Jonkman Microblog
  • Login
Show Navigation
  • Public

    • Public
    • Network
    • Groups
    • Popular
    • People

Conversation

Notices

  1. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Saturday, 31-Dec-2022 14:37:57 EST lnxw48a1 lnxw48a1
    https://www.businessinsider.com/jp-morgan-to-acquire-1-billion-of-single-family-rentals-2022-11 [www businessinsider com]

    Housing prices are already way too high. Why is a regulated financial organization like JP Morgan Chase being allowed to fsck us? !econusa
    In conversation Saturday, 31-Dec-2022 14:37:57 EST from nu.federati.net permalink

    Attachments

    1. JPMorgan is about to spend $1 billion on hundreds of rental homes across the US on the way to becoming a megalandlord
      from Business Insider
      The build-to-rent model has become a go-to solution for developers to offload homes to investors at a time of low homebuying demand and affordability.
    1. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Saturday, 31-Dec-2022 15:16:31 EST lnxw48a1 lnxw48a1
      in reply to
      > The partnership comes at a time when demand for new housing continues to slide, according to data from the Census Bureau. Meanwhile, the National Association of Homebuilders reports that builder confidence is at its lowest level since 2012 because of rising interest rates and construction material costs.

      It isn't that _demand_ for new housing is reducing, it is that housing prices are outpacing the ability of Americans to afford a home. The proper remedy is to reduce prices, so that people can again afford to buy.
      In conversation Saturday, 31-Dec-2022 15:16:31 EST from nu.federati.net permalink
    2. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Saturday, 31-Dec-2022 15:53:05 EST lnxw48a1 lnxw48a1
      in reply to
      > Institutional investors like Fundrise as well as pension funds, and public companies have been steadily acquiring single-family homes to rent for a profit. This has only increased competition for homes at a time when housing affordability is a primary concern for many.

      And that's my issue. With these giant banks propping up prices with these schemes, prices won't return to a natural equilibrium.

      > However, some, like Tomasz Piskorski, a professor of real estate at Columbia Business School, believe that the build-to-rent model is more efficient than the traditional model of selling each newly built home to separate private individual buyers.

      If there were enough homes being built for sale at affordable price points, then one might make this claim with a straight face. But one cannot make this claim while prices are too high for buyers to afford without rolling on the floor laughing one's @$$ off. If one truly believes more rentals are needed, then in addition to "communities" of single-family homes, they should be building apartment complexes, and they should be building in areas where there are already lots of people competing for rentals. Instead, they're trying to prevent the pricing from bringing new home sales down enough to reduce the prices to a reasonable level.

      > He told Insider in early November that the build-to-rent trend is a "useful response to the market's needs."

      He needs to go see a farmer, who should insert a cattle prod up his @$$ and shock the h311 out of him.

      > "Professional rental companies in some ways bring more efficiency and they might help solve affordability problems because of very high mortgage rates right now," Piskorski said. "A lot of people simply cannot afford to buy a home."

      We know how to fix that, though. Let home prices come down far enough and sales will pick up.
      In conversation Saturday, 31-Dec-2022 15:53:05 EST from nu.federati.net permalink
  • Help
  • About
  • FAQ
  • TOS
  • Privacy
  • Source
  • Version
  • Contact

Jonkman Microblog is a social network, courtesy of SOBAC Microcomputer Services. It runs on GNU social, version 1.2.0-beta5, available under the GNU Affero General Public License.

Creative Commons Attribution 3.0 All Jonkman Microblog content and data are available under the Creative Commons Attribution 3.0 license.

Switch to desktop site layout.