I read a lot about these issues, and this is the clearest thing I've ever read, and yet detailed enough to fully describe a really complicated market that's not well. Bravo on this launch! I'm curious if you think short-term rentals (pre/post pandemic) have a significant impact on this data and/or the supply issue? It's something I worry about a lot here in Long Beach, but like a vacancy tax, I think difficult to regulate an easy solution. I think unfortunately requires even more future production than would have been necessary w/o that new pressure on available housing...something we're obviously not very good at.
One point I see a lot in discourse about vacant properties is the idea of wealthy (usually foreign) investors buying luxury properties and leaving them vacant as investments or very occasionally used pieds-a-terre. This is especially prevalent in discussions I've seen in NY and Canada. Indeed, it's so politically salient that I think now all 3 major national Canadian parties are proposing some sort of foreign buyer restriction in the current election.
I've always thought this was mostly BS and a very small slice of the market, but I'm really curious if you know of some sources on it to quantify the question.
It's a small slice of the market but I heard it a lot about Vancouver. 18 of the 25 largest global private equity firms are American with American private equity taking 9 out of the top 10. I'm sure some foreign investors out there are profiteering off the manufactured housing shortage, just as an domestic investor would, but the emphasis on foreign comes off as impulsive xenophobia and little else. https://twitter.com/IDoTheThinking/status/1384398624914763777?s=20
But in terms of its impacts, I can't think of any reasons off the top of my head why it's inherently bad to prevent like foreign investors from buying real estate. I guess that's just one less speculator.
I read a lot about these issues, and this is the clearest thing I've ever read, and yet detailed enough to fully describe a really complicated market that's not well. Bravo on this launch! I'm curious if you think short-term rentals (pre/post pandemic) have a significant impact on this data and/or the supply issue? It's something I worry about a lot here in Long Beach, but like a vacancy tax, I think difficult to regulate an easy solution. I think unfortunately requires even more future production than would have been necessary w/o that new pressure on available housing...something we're obviously not very good at.
One point I see a lot in discourse about vacant properties is the idea of wealthy (usually foreign) investors buying luxury properties and leaving them vacant as investments or very occasionally used pieds-a-terre. This is especially prevalent in discussions I've seen in NY and Canada. Indeed, it's so politically salient that I think now all 3 major national Canadian parties are proposing some sort of foreign buyer restriction in the current election.
I've always thought this was mostly BS and a very small slice of the market, but I'm really curious if you know of some sources on it to quantify the question.
It's a small slice of the market but I heard it a lot about Vancouver. 18 of the 25 largest global private equity firms are American with American private equity taking 9 out of the top 10. I'm sure some foreign investors out there are profiteering off the manufactured housing shortage, just as an domestic investor would, but the emphasis on foreign comes off as impulsive xenophobia and little else. https://twitter.com/IDoTheThinking/status/1384398624914763777?s=20
But in terms of its impacts, I can't think of any reasons off the top of my head why it's inherently bad to prevent like foreign investors from buying real estate. I guess that's just one less speculator.
Great piece. Stumbled across you on Twitter. Just subscribed to your substack
Thank for the well written, extremely well research post Darrell. I just subscribed!