Taking (corporate) buyers out of the market is what reducing demand means.
The corporate buyers are just buying the houses to rent out. They are switching the home from owned to rented. The corporation isn’t a living person who lives in the house they bought. They only impact demand in the amount they switch, which only matters if you’re splitting up owned vs rented, because that’s what they change. If you’re combining all housing demand to be all people who need housing, the corporations have zero demand for housing, they don’t impact overall demand at all.
Not to mention the corporate buyers are the ones buying up real estate so they can profit off the difference between the rent they charge and the loans they pay off. They’re very much unnecessary middlemen. I’m not saying smaller landlords don’t do that too, but corporate involvement is one of the reasons investor buying power so heavily outweighs resident buying power.
There’s always a profit motive at any level, prices are going to be a result of market forces, we don’t give them extra because they’re a corporation. If a corporation is acting monopolistically, that should obviously be banned, and it is.
There’s a larger structural question on whether ALL landlording is “unnecessary middlemen” but that as a solution would be such a huge change and involve seizing property and such that I think that’s outside the realm of the possible. If we’re allowing some landlords, profit is just going to be part of rental payments as it already is.
The corporate buyers are just buying the houses to rent out. They are switching the home from owned to rented. The corporation isn’t a living person who lives in the house they bought. They only impact demand in the amount they switch, which only matters if you’re splitting up owned vs rented, because that’s what they change. If you’re combining all housing demand to be all people who need housing, the corporations have zero demand for housing, they don’t impact overall demand at all.
There’s always a profit motive at any level, prices are going to be a result of market forces, we don’t give them extra because they’re a corporation. If a corporation is acting monopolistically, that should obviously be banned, and it is.
There’s a larger structural question on whether ALL landlording is “unnecessary middlemen” but that as a solution would be such a huge change and involve seizing property and such that I think that’s outside the realm of the possible. If we’re allowing some landlords, profit is just going to be part of rental payments as it already is.