No Stupid Questions
No such thing. Ask away!
!nostupidquestions is a community dedicated to being helpful and answering each others' questions on various topics.
The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:
Rules (interactive)
Rule 1- All posts must be legitimate questions. All post titles must include a question.
All posts must be legitimate questions, and all post titles must include a question. Questions that are joke or trolling questions, memes, song lyrics as title, etc. are not allowed here. See Rule 6 for all exceptions.
Rule 2- Your question subject cannot be illegal or NSFW material.
Your question subject cannot be illegal or NSFW material. You will be warned first, banned second.
Rule 3- Do not seek mental, medical and professional help here.
Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.
Rule 4- No self promotion or upvote-farming of any kind.
That's it.
Rule 5- No baiting or sealioning or promoting an agenda.
Questions which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.
Rule 6- Regarding META posts and joke questions.
Provided it is about the community itself, you may post non-question posts using the [META] tag on your post title.
On fridays, you are allowed to post meme and troll questions, on the condition that it's in text format only, and conforms with our other rules. These posts MUST include the [NSQ Friday] tag in their title.
If you post a serious question on friday and are looking only for legitimate answers, then please include the [Serious] tag on your post. Irrelevant replies will then be removed by moderators.
Rule 7- You can't intentionally annoy, mock, or harass other members.
If you intentionally annoy, mock, harass, or discriminate against any individual member, you will be removed.
Likewise, if you are a member, sympathiser or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people, and you were provably vocal about your hate, then you will be banned on sight.
Rule 8- All comments should try to stay relevant to their parent content.
Rule 9- Reposts from other platforms are not allowed.
Let everyone have their own content.
Rule 10- Majority of bots aren't allowed to participate here.
Credits
Our breathtaking icon was bestowed upon us by @Cevilia!
The greatest banner of all time: by @TheOneWithTheHair!
view the rest of the comments
They are not being bought by regular people like you - they are being bought by investment companies, hedge funds, and filthy rich investors... all for the the sole purpose of turning them into rentals.
By turning them into rentals, they keep supply low which increases prices... which prevents people from buying, keeping rental demand high, which also lets them charge exorbitant rental rates. They are gaming both sides of the system to ensure that us peasants can be milked dry over a fundamental human need.
That does not add up.
Home rental and ownership are substitutes. If they are renting those homes, they are reducing the demand for ownership. And adding renting unities can not allow them to charge exorbitant rates.
What is keeping those prices high is something else.
This is pretty basic math. Just think about Monopoly (yes, the board game).
Housing is a finite resource. You can buy it or you can rent it. When you buy, you build equity. When you rent, it's pure expenditure.
So what happens when nobody can buy? They are forced to rent. Demand for rentals rises, which allows landlords to raise their rents.
So how does someone with very deep pockets turn this to their advantage?
First, starting one metropolitan area at a time, you buy up everything you can. If you coordinate with other investors, all the better. The goal is to strangle supply for buyers and prevent anyone who can't pay cash upfront from making a purchase. When people are unable to buy, they are forced to rent. So for buyers supply is down and costs are WAY up, and being locked out of buying means demand is up for rentals.
Now, renters also aren't building equity; when means it is perpetually more difficult for them to buy in the future as long as they kept away from that equity-building opportunity.
So as an "investor" you can now have a lot of different levers for manipulating both the supply and demand sides of the housing market. For example... what happens if you have more rental property than people willing to pay your asking price? Won't you be forced to lower your prices? First of all, that rarely happens - because as an investor, you target places that already have reliable, consistent demand (e.g. big cities and metropolitan areas). If you have to occasionally let a property go unoccupied for a few months, it's still no biggie... you keep those prices high and do not, under any circumstances, devalue the market (for your own sake as well as your investment cronies). Now, if there were competition, prices might be driven down... so how do you avoid competition? You collude. But that's illegal... so to avoid accusations of collusion and price fixing, you farm out your rates to a third party service that all your cronies also use: RealPage. It's not collusion or price fixing if you use a middleman. So now you are making bank on rental rates that will see a full return on your (higher than the properties value) investment in 15 years or less.
This has been going on for well over a decade, and these "investors" are now printing money on some of their earliest purchases, with no intention of EVER putting anything back on the market.
TL;DR; Buy all the supply, force plebes to rent, control the prices, profit. Just like Monopoly.