-to-let demand thereby creates other demand that buy-to-let was supplying. You're just replacing the demand, not removing it.
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Re:Dutch cities want to ban property investors in all neighb... by skybrian on Sunday September 05, 2021 @01:30PM (#28426008)
Could you spell out why this doesn’t just move demand around? Aren’t the same number of people as before looking for a place to live?

(I also don’t know what you mean by “waterbed.”)

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Re:Dutch cities want to ban property investors in all neighb... by IkmoIkmo on Monday September 06, 2021 @11:13AM (#28434468)
It does just move supply/demand around, that's the waterbed effect.

If you remove buy-to-let investors, then buying a home becomes easier, but not necessarily any cheaper, because the rental supply (from buy-to-let) drops and therefore the prices of rentals go up, thereby increasing the demand for buying a home, countering the lower demand from buy-to-let investors. Demand has been moved around, the shortages are still as big, and there's no significant effect on prices.

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