• 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.