Okay, this bullshit. It’s not shareholders who would be negatively affected by this, and it’s not shareholders who are actively working against doing something about the problem. Shareholders are just an easy acceptable target to point your fingers at, whether it makes sense or not.
What needs to be done to tackle the homelessness problem (not the only thing, but probably the most important one) is to zone much, much more land inside or directly next to cities for affordable mid-rise multi-family homes. Guess who is opposed to that and has the power to do something about it? Existing property owners. Specifically owners of detached single family homes. Because doing that would negatively affect their property values. Personally, I think that shouldn’t matter, because what good is living in home that is worth absurd amounts of money on paper going to do you if society is falling apart because of it? But home owners are always massively concerned about their property values and will torpedo anything that might threaten it. Of course, pointing your fingers at home owners is much dicier than pointing them at shareholders, because even in a bubble like this one, you are bound to point at some people here who will feel personally attacked by that…
“Shareholders”, on the other hand, aside from those that are also home owners at the same time, don’t really have much reason to care one way or another about effective projects to reduce homelessness.
Have you heard of REITs? Rent-seeking capitalists have been working together for decades to speculate on housing. Wealthy people have billions and billions of dollars invested in the status quo, and they are quite interested in maintaining their position of power.
Residential REITs can hold virtually any collection of residential rental property, from hundreds of single-family homes to mobile home parks, boutique apartment buildings, or huge multifamily complexes.
All I am saying: I don’t think it’s right to say “REITs typically own commercial real estate not SFH”. Especially when you consider how many SFHs are getting slurped up by private equity. You don’t think they will sell securities based on these new real estate holdings?
Sorry, but its just accurate, its too difficult for a reit to buy SFH because its a bunch of transactions, and they just are not profitable and it becomes a play on interest rates and speculation. Rent on a SFH is much much lower per invested capital to multi families. That is why REITs mainly just do commercial.
The issue with SFH is just how hard and costly it is to build, not competitions with REITs or investors.
Corporations holding residential real estate are a growing part of the problem, but still a small one. The vast majority of single famliy homes are still owned by either their residents or small time, non-incorporated landlords.
Never mind increasing the supply of housing would drive down prices and remove pressure regardless of who owns the existing stock.
the Chinese are corrupting our youth with these TikToks! buying up all the real estate is fine, but we draw the line at people slandering Israel with short-form vertical video.
Hard agree onnmany of your points. Part of the issue with housing is how investment based home ownership is. We need to start looking at those investments as investments - a risk based choice that can be impacted by outside factors because of a change of needs of society. It certainly sucks to be on the loss of returns side if a risky investment… But a society where no one can have a secure place to live is going to eventually destabilize, crash and burn and that need is greater than the need for a profitable portfolio.
One of the many issues with a liberal free market is that we become accustomed to being very callous about the small fry at the bottom and more or less ambivalent or openly hostile about the sharks at the top but it’s the medium sized fish in the middle that nobody wants to hurt. They just “played the game right” not nessisarily taking more than their perceived due and not doing so astronomically better that their plight cannot be empathized with… But if they are the ones who are somehow crashing the ecosystem - even if its through no fault of their own - they will go down with it when it does and if it comes down to eating the costs of keeping everything afloat or everybody loses - well a choice to take everything down with them isn’t a noble one.
When enough people aren’t hitting the very base needs on the Maslow’s Heirachy of needs you start seeing a lot more widespread disordered ability to function and eventually if the course doesn’t properly correct we could see it do so in an abrupt and violent way. That does mean thinking collectively and realizing that the true ethical choice is the one that might hurt you in particular and sacrificing individual gains for the benefits of a community.
Not an easy thing when we have as a society been trained to be fairly misanthopic.
Okay, this bullshit. It’s not shareholders who would be negatively affected by this, and it’s not shareholders who are actively working against doing something about the problem. Shareholders are just an easy acceptable target to point your fingers at, whether it makes sense or not.
