Re:How Zillow's homebuying scheme lost $881M
by mywittyname on Friday March 18, 2022 @02:13PM
(#30725611)
> The scary thing is that it's easy to see how something how like this could drive a market boom and bust cycle.
It would take a lot more than a billion dollars to make a dent in the national housing market. Total housing sales in Feb22 amounted to $161 billion.
That's enough to make a temporary splash in a rural market, but Zillow would need to spend 100x more than what they lost to even move the needle. And spend 10000x as much to really drive a boom/bust cycle nationally.
It would take a lot more than a billion dollars to make a dent in the national housing market. Total housing sales in Feb22 amounted to $161 billion.
That's enough to make a temporary splash in a rural market, but Zillow would need to spend 100x more than what they lost to even move the needle. And spend 10000x as much to really drive a boom/bust cycle nationally.