Corporate Housing Ownership
The cluster discusses corporations and large investors buying single-family homes to rent out, debating impacts on housing prices, affordability, individual homeownership, and whether to restrict such ownership.
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not everywhere. and there's some evidence that big corps are buying up houses and becoming mega-rentiers. always a chance these companies could collapse and then the market would be flooded with houses as they liquidate.
Relax, you are mixing apples and oranges.Many companies, large multinationals to small startups don't want to OWN property. It's capital intensive for them, they want to rent. Does Starbucks own its coffee shops? No. Can't you see how renting property is a service to many?Stop being apocalyptic simply because someone owns property. Take a chill pill.
Make corporate rental investment unaffordable. I heard majority of single family homes are owned by corporations. Is that true?
When corporations are built around buying and renting out residential homes?
I'd claim the big issue is Blackrock coming in and buying all the available housing and renting it out for the max amount possible. If you restrict individuals, but not corporations, you create a worse problem!
Exactly. Nobody wants to hear this, because we're all Temporarily Embarrassed Landlords, but if a corporation buying 100 houses to sit on and extract rent is bad (or good), then 100 individuals each buying 1 house to sit on and extract rent must be equally bad (or good).
It seems that the article was not even read.There are private apartments (owned by companies), not houses (owned by individuals) for this purpose.The argument is that this behavior inflates prices and pushes out families who want to own, making them stay in an eternal renting cycle.
presumably the OP meant take it off the ownership market, and replace with rental. AKA, the OP assumes that owning is the end all and be all, and a corp that purchases the house and never sell means there will be less ownership by the individual.
What are peoples concerns here?3 companies owning 11% of the single family homes available for rent in a metro area doesn't seem like a massive concentration of ownership. Some people prefer to rent rather than buy. Some people don't have savings for a down payment. Someone needs to own the houses that these people rent.There are probably economies of scale to managing rental properties (e.g. larger companies can hire full time maintenance staff). Some people prefer to rent from
I have no argument really in favor of corporate ownership, but I don't find the arguments against convincing in terms of helping normal people.Rental housing is an important part of housing, and giving access to the schools in suburbs through rental opportunities seems good to me. The people I know who have rented a SFH in my area have had better experiences with corporate landlords than home-owning landlords because the home-owning landlords frequently evict their tenants so that a rela