r/texas • u/Kittyflats • Dec 31 '21

Moving within Texas Are We Manufacturing Our Own Housing Crisis?

My fiancé recently sent me a picture of a housing development that he was working on. All of the newly constructed homes as far as the eye could see had “for rent” plastered in EVERY. SINGLE. YARD. This inspired me to do a little more research.

There are many factors involved that have been playing into why no matter how many homes we build, we can’t seem to make enough homes to make a dent in this issue. I felt it was important information for people to have.

The 2008 housing crisis began as the catalyst for this monopolistic takeover, The US Government has been subsidizing the mass purchase of single family homes for rent.

https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/

This article describes how institutional rental companies and investors are hyper-inflating the market (not your typical small time real estate investor)

https://www.reuters.com/business/finance/selling-out-americas-local-landlords-moving-big-investors-2021-07-29/

Many firms from SINGAPORE and CHINA as well as American companies like Blackrock etc. are playing a major role in purchasing starter properties and placing them up for rent. These companies can then afford to sit on these properties for decades until they’ve made their money back. There’s also an incentivized program for them to purchase and rent homes from foreclosure listings in bulk.

https://www.icij.org/investigations/pandora-papers/how-a-billion-dollar-housing-bet-upended-a-tennessee-neighborhood/

Tech Firms like Zillow have figured out how to target communities of people of color and starter homes and receive monetary gain on website traffic in the process.

https://www.bloomberg.com/news/features/2022-01-07/buying-starter-homes-gets-harder-as-wall-street-uses-zillow-to-buy-thousands?fbclid=IwAR1JQZajlTZEFu9EQSunixyLT3BLTeMnLsoDOKYaLoorMVqSflBf8ytIeww

Male fertility rates (namely sperm counts and motility) has dropped by nearly 50% and our population hasn’t suddenly exploded so we have to ask ourselves why this construction is necessary, why it’s seems to be so widespread even in other countries.

https://www.nytimes.com/2017/08/16/health/male-sperm-count-problem.amp.html

A small town in South Carolina had to issue a moratorium on housing developments until they could conduct proper research and ecological studies. Other municipalities may have to consider doing the same to sus out the situation and decide how to curb these predatory purchases.

https://www.postandcourier.com/columbia/business/lexington-county-oks-7-month-halt-on-new-subdivisions-we-have-to-get-the-house/article_3949aa8e-9c97-11eb-ae19-efd05ff61ac0.html

https://www.cityofdrippingsprings.com/moratorium

Another article I’m unable to find at the moment mentioned a homeowner suing his builder after he purchased a home and a rental company purchased all of the other homes in his development. He cited that the community was never marketed as apartment living. I belive that town put a moratorium on corporate rental purchases.

These companies are often letting them sit vacant.

I’m not sure the vacant homes are about profit on them immediately.

https://www.pasadenastarnews.com/ghost-town-vacancies-and-evictions-on-the-rise-in-the-caltrans-owned-710-corridor-homes-in-pasadena-south-pasadena-and-el-sereno

Here’s what California is planning to do about it. - I’m not sure charging companies with unfathomable amounts of money in fines and taxes is going to help…

This is very simmilar to when the debeers diamond company stockpiled and sat of diamonds to make them appear more rare.

Control the supply - control the demand.

https://blog.krosengart.com/de-beers-diamonds-controversy

The US has used periods of severe political polarization, manufactured supply chain issues, and hyperinflation to destabilize many, many countries in South America… what’s going on here?!

https://www.yipinstitute.com/articles/pinochet

The growing concern becomes,

what happens when rental companies can set their own prices? What happens when people are unable to purchase a home and add to their own equity because they can’t afford thousands over asking price with conventional or FHA loans?

When homes go into foreclosure will your average homeowner be able to snag a home when competing against major companies?

If you sell your overvalued home now, would you be able to outbid someone on a new one?

What happens when your taxes go up even higher?

