Re:Why a global recession is inevitable in 2023
by gruez on Sunday January 01, 2023 @05:50PM
(#34211920)
>Non-occupying owners are a factor in supply and demand; banning them (or even just increasing costs on them, e.g., via taxes on long-term vacant units) reduces the number of prospective non-occupying owners buying and causes existing ones to sell.
The problem with this analysis is that it ignores that homes owned by non-occupying owners (ie. landlord) are still occupied by somebody, and is therefore suppressing demand for buying houses. Or put another way, if you got a landlord to sell a home, there would be one more home on the market, but at the same time whoever was previously renting that home will get kicked out and will also need a home, so the net effect on supply/demand is zero.
Non-occupying owners are a factor in supply and demand; banning them (or even just increasing costs on them, e.g., via taxes on long-term vacant units) reduces the number of prospective non-occupying owners buying and causes existing ones to sell. Similar factors applies to owners with residences used exclusively as short-term rentals rather than residences, which I would expect are usually more of an issue than units held vacant by non-occupying owners.
> Given how the overwhelming majority of home purchases are still done by owner occupiers
The share purchased by investors has gone up much higher than usual to 24% of single family homes nationally last year, with Georgia leading the nation at 33%: https://www.pewtrusts.org/en/research-and-analysis/blogs/sta...