This whole housing market explosion (in which 20% of home sales nationally are investments) wreaks of 'wallstreet' buying properties and bundling them into investment portfolios for funds or other investors to purchase. What the heck game is actually going on? This is going to have absolutely epic implications in the future, and it's not going to be pretty (and it already is very ugly for so many people.)
What are investors buying that is perpetuating investments into the housing and rental markets?
- Thread starter Aisone
- Start date
Stimulus Checks is fueling the housing market.
LOL a couple thousand dollars over a year ago isn't going to help someone buy muchless afford a home that's twice the price it was a couple years ago.
That excuse was a good diversion in the beginning, but someone is investing huge in this and, as usual, most likely laying it off on someone else somehow.
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There's only so many places you can put the unbelievable amount of cash to work out there, so housing was the next logical choice for some of the big guys. Blackrock and Vanguard alone have nearly $20T under mgmt - that's trillion. The broader equity market has averaged real returns of mid single digits over the last century and housing is in the same range - with even more stability. The rise of late is more about lack of inventory and increased material costs than other factors.
The younger generation has looked more negatively on home ownership, which has given an opening to the corporate buyers.
The younger generation has looked more negatively on home ownership, which has given an opening to the corporate buyers.
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RE + stock markets/small business are among the best ways to prosper in US.
Some combine them; farmers can do well with combines also.
Radio said investors now make up about 29% of US RE market now =rentals, specs, flips......................................................................................
You're saying DESPITE the younger generation buying less homes, prices are still soaring because lack of inventory and inflation. And inflation couldn't remotely account for increase in non-new build homes (and would only to a limited degree for new build homes.) There is no new opening for corporate buyers - these investment firms are bidding up these prices and collapsing inventories throughout the country. This is 'logical'? This has all the markings of it simply being the latest big money attempt to game a market. But the longterm implications of this game is going to be monumental and catastrophic imo.
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Makes no difference whether a corporate entity owns those properties or individuals own multiple of them for investment purposes.
The moment housing was allowed to be taken as a speculative investment instrument is when the downside started. That was a long time ago.
The moment housing was allowed to be taken as a speculative investment instrument is when the downside started. That was a long time ago.
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IN mid south, US, RE supply[ MLS listings....] has been real small/real small ; doesnt take Wall Street to up spike this 2021/2022 market / normal demand/normal buys do that.
It should be obvious.
To most folks, RE has always been the best path to wealth. I have even heard top level investment executives echo this in private. Outside the US, no other asset class comes close as their financial markets are trash and currency, unreliable.
The idea is ingrained. With too much free money, liquidity and a lack of return on safe investments, what else could have possibly happened?
To most folks, RE has always been the best path to wealth. I have even heard top level investment executives echo this in private. Outside the US, no other asset class comes close as their financial markets are trash and currency, unreliable.
The idea is ingrained. With too much free money, liquidity and a lack of return on safe investments, what else could have possibly happened?
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RE has generally been a good investment, but of course it has been lately with what seems to be new trillions pouring into it. Those investment numbers are staggering. Rentals used to be where people who couldn't buy a home would turn to. Now with rental prices surging, so many people are going to get priced out decent living options. I wouldn't even be surprised if these new investments are also going into buying mobile home and trailer parks around the country.