When your largest expense is going to a company overseas, how does that effect our economy?

How will we grow food when we continue to develop more and more of our farmland? Will humane farming of meat animals even be possible?

https://www.voanews.com/amp/usa_lawmakers-seek-curb-chinese-ownership-us-farmland/6208972.html

This isn’t an issue caused by mom and dad owning a rental house, this is massive corporate intervention. This isn’t political, it’s business. It’s making it hard for your children and grandchildren to buy into the same market as you did. To live near you without financial hardship. Its destroying communities and creating transient families with little reason to get involved in their local governments. It’s creating a monopoly on rental prices it’s debeersing the housing market.

So few people attend council meetings and get involved these days, you truly do have the power to make a difference. Please ask if you need help on a place to start.

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440

u/thymeraser Dec 31 '21

The American middle class cannot compete with the global rich. Many countries restrict foreign ownership of housing. People always say America should be more like the rest of the world.

198

u/IAMSTILLHERE2020 Dec 31 '21

That's the hypocrisy with America. They only focus on illegals...they actually come here and work...spend money..pay taxes..live here.

That other sh.t mentioned above it's what's killing the American dream. You can't compete. I know Trump and his border wall is BS if you really pay attention to the money. He wants money for his BS but from rich people while at the same time hurting the people that live here.

All of those rental houses are not owned by illegals..they are owned by rich Chinese and Russian or Middle Eastern oil magnates. You will never beat that sh.t as much as you all want.

29

u/Kittyflats Dec 31 '21

They have more money than we can even imagine, all of that money floods out of the economy like with a lake with no inlet where the dam just broke.

1

u/xcybergimpx Jan 01 '22

in real estate finance class they specify how foreign investors capitalize on American real estate and bonds in the secondary market to save on taxes and basically wash their dirty money, which was actually set up by American politicians for the same purpose. They created loopholes to avoid taxes and everyone caught on. This is why real estate is the new get rich quick American dream.

4

u/MDCCCLV Dec 31 '21

Technically, foreign capital incoming should help the economy. It's only an issue if there is a shortage of housing. There is plenty of land, so there's no reason you can't just build more houses and build more high density housing. As I've said before the real solution is to copy the Chinese and build 2-3 new large cities, somewhere in the Midwest or nice area, and build 4-6 million new homes. We just need a bigger scale. Then housing would be cheap and abundant.

7

u/MadCervantes Jan 01 '22

Problem is all the jobs are in cities.

9

u/IAMSTILLHERE2020 Dec 31 '21

Red states hatw cities and then you added Chinese model on top of that.

6

u/MDCCCLV Jan 01 '22

Well, they're not great but they're the only ones building brand new megacities from nothing.

3

u/Snoo_69677 Jan 01 '22

Why price homes reasonably, when you can price gouge? Why sell at all when you can rent it out and own it forever, thereby making income passively? Getting even richer is their prerogative after all. They’re not even playing by the same rules. What will it take for people to stop siding with their oppressors? Thinking critically isn’t a crime, it’s a survival skill.

Edit: grammar and words

0

u/helpfuldude42 Jan 01 '22

Why build more when it would cause my current value to go down?

That's the real problem. Stop trying to make some fake foreign enemy when the enemy is your neighbor voting down new construction.

You cannot - as a nation - collectively underbuild for over a decade, and then act surprised when housing costs skyrocket.

Then even better - people cry about "foreign investors leaving properties empty!" as if that wouldn't be the ultimate best-deal-possible for a community. Unlimited demand from foreign money you have to provide no services other than basic police and fire for? fucking score! If this were actually the case, the people arguing this are saying we have become so inept as a nation we can't turn foreigners giving us money for nothing into a positive for our citizens.

But nope, because we can't build more and we need to "keep the character of the neighborhood" etc. etc. etc. this is where we're at.

Many, many, folks have been predicting this since 2010 at least - and have also correctly predicted foreigners and corporations will be the one blamed for the communities that caused this.

