johnnybazooka

What do you mean by product skill?

To add to that, university endowments are also a big component of VCs, in addition to pension funds.

I think a couple years ago a judge ordered Berekely to release the fund performance figures for the VCs they had money in, and most of them don't even do well (measured in terms of IRR).

"mere $200 million"

lol ok

See that's my point... there is only so much land in the middle of NYC that is zoned right for condos, so the competition really won't increase.

Also, real estate in general is a very capital intensive industry, which takes out 99% of competition anyways. How many people are there that can raise $200 million to build a project. Not many.

Right, it makes existing infrastructure more affordable. But for new infrastructure, any income generated is priced into the value, making the "profit" from renting it out less substantial.

There is a fundamental problem with your argument.

The condos and apartments people rent out on Airbnb are built by developers.

So as Airbnb becomes more popular, developers will recognize the ability for tenants to profit from renting out units. In response, they will try to capture that profit on the front end by raising the selling point of the unit.

Practically, the increases in property value Airbnb generates will ultimately flow back to developers, and make housing less affordable.

It's a double whammy for the people that are buying units and not renting them out, because they now have to more for units that don't want to rent out.

Edit: Also, the U.S. real estate stock depreciates by 3% annually, so it ultimately will have to be replaced with new units.