Comment on Why is the price of real estate rising so dramatically?

ryathal@sh.itjust.works ⁨16⁩ ⁨hours⁩ ago

  1. Land is scarce where people want to live, it’s always going to get more expensive as more people want to live there.
  2. Low interest rates caused large investment firms to seek higher rates by being rental owners instead of mortgage owners. This forced up rent to make returns on investment. As the realities of being a landlord are realized this might get better.
  3. New building nationally wasn’t keeping pace pre covid, but it was by a negligible amount. Post covid, new building is years behind where it needs to be.
  4. High interest rates now has effectively got people stuck in existing homes, because a new mortgage would be double the payment.
  5. Inflation happened, 20% of the increase since 2020 is just inflation.
  6. Short term rentals have devasted the residential market in popular tourist areas, forcing them to charge hotel taxes and follow those regulations is hopefully going to start correcting this.

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