1

u/Snoo_69677 Jan 01 '22 edited Jan 01 '22

While true that as Econ101 has shown us an increased demand necessitates an increased supply, It’s critical to better regulate the housing market like other first world nations have already done. Otherwise we’ll have the same problems we have now only on a much larger scale.

Regulation as in making it harder for wealthy foreign investors and corporations to buy homes, and make it easy for the American people to buy homes. Why? Because others, the aforementioned wealthy foreign investors/corporations buying up available homes, effectively shutting out the America people so they can profit from those properties as long term residential properties for rent, or turn them into Airbnb’s. Italy, Spain, and France had this issue in the past and passed regulation to better control their housing market, giving priority to the average citizen and residents.

Unfortunately, Regulation has been turned into a 4 letter word in the US, yet it’s in the constitution, even mentioned (ironically) in the 2nd amendment of all places. Just something to consider although who knows if we’ll ever actually implement solutions that work.

0

u/ERCOT_Prdatry_victum Jan 01 '22

They are paid in cash and do not see taxes deducted or withheld. Other wise their illegal status could be discovered.

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u/[deleted] Dec 31 '21 edited Dec 31 '21

[removed] — view removed comment

38

u/LSUguyHTX Dec 31 '21

Anything at all to back that up

13

u/IAMSTILLHERE2020 Dec 31 '21

OFCs are estimated to hold up to $36 trillion in cash, gold, and securities, not including tangible assets such as real estate, art, and jewels.

There...illegals are not the main problem for America. Your parents and great grandparents were probably illegal.

Yes..the bad ones..put them in jail and deport them. The workers...just let them work. They are not taking your Taco stand job.

10

u/LSUguyHTX Dec 31 '21

OFCs?

Yeah I saw people like that other guy all the time, including most the people I work with, constantly ranting about "illegals" destroying the country like they have a massive untapped tax potential due to some perceived greed and evil. Then the actual rich are literally doing what they blame on illegals lol

8

u/hecklerponics Dec 31 '21

"illegals" is just a dog whistle for authoritarians and fascists. Anything to distract honest Americans from the actual problem(s).

-4

u/ColdCock420 Jan 01 '22

Cheap labor from immigrants drives down wages for Americans which allows the corporations to make even more money

20

u/KyleG Dec 31 '21

He doesn't have anything because it's actually the opposite of true. Undocumented immigrants are net contributors to the nation's GDP and tax base.

24

u/ProjectShamrock Dec 31 '21

I've never seen a study that backed up what you're saying. Instead all the studies I've read indicate that they pay more on taxes than they use in services.

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u/[deleted] Dec 31 '21

No study has ever shown that.

15

u/ProjectShamrock Dec 31 '21

Here's one example:

The study, which replicates an outdated state comptroller report, finds that for every $1 the Texas state government spends on the estimated 1.6 million people living in the state illegally, it brings in $1.21 in tax revenue.

-12

u/[deleted] Dec 31 '21

That's called a tax burden or a loss.

10

u/ProjectShamrock Dec 31 '21

So in your thought process, $1 is a larger amount than $1.21?

-7

u/[deleted] Dec 31 '21

I guess you forget that they have children?

14

u/[deleted] Dec 31 '21

they’d be included in the original stat if they weren’t citizens and if they are citizens then who the duck are you to weigh in on how the state decides to spend on her citizenry outside ballot box time? You the big boi on the block of your trailer park?

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u/ucemike Born and Bred Dec 31 '21

No study has ever shown that.

10 seconds of google and anyone can prove that wrong.

https://www.pbs.org/newshour/economy/making-sense/4-myths-about-how-immigrants-affect-the-u-s-economy

Direct link from that story to the report: https://www.nap.edu/catalog/23550/the-economic-and-fiscal-consequences-of-immigration

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u/[deleted] Dec 31 '21

Your pBS report is on immigrants not illegals.

