So I'm really enjoying this, but I'm curious if the investor ban simulation views rent and supply effects in the short term or the long term, and how they're defining short and long term for the purpose of the discussion?
This is a sleight of hand meant to mask rentier extraction as “efficiency.”
adding supply under debt-driven ownership structures doesn’t make things cheaper, it just expands the base of assets generating rent and interest income
Institutional acquisition(BlackRock in my area as well) pushes up land prices, which flow into mortgage debt, not into productive investment. So even if rent temporarily dips, debt service and property taxes tied to inflated land values rise, meaning the renter’s long-term cost of living still climbs (they know this) that’s no welfare gain in the end
So I'm really enjoying this, but I'm curious if the investor ban simulation views rent and supply effects in the short term or the long term, and how they're defining short and long term for the purpose of the discussion?
This is a sleight of hand meant to mask rentier extraction as “efficiency.”
adding supply under debt-driven ownership structures doesn’t make things cheaper, it just expands the base of assets generating rent and interest income
Institutional acquisition(BlackRock in my area as well) pushes up land prices, which flow into mortgage debt, not into productive investment. So even if rent temporarily dips, debt service and property taxes tied to inflated land values rise, meaning the renter’s long-term cost of living still climbs (they know this) that’s no welfare gain in the end