ImDaChineze t1_j0053mk wrote on December 13, 2022 at 2:52 AM

Reply to comment by DrHandBanana in I’m Cornelius Hurley, academic, lawyer, 14-year director of a Federal Home Loan Bank. Ask me anything about the FHLBs. by ProfBU

There are too many incentives for investment managers to buy up housing and close to zero regulations against them.

These managers amassing mass blocks of housing collect all sorts of management fees to help investors who want the attractive yields of real estate ownership without dealing in the day to day aspects of being a landlord. By centralizing all of the operational aspects of being a landlord, they’ve created an investable asset class with high returns and a huge underlying industry able to support a ton of investment.

Now, everyone from pensions to insurance to individual investors get to have the upside of owning houses without the pesky downsides of chasing tenants for rent or evicting them.

Augain82 t1_j02ddmm wrote on December 13, 2022 at 4:18 PM

To further add to your point, the home buying system has now become automated. These companies that are buying up houses have found a model that cuts down on their costs and increases their bottom line. Technology has made it feasible to out bid the average home buyer.

https://www.vice.com/amp/en/article/dy7eaw/robot-landlords-are-buying-up-houses