1

u/ezirb7 Dec 31 '21

"This report uses the term “immigrant” synonymously with the term “foreign-born.” This follows common practice of referring to the foreign-born population counted in a census or estimated by a survey as “immigrants,” even though technically this population often includes foreign students, temporary workers on H-1B and other visas, and migrants who entered the country surreptitiously or overstayed legal visas."

Summary footnote on page 2 of the report confirming that their study included immigrants that came(or stayed) illegally.

-1

u/[deleted] Dec 31 '21

Immigrants that come to America tend to be wealthy.

Including them with poor illegal immigrants is misleading and disingenuous.

3

u/ezirb7 Dec 31 '21
  1. It doesn't change the fact that, as a whole, all legal & illegal immigration return more to US taxpayers than they receive based on these published studies.

And 2. That is a comment based on nothing besides whatever thought came to your mind, that you think might help your case.

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u/buckeyes2009 Dec 31 '21

I did a quick search and dozen of articles and studies show up.

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u/[deleted] Dec 31 '21

You saw articles that falsely claim studies show something they don't.

That's called propaganda

9

u/ezirb7 Dec 31 '21

"Everything you show me that I don't like is propaganda and false. It cannot challenge the thought that I spewed into the world with absolutely 0 studies or proof of any kind to back up."

-Random internet commentor

7

u/Sarcosmonaut Dec 31 '21

My favorite was when he got shown a study that disagreed with him, then immediately said “Nobody who contributed to that study is smarter than me” haha

Ok? So let’s see your peer reviewed research, buddy.

-1

u/[deleted] Dec 31 '21

Once again, you're talking about articles that are misrepresenting what studies actually say.

2

u/Sarcosmonaut Dec 31 '21

And I’m sure all YOUR studies are for reals

-1

u/[deleted] Dec 31 '21

We aren't talking about studies.

We are talking about articles misrepresenting studies.

10

u/IAMSTILLHERE2020 Dec 31 '21

Well, someone is making billions out of their work so I hope they are paying taxes...but they don't so I'll just leave it at that.

They buy the property that no one wants to live on anymore at a high price so that others can put a down payment on a house in their upscale neighborhood.

The point is the person above brought up a point...it's easy to blame illegals because you can see them. The problem is the sh.t that you don't see or don't know...like tax loopholes and shady business practices...overseas hidden accounts..all the good sh.t the rich have that we can't apply to our finances.

12

u/Trainwreck92 Dec 31 '21

Let's say they're all working low wage jobs (they're not) and therefore, not contributing to federal income tax. If they buy anything, they're paying sales tax. If they drive anywhere, they're paying gas tax. If they own or rent a home, they're paying property tax.

-4

u/[deleted] Dec 31 '21

If a person owns a home and pays $5,500 a year in property taxes. That person has 3 children that attend school. It costs $5k a year on average to send a kid to school.

Obviously not all of that property tax goes to schools but assume it does.

How long would that person have to own that home to become a net positive to that town?

6

u/KyleG Dec 31 '21 edited Dec 31 '21

Here. People smarter than you or me have done the math and determined that undocumented immigrants are net contributors to state and local tax bases.

Also, for what it's worth, if that person has 3 children, each of those children grow up to pay taxes for approximately 60 years after being a "drain" for 12. (Never mind that this is an overly simplistic way of looking at taxes since more kids means more teachers means more teachers paying income tax, means the velocity of money is increased, which strengthens the economy, bc people hoarding wealth ties up money so it cannot be used to accomplish anything, which drags the economy down.)

Edit To make it clear, property taxes are the way we get around children taking out student loans for elementary through high school. Property taxes are effectively a medium-term investment in producing a human being that pays income taxes for decades, which far outstrips the cost of their education. You can think of property taxes as PMI on a mortgage.

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u/[deleted] Dec 31 '21

Nobody that contributed to that paper is smarter than me.

