Many of the world’s largest investment firms have launched new funds over the past couple of years aimed at acquiring or building single-family homes to use as rentals. This comes as no surprise considering that the increased cost of buying a home has forced many Americans into being tenants instead of homeowners. Arrived, a young real estate company backed by Amazon.com Inc. founder Jeff Bezos, has just announced its entry into the single-family rental fund space. Arrived currently operates a f
It’s sure beneficial for the rich fucks behind these companies. Everyone else gets fucked.
No, that’s not any of this works. In a free market, it’s entirely possible (and often the case) that both the rich fucks and everyone else benefit.
I recommend Basic Economics by Thomas Sowell and also Poor Economics by Abhijit V. Banerjee.
edit Based on the voting response, I guess I should have suggested something from Dr. Seuss first.
Then pray tell, how is private equity purchasing homes benefiting everyone else?
It increases the overall supply, brings more resources and stability to the housing market. Corporations that specialize in house rental have a opportunity to view market data. All this combined benefits everybody.
Only if these corporations are actually required by regulation to make these houses available for rent, and at market-adequate rates. If a company is as cashed up as this one is likely to be, they’ll only rent to people who are willing to pay higher rents, and if there’s nobody who wants to rent a specific property, they’d rather leave it sitting vacant than lower the rent.
This isn’t hypothetical, it’s happening in practically every property market where wealthy investors are buying up housing stock.
Free market doesn’t exist without regulation
That is true. Protecting the free market is one of the few legitimate roles of the government.