Comment on So many expensive homes
RickRussell_CA@lemmy.world 10 months agoThe “investors” are the buyers/customers, and they aren’t reselling these houses–they’re renting them out.
Renting them out is still selling them, just another kind of selling. The company can only charge rent if there is a renter willing to pay. Again, the buyer determines price – if rent is too high, there will be no renters.
leadore@kbin.social 10 months ago
Renting them out is not selling, it's an ongoing income source for the owner. The renter does not determine the price when the alternative is to move elsewhere or live out of your car. There's simply not enough housing--supply is limited. It's not a simple equation like a factory adjusting the output and price of its widgets. If things were as simple as you say, there wouldn't be such a severe housing crisis in the US. Just search for US housing crisis, there are thousands of articles explaining what's going on.
RickRussell_CA@lemmy.world 10 months ago
The renter is the person who pays the rent, not the person who can’t afford it.
You’re on the right track, though. Over-regulation, opposition to new construction, and opposition to multi-family construction are the reason buyers are willing to pay more and more in HCOL areas.