That's another way of saying the first-time home buyer is up against somebody who already owns half a dozen, or a few hundred, or, coming soon to a real estate market near you, a billion dollars worth of residential housing.
So good luck to you, first-time buyer!
In my opinion, once you've got hedge funds in residential real estate, the only possible people who are going to win are the hedge funds. They are taking advantage of a severe supply shortage caused more than anything else by a complete lack of government housing policy, and they are using that government created crisis to make housing even less affordable while simultaneously making themselves even richer.
Putting an apartment in the basement isn't exactly a fresh idea. It is indeed true that increases rental stock. But what's happening to the for-purchase housing stock? Well, if we all sit on our hands and say nothing and do nothing, it will gradually end up in the hands of the hedge funds.
On the bright side, you won't have to fret about the fact that your kids can never afford to buy a house.
We'll all be renters!
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