[vanilla_nut]

> PE has nothing to do with it; they are just looking for returns.

If PE comprises 44% of purchased homes, they're increasing demand, and therefore prices. So they have plenty to do with the current housing market.

Don't let idealism and perfection be the enemy of good: PE is currently distorting the housing market. The government should take steps to prevent PE ownership of housing, either through taxation or blanket bans, because civilisation imperils itself if most people can't afford housing.

I'm sure other measures should be taken to prevent housing from ballooning in cost between generations, too -- we probably want to stabilise it to something resembling inflation (but probably not necessarily locked to that measure?). That's for economists to figure out.

All I know is that housing has skyrocketed in price in the last few years to the point where many will never be able to buy, and more and more are priced out of even renting. Kicking PE out of the market may be a bandaid on a bullethole, but it's better than doing nothing.

[mlsu]

PE is buying those homes because they have a reasonable hunch that supply will continue to be restricted. That is why homes increase in value -- they are a limited thing, with a lot of demand, which is unable to be satisfied.

The thing that is distorting the housing market is local governments, who are preventing new housing construction. PE (and individuals who own a house!) are benefiting from a market distortion which appears because of restrictions in supply.

The measure that should be taken is excruciatingly simple: let people build houses. Let them build small houses, let them build large houses, let them build apartment buildings, let them build ADUs, let them build a second story. Let people build. that's it.

[Pxtl]

Then why aren't rents cratering? You think PE isn't renting these homes out?

Supply and demand applies here. These equity firms rent those homes out. So as they amass more and more housing, rent should be going down as there are more rental units on the market.

Unless the problem isn’t the equity firms. If the problem is just that there just isn’t enough housing, then it doesnt matter if you’re looking to buy or rent, somebody is going to outbid you regardless. Which is what is happening.

I’m always confused why people go to such lengths to find anybody to blame rather than the people who actually govern building housing: municipalities.

Either that or somehow we've all collectively suffered brain-damage and no longer know how to build a shelter for less than a $million.