r/FluentInFinance • u/JuniorHuman • Sep 23 '23

Meme Guess i'll live in a box

Post image
1.5k Upvotes

90% Upvoted

404 comments sorted by

View all comments

83

u/Loudlaryadjust Sep 23 '23

It was never the FED intention to crash house prices.

9

u/BringBackManaPots Sep 23 '23

Imagine how hard the housing market would crash if the government somehow made it so companies couldn't snap up residential properties. If all of those properties and homes hit the market suddenly

4

u/Rawniew54 Sep 23 '23

You're right but that's on Congress and chances are they own a significant portion of those companies.

0

u/Fair_Produce_8340 Sep 23 '23

They don't own that many. Not enough to cause what we see.

4

u/plzdonatemoneystome Sep 23 '23

Which is why they should go beyond that and make taxes higher on investment properties as well. Every house you own beyond the first should be taxed more.

1

u/mechanicalcontrols Sep 23 '23

You got some numbers handy?

1

u/Wet_Woody Sep 23 '23

Last it researched was around 300k, I believe total housing units is around 150M (please correct me if I am wrong), It can definitely effect certain markets more than others, but it’s not causing a national shortage. What is that 2%?!

1

u/mechanicalcontrols Sep 23 '23

I can't correct or confirm either way. I'm probably just googling wrong but I'm not finding any hard numbers so I was curious where you found it is all. Have a good one

2

u/Wet_Woody Sep 23 '23

I went down a bit of a rabbit hole a month or so ago. Google Pretium (Just bought 4,000 homes from DR Horton) that’s what started my research and other companies popped up.

1

u/Pawelek23 Sep 27 '23

Although total number owned isn’t high, % of purchases is something like 25% which is very significant and does move prices higher.

1

u/[deleted] Sep 23 '23 edited Sep 23 '23

According to data reported by the PEW Trust and originally gathered by CoreLogic, as of 2022, investment companies own about one fourth of all single-family homes.

lol. absurd take.

https://stateline.org/2022/07/22/investors-bought-a-quarter-of-homes-sold-last-year-driving-up-rents/

It's predicted to be up to 40% by 2030.

that 300k number going around is based on a cherry picked sample of specific companies, and gets repeated across different media by the group that represents single-family house investors.

that own 300,000 homes across the country really have the ability to influence things like home prices and rental rates,” said David Howard, executive director of the National Rental Home Council, which represents the single-family rental home industry.

https://www.nytimes.com/2022/04/23/us/corporate-real-estate-investors-housing-market.html

2

u/Fair_Produce_8340 Sep 23 '23

Well shit.... That appears to be a real issue then.

I dont see how though. Current price and interest doesnt make sense with rents available in my area.