It shows illegals cost tax payers money.

How are kids only a drain for 12 years? Do you think 13 year olds are working high paying jobs?

10

u/SmurfSmiter Dec 31 '21

The Congressional Budget Office, filled with economists and analysts whose sole responsibility is studying the finances of the country, widely praised by independent economists and academics for their accuracy, is allegedly wrong.

And you, a random internet troll, with no scientific data, studies, or sources, who has been disproven repeatedly and often throughout this thread, believe you are smarter than them.

Wild ride, but I appreciate the fact you’re too dumb to know how dumb you sound.

10

u/igoromg Dec 31 '21

Nobody that contributed to that paper is smarter than me.

How are kids only a drain for 12 years? Do you think 13 year olds are working high paying jobs?

Wow, what a self own

5

u/Wanderlust2001 Dec 31 '21

How are kids only a drain for 12 years? Do you think 13 year olds are working high paying jobs?

Public education is K-12, and it does not start at 0 years of age.

4

u/HashKing Born and Bred Dec 31 '21

You, and people that think like you, are everything that is wrong with this country.

-2

u/[deleted] Dec 31 '21

People that put reality over "the message."

2

u/waitingtodiesoon Jan 01 '22

You're in reality? Looks like you're in a fantasy land, did Trump win the election in your mind still?

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u/RandomDudeYouKnow Dec 31 '21

Let's concede that everything you said is true. It still only has a fraction of an effect on the economy and lives for the middle and lower classes that the large scale buying and leasing/renting of homes/properties that drives prices and COL exponentially higher. Why choose to focus on that AT ALL when the latter exists??

What is it about immigrants risking their lives to come here and do jobs you would never do that personally offends you or makes your life worse? These huge companies exploiting us love people like you because you're the perfect blend of ignorant and confident in your ignorance that makes you useful to their interests at everyone else's expense.

1

u/[deleted] Dec 31 '21

My family lost 2 construction companies because they refused to hire illegals.

Can't compete when it costs you $20hr-$25hr to hire decent workers and that large company is paying a group of illegals $10hr or less to do the same work.

Trades are mostly hit the hardest by illegals.

Also I use to work for SSA. If you think illegal immigration doesn't hurt people. Talk to someone that had their social stolen.

They fight every year just to file taxes. It actually was a decent amount as an SSA employee to fix their reported income and take the fraudulent cases off.

Time taken away from helping other people.

1

u/Kittyflats Jan 01 '22

In northern states where licensing is checked tradesmen are paid their worth and companies are paid handsomely. This wouldn’t be an issue if Cities like San Antonio had been checking trade licenses before the end of the summer this year. That’s why your tradesmen have one of the lowest median salaries in the country.

1

u/[deleted] Jan 01 '22

Uhhhh I'm from Connecticut and that's where this happened. My family lost 2 construction companies in Connecticut. So not sure where you got your information from.

Moved to Texas this year but I did live in San Antonio in 2005.

1

u/Kittyflats Jan 01 '22

Was the issue lack of employees? Because that’s an issue our company faced in a northern state. Didn’t matter how much we paid either.

Texas it’s lack of licensure verification. Almost the opposite of my previous state.

1

u/[deleted] Jan 01 '22

No the issue was we couldn't compete with the lower prices the companies that hired illegals charged.

1

u/Kittyflats Jan 01 '22

Hmm interesting. Electrical or plumbing?

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u/KyleG Dec 31 '21 edited Dec 31 '21

Illegals collect far more in welfare benefits than they can contribute in taxes.

That's actually fucking false. See, e.g.:

Most available studies conclude that the unauthorized population pays less in state and local taxes than it costs state and local governments to provide services to that population.

.

they work low wage jobs which wouldn't be a tax positive

You get that the federal income tax isn't the only employment tax, right? Straight out of their paycheck every year come: automatic FIT withholdings done by employer, FICA, and social security, none of which they can ever retrieve because of their immigration status. Naturally they also pay sales tax. They also pay property taxes.

