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possiblecoin t1_j5vl4g0 wrote

What I don't understand is that RIs population is basically unchanged from 2000, so where is the demand coming from? Now it's possible there has been a structural housing deficit all that time, but what is different about this moment in time that it is rising to the level of a "crisis"? Even if the demand is coming from outside the state (Boston commuters?) it's still being offset by people leaving the state, because, again, the population isn't changing. Unless the overall housing stock has eroded I don't understand how the state as a whole can be too expensive. Certain pockets, sure, we'd all love to live on Rumstick Point or Ocean Drive, but the whole state? I'm not saying it's not true, necessarily, but there's a piece of the puzzle I'm missing.

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RIFCSUPERFAN t1_j613smj wrote

In 2023 RI was listed as top 3 states for influx movers. Add that with well to do young professionals commuting into Boston who are gladly willing to pay the cheap price of 650k for a home(compared to greater boston home prices) and you have a huge problem.

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BingBong022 t1_j5vprux wrote

Corporations buying up Real estate

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possiblecoin t1_j5vqwz7 wrote

I've heard that argument, although I haven't seen any empirical evidence. And that could cause distortions in the rental market if they control enough supply to distort pricing, but it doesn't explain housing. A corporation isn't going to buy a house and then let it sit for a few years in the hopes it appreciates, the carrying costs are too high. At most they might make some quick improvements and try to flip, but that's still dependent upon demand.

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DesignRemote t1_j5x4kbq wrote

Banks figured out you make more renting the house out forever as opposed to selling it

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BingBong022 t1_j5vr7jr wrote

Foreign investors and locals do that all the time buy houses and have them sit empty. Price appreciates and they sell in a year or 3

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possiblecoin t1_j5vri72 wrote

In New York City, maybe. I find it hard to believe that's a big poblem in Providence or Cranston.

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ProvBroker t1_j5ytecv wrote

You don’t need more people for more demand. The amount of money in the system had ballooned and the cost of that money had plummeted. All of easily accessible cash stokes demand. Same amount of people, the activity increases to match the opportunities of cheap money.

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