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What prevents companies from buying them all?
The problem right now is the incentives.
Banks are incentivised to buy homes. It increases the homes for sale and reduces supply.
Banks are deincentivized from building homes. It increases supply.
Increase supply, and the whole first bullet crumbles. They'll run out of money eventually, and if they don't, at least we have more homes on the market to balance out rent.
They won’t run out of money lmfao. This solves nothing.
Chinese developers did
https://www.cnn.com/2023/08/18/investing/china-evergrande-bankruptcy-explained/index.html
No they didn’t.
The same thing that prevents companies from buying. Literally every house available right now - it's not worth it
This is such a weird question. It's like asking what happens if companies buy all farmland. It's just so implausible lol
https://www.axios.com/2022/02/18/investors-homes-wealth-families
You have good points, but this issue isnt really acting like normal markets. Renting space in this desperate market is a lot more like a cartel than simple supply and demand seems to suggest, and:
https://nypost.com/2021/04/20/an-office-vacancy-crisis-is-haunting-nyc-but-owners-remain-bullish/
There is also nothing stopping banks from simply holding onto these long term assets, asking for the right price, rather than following the market and lowering the asking price.
Increasing supply removes the incentive to hold them as long term assets
Yes. Oh. I don't think I had a disagreement with you, but rather misunderstood you.