[lifestyleguru]

Every amount of new housing will be purchased by competitive investors. You are heavily underestimating the amount of money unsophisticated investors have, and the psychological effect of owning more and more of territory. Most people will never say no to owning more money and territory.

[epistasis]

So what, they will rent it out? If there's a lot of new housing being rented out, it drives down the rental prices, drives down the purchase prices, etc. Any investor that sits on vacant housing is losing money. When there's extreme shortage landlords can do this because the rise in value happens from the shortage and maybe the rents aren't worth it.

The only cure to investors buying housing is to build enough housing to keep it from being a good investment.

[f6v]

Tax homes that aren’t your primary residence to the point where it’s not a good investment.

[lifestyleguru]

This never works in real economy with real people. Even in Germany with very rigid address registration laws people invest in real estate like there's no tomorrow.

In other countries with lax address registration laws like Poland, real estate can be the only investment vehicle without capital gains tax. Yes, if you sell real estate in Poland after 5 years you pay zero capital gains tax and anyone can buy (please invest and make that mofo pop). Opposite to every other investment vehicle from bonds to shares to even currencies where the capital gains tax exists.

It's just pure rectified human greed.

[littlexsparkee]

You don't tend to see a lot of this in expensive cities - the acquisition cost is too high. Investors tend to buy in lower cost areas.

[runako]

In the context of rentals, wouldn't we expect ~100% of private sector rental units to be purchased, owned, and operated by investors?