Comment on @jack_toohey on why the housing crisis is not caused by migration

<- View Parent
eureka@aussie.zone ⁨1⁩ ⁨day⁩ ago

I had a quick search, this isn’t something I’ve properly looked into, but empty homes are valuable:

Speculative real estate investment can lead to homes being left vacant for quite long periods of time, as in some cases this helps to preserve their condition for resale and saves the investor from having to shell out for upkeep and maintenance. In cities with high-value real-estate like Melbourne, Sydney, New York and London, housing prices have risen much faster than wages, and many investors know that simply buying and holding property can be a more effective investment strategy than buying to rent. As Karl Fitzgerald of the Australian non-profit Grounded Community Land Trusts and member of GEHN notes:

‘If you consider that there’s been an 18% increase in Australian property values this year, that’s triple the rent you could make, so why bother renting it out?’ (GEHN 2022)

Jack Portman - “What is the value in an empty home? A perspective from Action on Empty Homes and the Global Empty Homes Network” www.tandfonline.com/doi/…/13604813.2024.2390754#d…

source
Sort:hotnewtop