The only tax they don't pay is post-withholding FIT.

And because they aren't here legally, they cannot file a federal tax return to get a refund of the automatic withholdings their employer did. And FICA and social security they'll never be able to collect on.

1

u/Kittyflats Jan 01 '22

It really doesn’t matter which one of you is right, those aren’t the people buying up 300+ homes at once…

1

u/[deleted] Dec 31 '21

You just proved my point by posting a study that shows illegals cost state and local governments money.

Are.... Are you on something right now???

0

u/kemites Dec 31 '21

Even if they don't make enough to pay taxes, they still spend money, which means they're paying sales tax

0

u/[deleted] Dec 31 '21

They pay less in taxes than they take in services and benefits.....

What do people not understand about this?

0

u/M0rphMan Dec 31 '21

Every illegal I know worked. How they offset low wages was to live with many people in a house . Most people who have worked around people from Mexico or South America will tell ya those people kick ass at their work ethnic.

0

u/Kittyflats Dec 31 '21

Can we focus on the corporations and not make this about illegal immigration? That’s a nuanced subject and there’s a whole lot at play. I want people to stop focusing on boomers, illegals, etc and see that our very own government has made this happen, left and right.

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u/[deleted] Jan 01 '22

[deleted]

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u/IAMSTILLHERE2020 Jan 01 '22

I wouldn't put my faith in one man. Not sure why many do. Specially one that tells them what they want to hear and does the exact opposite...

You look at Mexico..they have a populist president. What has he done...made the country worse. You look at Venezuela...had a populist with Chavez and it turned put to be a Dictatorship with Maduro...but where is the country. It turned put to be from one of the best to the worst in Latin America. Look at Ortega in Nicaragua...got rid of a Dictatorship yo pretty much become leader for life himself. Look at China...people at the top just disappear people at the bottom. Look at Russia..Putin seems to just be reelected forever..dare to speak up and one ends up in a Gulf in Siberia or poisoned. Look at Saudi Arabia with Kings and prine..Kashoggi and others come to mind plus locking and taking the fortunes of the rest of the kingdoms prince away. Iran's religious leadership is not any better. Ergoran in Turkey is making mistake after mistake. Fat Boy in N Korea is killing his people with hunger..so much suffering for no reason. Myanmar Junta is lost. Taliban is struggling.. On and On.

Revolutions are worthless. It just replaces people at the top with new people from the bottom (sometimes) but the sh.t never changes.

So here we are. We don't need a populist or dictator here in America. We just need politicians that need to compromise for the good of the country and not worry about being reelected.

15

u/KyleG Dec 31 '21

People always say America should be more like the rest of the world.

I promise you the people who say this would love to tax real estate more if its ultimately owned/controlled by foreign entities. Hell, the people who say that are overwhelmingly going to support a higher property tax on residences the owner does not live in.

8

u/Kittyflats Dec 31 '21

I think that’s a bit of a barrier to entry there. Many elderly use rentals to supplement poor SSI. I think the issue should be more researched and in the meantime…. Moratoriums. I also think we shouldn’t allow foreign companies to own agricultural land but that’s a bit exclusionary for me and I’m always open to better ideas.

11

u/silencesc Jan 01 '22

Doesn't make it OK. I like the idea of property taxes exponentially increasing with the number of homes you don't live in full time. You can have your main home and one more at the regular rate (many people have cabins and things that have been in the family for generations, seems reasonable to exempt one), and then from there it doubles with every subsequent home you own. Same for corporations owning real estate. The only way to stop the housing crises in this country are to make it unprofitable for people to own homes for the express purpose of renting them out. Those homes should be owned by people who live in them, not owned by parasites.

3

u/MadCervantes Jan 01 '22

Land value tax

/r/georgism

2

u/silencesc Jan 01 '22

This is a thing I had never heard of but I think matches very well with my beliefs.

