Housing Bubble 2: Return of the Ugly

340 readers

1 users here now

A community for discussing and documenting the second great housing bubble.

founded 7 months ago

MODERATORS

SeattleRain

415

The Stop Wall Street Landlords Act has been introduced in Congress by Rep. Ro Khanna. The bill would raise taxes on the purchase of single family homes by private equity and corporations. (www.notus.org)

submitted 1 month ago* (last edited 1 month ago) by SeattleRain to c/housing_bubble_2

28 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] scutiger 7 points 1 month ago (1 children)

All this does is raise the cost of the homes, and therefore the rent charged by the owners to make it profitable.

[–] [email protected] 2 points 1 month ago (1 children)

Howso? Genuinely curious

[–] scutiger 1 points 1 month ago

It's a pretty simple A>B consequence. If the house is being bought to make a profit on rent, then raising the cost of the house means increasing the cost of the rent. The buyer will have calculated how much rent to charge to make a profit in a given timeframe. None of these businesses is going to buy a house for more money and purposely choose to reduce their profit.