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class3shocklast Thursday at 12:41 PM2 repliesview on HN

"Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025"

https://www.cnbc.com/2025/10/07/home-sales-investors-make-up...

As long as we have this focus on using homes as investment and rent prices are kept high through collusion, the industry refusing to build "non-luxury" units, and regulation hurdles stopping new entrants, we will be stuck with this problem.


Replies

MagicMoonlightlast Thursday at 1:19 PM

Rent is high because you aren’t allowed to build in high-demand areas, and it takes a huge amount of capital with limited return.

If your rentoid decides to rip the copper wiring out, or not pay their rent for a year, then you’ve wiped out 10 years of profit.

richwaterlast Thursday at 2:48 PM

> the industry refusing to build "non-luxury" units

This is a government policy failure. Because no one is allowed to build fast enough, there is always a demand for luxury (higher profit) and thus that is what gets built.

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