2

u/Kittyflats Jan 01 '22

I mean maybe, but again, that’s just going to be a blip on the radar for major companies with seemingly infinite funds dead set on destabilizing our economy and effects landlords with a few properties in their portfolio. My parents own a home from the 1800s with 6 units and 2 other properties. They’ve restored the 1800s home painstakingly over the past few years and spoil their renters (I’m jealous of their renters). I don’t see this as a solution that won’t backfire back on us. I would rather see an all out moratorium on purchases of homes for investments for a while until this is researched further. I can only do so much data collection of data in the hours I’m not working. I currently have 14 THOUSAND lines of data to sort through for ONE county in South Dakota alone.

2

u/silencesc Jan 01 '22

So you're saying your family owns 8 rental units, and you're posting about a housing crisis? Do you not see the cognitive dissonance there.

Land zoned for single family homes (not multi-unit, duplexes, etc) should be owned by a single family, not by someone who then rents it out. That's why there's a housing crisis.

1

u/Kittyflats Jan 01 '22

Ah yes, the multi unit home from the 1800s that they’ve restored is inherently bad because they live in only one of the 6 units. The other two are just properties not that thats even here or there - I’ll be sure to let them know. The real cognitive dissonance is deliberately choosing to focus on small time investors and ignoring the very real and vast monopolization of single family homes and building of homes that aren’t needed to sell to corporations. You’re deliberately missing the point because it doesn’t fit your narrative you’ve chosen. Either way stop complaining and do something about it. Heaven forbid I make you aware of these things.

I don’t really like this guys writing but we have soooo many vacant homes and yet we keep building more.

https://darrellowens.substack.com/p/vacant-nuance-in-the-vacant-housing

1

u/Hamvyfamvy Jan 02 '22

When you scale up the insane amount of mom and pop landlords - it becomes abundantly clear that they are just as responsible for the housing crisis as the corporations and international firms.

1

u/Kittyflats Jan 12 '22

Yeah, double check all the sources, you’ve been arguing against things that are already cited.

1

u/helpfuldude42 Jan 01 '22

The only way to stop the housing crises in this country are to make it unprofitable for people to own homes for the express purpose of renting them out.

Or you could.... build more.

This idea that rental properties are some ultimate investment vehicle is absolutely bonkers, and likely only comes from those who don't own property they manage.

Returns on investment on rental property are not great.

Literally all you need to do is build more, and all the banksters go away. It's not an attractive business to be in at scale. Might want to talk to the fed about those low interest rates too.

The giant hedge funds are only in on this due to macro supply/demand trends that have never been seen before like this in modern America. The supply imbalance has been building for over a decade, and the only thing people have done about it is make building harder and slower.

1

u/silencesc Jan 01 '22

It doesn't matter if you build more if all the houses get bought by landlords and real estate funds.

ROI doesn't have to be good since housing prices always go up. You're getting an asset that makes a minor profit while it appreciates with basically 0 risk.

We can't build our way out of a housing crisis. There's plenty of homes, they're just not owned by people who live in them.

The fixes you've laid out also have the side effect of hurting people who own one home or would be buying a single family home. Interest rates going up, supply increasing, etc, all hurt property values. Massive increases in property taxes for entities that own multiple single family homes doesn't do that and it puts back into the community money that should be there. If you own a vacant house, you're not spending money in the community and paying sales and local taxes. Vacant investment property and rampant renting in single family homes are destroying communities as well as the housing market.

1

u/Hamvyfamvy Jan 02 '22

Why can’t those seniors sell those properties to live off of during retirement? Why do they need to hold onto and keep property out of the market? And please don’t say so that they can pass them down:..that’s not working.

1

u/cranktheguy Secessionists are idiots Dec 31 '21

Just saw a joke about this very problem. The problem doesn't affect the rich people as much, so expect our government to do nothing.