Are Institutions Harming The Market?
On today’s show we are talking about the merits of large scale landlords on the housing market. The affordable housing advocates are highly critical of institutional buyers removing inventory from the market by competing with buyers for single family homes. These big bad landlords are making huge profits on the back of these poor tenants.
As interest rates increase, it is true that many first time buyers will get shut out of the market at least for a while.
But if someone has the monthly income to rent, presumably that exact same property would cost the same amount of money to hold it if it was owner occupied versus owned by a landlord.
The intrinsic cost of a given property should be very similar regardless who owns it.
On today’s show we are looking that basic premise and asking:
1) is it true, or at least is it substantially true such that the differences between an individual buyer and an institutional buyer don’t materially affect the dynamics of the housing market?
Host: Victor Menasce