PE is buying those homes because they have a reasonable hunch that supply will continue to be restricted. That is why homes increase in value -- they are a limited thing, with a lot of demand, which is unable to be satisfied.
The thing that is distorting the housing market is local governments, who are preventing new housing construction. PE (and individuals who own a house!) are benefiting from a market distortion which appears because of restrictions in supply.
The measure that should be taken is excruciatingly simple: let people build houses. Let them build small houses, let them build large houses, let them build apartment buildings, let them build ADUs, let them build a second story. Let people build. that's it.
Comments
PE is buying those homes because they have a reasonable hunch that supply will continue to be restricted. That is why homes increase in value -- they are a limited thing, with a lot of demand, which is unable to be satisfied.
The thing that is distorting the housing market is local governments, who are preventing new housing construction. PE (and individuals who own a house!) are benefiting from a market distortion which appears because of restrictions in supply.
The measure that should be taken is excruciatingly simple: let people build houses. Let them build small houses, let them build large houses, let them build apartment buildings, let them build ADUs, let them build a second story. Let people build. that's it.