But, it’s not even debatable that it decreases the affordability of those homes.
that's Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!). of course it doesn't.
1. the demand for housing is unchanged, the supply is unchanged.
2. it does not impose a restriction on the construction of new houses.
3. corporations own a tiny proportion of sfhs.
why do people get irrationally outraged at the idea of sfhs as rentals, but do not feel the same about multifamily housing? it's very strange.
Yes, agree with all this.
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1. The demand for housing is unchanged, the supply is unchanged. - that's just simply not true in some parts of the country. Yes, there is a finite # of home buyers in the US, but when corporations decided to get in the mix the demand for housing drastically increases when 1 entity wants to buy 100's of homes.
2.
it does not impose a restriction on the construction of new houses. - No it doesn't, but it does take time and land to build, there are only so many builders, and the price of homes will continue to rise with demand. Also, many builders aren't even building homes for less than $300K any longer in major metros.
3.
corporations own a tiny proportion of sfhs - again, that's simply not true. In DFW they purchased 43% of homes sold in 2021 and that trend still continues.
why do people get irrationally outraged at the idea of sfhs as rentals, but do not feel the same about multifamily housing? - I'm not outraged, but I feel bad for my child who will have to work/save much harder than we all did to buy a home. Also, sfhs is a means of generating wealth.
All these have a trickle down effect. If a corp buys a bunch of homes in a neighborhood with cash and above asking price, ALL homes in neighborhood just became more expensive. Once home prices/rents increase, apartments raise their prices as well. The DTI new homebuyers/renters are on the hook for increases a bunch.
https://cdn.nar.realtor/sites/default/files/documents/2022-impact-of-institutional-buyers-on-home-sales-and-single-family-rentals-05-12-2022.pdfhttps://www.tpr.org/business/2022-06-14/investors-bought-nearly-a-third-of-all-homes-in-texas-last-year"Nearly a third of all homes sold in Texas last year went to a company or corporation that paid in cash, according to a report from the National Association of Realtors."
https://housemethod.com/blog/are-big-companies-buying-up-single-family-homes/"According to data reported by the PEW Trust and originally gathered by CoreLogic, as of 2022, investment companies take up about a quarter of the single-family home market. Specifically, investor purchases accounted for 22% of all American homes in 2022. This number slightly decreased from last year (2021), which sat at 24%, with 90,215 homes in the third quarter alone. Over the last decade, the number of investors purchasing homes has increased from 10% to 15% each year, except for 2020 to 2021, which, according to a study by Redfin, saw an increase of over 80%. So, yes, investment and residential real estate companies are purchasing more and more American homes each year."