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by linkregister
3607 days ago
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They contribute to the issue of renters being unable to buy. Each of those standalone houses are not available for purchase that otherwise would have been, unless the investor bought the land, applied for residential zoning, and built the property. |
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But on the other hand, they give renters a good deal. Buying at a high price:rent ratio means a low cap rate, which makes for a bad investment. So the landlord is essentially giving ownership returns to the renter, while keeping price risk themselves.
To the extent that rents are also high, this shows that the problem is not, in fact, investors but instead a limited supply of housing.