Re:Investors bought a record share of U.S. homes in 2021
by adam_arthur on Thursday February 17, 2022 @01:26PM
(#30376696)
On a country wide scale, housing units to households is in line with historical norms.
1.1 housing units per household. Same as year 2000. But you're right that local areas could have worse ratios.
Re:Investors bought a record share of U.S. homes in 2021
by llamataboot on Thursday February 17, 2022 @06:23PM
(#30380118)
rental units are not the same as a house you want to buy, even regardless of location and amenities and size etc
Re:Investors bought a record share of U.S. homes in 2021
by adam_arthur on Thursday February 17, 2022 @09:38PM
(#30381527)
Housing is fungible. Lower rents decrease demand for purchasing and vice versa. There will of course be a subset of people who will exclusively only buy regardless of price, but in aggregate the principle applies
Not if there’s a supply shortage. If there is a supply shortage then that necessarily means that some people will be priced out without corresponding downward price movement.
10 people, 5 houses, the market-clearing price is the 5th highest price any of the people are willing to pay. Remove the 5 people on the low end and that’s still the market-clearing price.
The equilibriating force of price increases causing demand to drop causing downward price pressure only keeps prices in equilibrium around the market-clearing price. Supply shortages shift the supply curve and cause the market-clearing price itself to move. The equilibriating force that should address this is that increased prices should incentivize new supply to be created from sources that were previously uneconomical, but the supply shortage exists because of legal restrictions that distort the market.