Re:Facebook reportedly laying off thousands of employees
by mschuster91 on Thursday October 06, 2022 @11:36AM
(#33109610)
> Law of rent gives a theoretical explanation of this, but we can see this empirically too: rents go up in cities after tech companies with high salaries start opening up offices there, not before.
I think it's actually both - when tech companies enter a new town, they tend to hire boatloads of people, placing pressure on local housing markets, and thus raising prices - and landlords or people willing to sell and relocate to take a quick and easy profit know that the new class of people has substantial money to pay.
What I was referring to was stuff like [1] or [2] - investors with no real option to park "dumb money" (aka funds that are structured to invest into low-ish risk markets) have discovered that soaking up residential real estate is a good way to invest that money.
I think it's actually both - when tech companies enter a new town, they tend to hire boatloads of people, placing pressure on local housing markets, and thus raising prices - and landlords or people willing to sell and relocate to take a quick and easy profit know that the new class of people has substantial money to pay.
What I was referring to was stuff like [1] or [2] - investors with no real option to park "dumb money" (aka funds that are structured to invest into low-ish risk markets) have discovered that soaking up residential real estate is a good way to invest that money.
[1] https://www.nytimes.com/2022/04/23/us/corporate-real-estate-...
[2] https://www.businessinsider.com/investors-bought-third-us-ho...