• SpaceCowboy@lemmy.ca
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    1 year ago

    Yet another negative side effect of supply side economics. More money in the investor class than there are good investments. So they dump money in real estate which drives up the price.

    We have to wait for the people that love Reagan out of nostalgia to die off. Then we can tax the bloated investor class and have a healthier economy.

    • ryathal@sh.itjust.works
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      1 year ago

      It’s more a symptom of artificially low interest rates. A lot of the money currently buying up places to rent them would happily buy mortgage backed securities instead, but that market bottomed out when rates were 2-3%, so they bought property directly instead.

      It’s going to take time, but eventually some companies will prefer the low risk 7-10% MBS vs managing property to get roughly the same return if you’re lucky.