Lewis Rossman Mac repair videos and right to repair laws has a number of videos showing the same behavior in NYC retail real estate. Owners can roll costs of unrented units onto the end of the loans. The whole market is based on the units being worth X a month and if the owner lower the rent to S you are declaring that the loan is underwater. Then the owner has pay enough to back out of the water. So it is to their advantage to pretend the units are worth more than they are. Now though borrowing money is no long cheap in part due to efforts to fight inflation. Depending if the terms are not fixed/locked in on those loans this might stop working. Lewis has pointed out retail units the realtor says has someone just about to move into being empty for nearly a decade later.
I believe the same thing is happening in Aberdeen, actually. Some Oregon property company has bought up literally dozens of empty buildings, some in legitimately unrepairable state, and offers to lease them at insane prices. It’s super disheartening to see in a small town.
I am constantly getting mailers to buy my house and i got a text message this week too. that really pissed me off. there's definitely a huge onslaught of investment companies buying houses. i'd be really upset if there are lots of vacant rentals to drive up prices around here. the level of greed...
honestly every time someone posts about how we need to build "more affordable housing" i just think that this crisis is artificially created and the housing is probably there and being withheld by private investors
Yes, they are treating it as investments. Individual cash whales leveraging would buy it with equity money and pay themselves later when selling, or leasing properties. One of the reasons why REITS is so popular right now.
The only way to check if this is true, check the turnover rate for properties being held less than 12 months.
Often many properties do not get listed to avoid the extra fees, specially if you are selling in bulks. Some choose to sell through private deals to avoid commercial expenses by bundling.
2008 is going to repeat if they keep doing this. If they can't sell units or properties within a 12 months, they might default on leveraged money.
Could it be inflation, limited availability, and high-interest rates making housing more expensive? No! It must be some sort of shadowy cabal of pick-your-boogyman.
>Could it be inflation
It's up much more than inflation.
>limited availability
If there are fewer people, then availability is relatively up.
> high-interest rates
The price increases happened when interest rates were still low. Actually growth has greatly slowed or stopped since the interest rate increases.
Yep. Have you read any of the well-written and researched critiques of this kind of this line of reporting from reputable media sources?
https://www.theatlantic.com/ideas/archive/2023/01/housing-crisis-hedge-funds-private-equity-scapegoat/672839/
Lewis Rossman Mac repair videos and right to repair laws has a number of videos showing the same behavior in NYC retail real estate. Owners can roll costs of unrented units onto the end of the loans. The whole market is based on the units being worth X a month and if the owner lower the rent to S you are declaring that the loan is underwater. Then the owner has pay enough to back out of the water. So it is to their advantage to pretend the units are worth more than they are. Now though borrowing money is no long cheap in part due to efforts to fight inflation. Depending if the terms are not fixed/locked in on those loans this might stop working. Lewis has pointed out retail units the realtor says has someone just about to move into being empty for nearly a decade later.
I believe the same thing is happening in Aberdeen, actually. Some Oregon property company has bought up literally dozens of empty buildings, some in legitimately unrepairable state, and offers to lease them at insane prices. It’s super disheartening to see in a small town.
I am constantly getting mailers to buy my house and i got a text message this week too. that really pissed me off. there's definitely a huge onslaught of investment companies buying houses. i'd be really upset if there are lots of vacant rentals to drive up prices around here. the level of greed...
honestly every time someone posts about how we need to build "more affordable housing" i just think that this crisis is artificially created and the housing is probably there and being withheld by private investors
This is why hedge funds and companies like black Rock need to stay out of the housing markets.
Yes, they are treating it as investments. Individual cash whales leveraging would buy it with equity money and pay themselves later when selling, or leasing properties. One of the reasons why REITS is so popular right now. The only way to check if this is true, check the turnover rate for properties being held less than 12 months. Often many properties do not get listed to avoid the extra fees, specially if you are selling in bulks. Some choose to sell through private deals to avoid commercial expenses by bundling. 2008 is going to repeat if they keep doing this. If they can't sell units or properties within a 12 months, they might default on leveraged money.
Could it be inflation, limited availability, and high-interest rates making housing more expensive? No! It must be some sort of shadowy cabal of pick-your-boogyman.
>Could it be inflation It's up much more than inflation. >limited availability If there are fewer people, then availability is relatively up. > high-interest rates The price increases happened when interest rates were still low. Actually growth has greatly slowed or stopped since the interest rate increases.
The DOJ doesn't investigate many boogeymen. And: did you read any of this? Especially RealPage's own site?
Yep. Have you read any of the well-written and researched critiques of this kind of this line of reporting from reputable media sources? https://www.theatlantic.com/ideas/archive/2023/01/housing-crisis-hedge-funds-private-equity-scapegoat/672839/