Zillow has listed 93% of the hundreds of Phoenix homes it owns at a loss

Re:Zillow has listed 93% of the hundreds of Phoenix homes it... by gzer0 on Sunday October 31, 2021 @05:22PM (#29060571)

A large portion of homes are being bought and listed as rental properties. And whilst the overwhelming majority are purchased by individual investors, a non-negligible amount is via LLCs, LLPs, and corporations.

This has the same effect of complete removal from the supply-side as the home is no longer considered part of the 'for-sale' pool.

This leads to artificially inflated prices for homes that are actually for sale, since rental properties are removed from that pool.

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Re:Zillow has listed 93% of the hundreds of Phoenix homes it... by indymike on Sunday October 31, 2021 @05:41PM (#29060720)

>And whilst the overwhelming majority are purchased by individual investors, a non-negligible amount is via LLCs, LLPs, and corporations.

Most of those LLCs and LLPs will be smaller investors. I would not think of buying a rental an not using an LLC - even if it would be for just one rental. I'm not sure the kind of entity that owns a property matters all that much. For $150 plus a little extra paperwork, a LLC really does de-risk the rental business.

[ Parent | on HN ]