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A comment on The Rise of the Forever Renter Class. Parent comment

Re:The Rise of the Forever Renter Class by nickff on Tuesday May 07, 2024 @11:41AM (#40287097)
Investment firms have finite purchasing capability, and would certainly stop buying if they expect home prices to drop. In addition, if the houses are expensive to hold, they’ll either be rented out or sold.

Speculation is a symptom of price issues, not a cause.

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Re:The Rise of the Forever Renter Class by forgetfreeman on Tuesday May 07, 2024 @01:11PM (#40288542)
The 2008 crisis would like a word...
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Re:The Rise of the Forever Renter Class by maxsilver on Tuesday May 07, 2024 @03:27PM (#40290412)
The problem is that "investment firms have a finite purchasing capability" is only true over the long term. (like, "many decades" long) Investment firms have effectively unlimited purchasing capability in the medium term (like, for the next 5 years).

Which is why "just build more housing" isn't really working, because you can't just overbuild human demand (we already do that in lots of cities, especially in the midwest), you'd also have to also outbuild the entire public and private investment appetite for housing, which is effectively unlimited at the moment.

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