What needs to be done to tackle the homelessness problem (not the only thing, but probably the most important one) is to zone much, much more land inside or directly next to cities for affordable mid-rise multi-family homes. Guess who is opposed to that and has the power to do something about it? Existing property owners. Specifically owners of detached single family homes. Because doing that would negatively affect their property values. Personally, I think that shouldn’t matter, because what good is living in home that is worth absurd amounts of money on paper going to do you if society is falling apart because of it? But home owners are always massively concerned about their property values and will torpedo anything that might threaten it. Of course, pointing your fingers at home owners is much dicier than pointing them at shareholders, because even in a bubble like this one, you are bound to point at some people here who will feel personally attacked by that…
“Shareholders”, on the other hand, aside from those that are also home owners at the same time, don’t really have much reason to care one way or another about effective projects to reduce homelessness.
Have you heard of REITs? Rent-seeking capitalists have been working together for decades to speculate on housing. Wealthy people have billions and billions of dollars invested in the status quo, and they are quite interested in maintaining their position of power.
REITs typically own commercial real estate not SFH. The big key is that the government props up real estate companies with low interest rates.
https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/reit/residential-reit/
Commercial real estate includes anything over 4-unit complexes. It really is irrelevant if a individual or a reit owns large apartment complexes.
From the article:
All I am saying: I don’t think it’s right to say “REITs typically own commercial real estate not SFH”. Especially when you consider how many SFHs are getting slurped up by private equity. You don’t think they will sell securities based on these new real estate holdings?
Sorry, but its just accurate, its too difficult for a reit to buy SFH because its a bunch of transactions, and they just are not profitable and it becomes a play on interest rates and speculation. Rent on a SFH is much much lower per invested capital to multi families. That is why REITs mainly just do commercial.
The issue with SFH is just how hard and costly it is to build, not competitions with REITs or investors.
https://www.fool.com/investing/2022/02/05/why-are-reits-going-all-in-on-single-family-rental/
And the percent that I found is they own 1% of SFH rentals. So like I said, REITs mainly just do commercial.
Do people hold shares in the private equity firms buying up all the homes and driving up the housing costs? No no it’s all the NIMBYs fault.
Corporations holding residential real estate are a growing part of the problem, but still a small one. The vast majority of single famliy homes are still owned by either their residents or small time, non-incorporated landlords.
Never mind increasing the supply of housing would drive down prices and remove pressure regardless of who owns the existing stock.
Do private homeowners and small-time landlords generally leave their homes vacant?
Vacant homes are patriotic: foreign investors need somewhere to keep all their freedom too
the Chinese are corrupting our youth with these TikToks! buying up all the real estate is fine, but we draw the line at people slandering Israel with short-form vertical video.
Hard agree onnmany of your points. Part of the issue with housing is how investment based home ownership is. We need to start looking at those investments as investments - a risk based choice that can be impacted by outside factors because of a change of needs of society. It certainly sucks to be on the loss of returns side if a risky investment… But a society where no one can have a secure place to live is going to eventually destabilize, crash and burn and that need is greater than the need for a profitable portfolio.
One of the many issues with a liberal free market is that we become accustomed to being very callous about the small fry at the bottom and more or less ambivalent or openly hostile about the sharks at the top but it’s the medium sized fish in the middle that nobody wants to hurt. They just “played the game right” not nessisarily taking more than their perceived due and not doing so astronomically better that their plight cannot be empathized with… But if they are the ones who are somehow crashing the ecosystem - even if its through no fault of their own - they will go down with it when it does and if it comes down to eating the costs of keeping everything afloat or everybody loses - well a choice to take everything down with them isn’t a noble one.
When enough people aren’t hitting the very base needs on the Maslow’s Heirachy of needs you start seeing a lot more widespread disordered ability to function and eventually if the course doesn’t properly correct we could see it do so in an abrupt and violent way. That does mean thinking collectively and realizing that the true ethical choice is the one that might hurt you in particular and sacrificing individual gains for the benefits of a community.
Not an easy thing when we have as a society been trained to be fairly misanthopic.
NIMBYs basically.