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BingBong022 t1_j5vprux wrote

Reply to comment by possiblecoin in WHY ARE HOUSES SO EXPENSIVE by mommy2boy

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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