re: What should be done about investors buying up homes?

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Truth. Forcing entities to sell their property is not the way.

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It would also cause an 08 level catastrophe unless done over maybe a 10 year span

Well I’m going to continue to do it as long as it makes financial sense.

The federal government should have absolutely nothing to do with this.


This is a local issue. And there is nothing preventing local governments from restricting corporate home ownership.

But, we already set the precedent with 2008. We'll end up holding our noses and bailing out the Blackrocks of the world because they will claim that not doing so would be worse because the virus there will spread to the greater market. So we have to make them bigger or worse things will happen.....and the taxpayer will underwrite it

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if younger people can’t buy homes because of jacked up prices

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What is the correct price for a house in this market?

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IMO should be a ban or moratorium at the very least on non-U.S. citizens and foreign corporations buying homes

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On a side note, fedgov is trying to crack down on foreign-owned companies meddling in our economy, potentially to regulate this very act, and people on here melted about the very easy additional information necessary for returns. So, good luck with that

Governments all over the world have tried to regulate residential housing into being more affordable. It doesn't work. The fantasy of doing nothing is the solution but our population won't allow it.

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That's a bit of apples and oranges though. AirBnB was almost exclusively temporary/vacation rentals (nights, weekends, a week or two), not permanent/semi-permanent rentals where people lived.

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What's the difference? Both were corporate efforts to prevent an individual/family from using that property as a home, instead relying on rentals.

The type of rental/commercial activity is largely irrelevant.

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Also, I don't think the majority of AirBnB rentals were large real estate companies managing thousands of permanent, but private individuals with single to multiple properties.

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Again, how will a bubble popping change things, especially compared to individuals/families seeking non-commercial use of the same properties in the same markets?

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If the area starts going downhill, they can just flip them to Section 8 and hold them indefinitely

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This won't work in areas where they jacked the prices up. They will still have to pay the loans/financing they rely upon to operate and the loss of revenue (going from private to Section 8) will crush them. So they'll be upside down, with a declining asset, and decreased revenue.

Or, if it's a fund without debt/leverage somehow, they're going to have negative returns for years. How is that going to be sustainable? How long can most of these funds hold out?

Blackrock is one thing, but last I heard, they had already read the tea leaves and stopped investing in this area.

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Thus you have market forces being thwarted by government's social welfare intervention.

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I'm not a fan of Section 8, obviously.

However, it's not typically so easy to flip that switch, especially on the massive scale you're discussing. Yeah it's a boogeyman, but in practicality it's going to be impossible across the board. The areas that are going to be hit the hardest, have the most expensive property, and only a % of those properties (given basic demo/population) can even be Section 8.

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Yes. When the market flips, the institutional investors will be exponentially screwed.

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I agree but the counterargument is that there is no promise the market will flip and potential home buyers miss out on years of equity-building opportunity waiting on a market flip that might never happen.

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I agree but the counterargument is that there is no promise the market will flip and potential home buyers miss out on years of equity-building opportunity waiting on a market flip that might never happen.

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The market has to eventually flip. Not just talking as of in terms of a bubble, but prices have to go up and down.

And I'm not speaking about this in terms of private individuals making the decision, just the impact on the big corporate RE ventures.