ADVERTISEMENT

Real estate investor explains why kamala does not understand housing

Don’t get me on a rant. I’ve worked in the housing industry (builder) for almost 30 years (multifamily for last 24) and she gets everything wrong. First and foremost is her attacking institutional ownership of housing units. Almost all rental housing is funded through institutional money, ie, Blackstone, Goldman Sachs, Prudential Carlyle Group, JP Morgan, etc. Putting restrictions on institutional ownership ends the primary funding source. Also, she has floated the idea of national rent control. Rent growth is what drives new development (along with cap rates). No one builds new rental housing in a declining rents environment. We don’t need 10% rent growth a year, but rents can’t be declining or you will create an inventory shortage.
 
Don’t get me on a rant. I’ve worked in the housing industry (builder) for almost 30 years (multifamily for last 24) and she gets everything wrong. First and foremost is her attacking institutional ownership of housing units. Almost all rental housing is funded through institutional money, ie, Blackstone, Goldman Sachs, Prudential Carlyle Group, JP Morgan, etc. Putting restrictions on institutional ownership ends the primary funding source. Also, she has floated the idea of national rent control. Rent growth is what drives new development (along with cap rates). No one builds new rental housing in a declining rents environment. We don’t need 10% rent growth a year, but rents can’t be declining or you will create an inventory shortage.
correct on all. The fed has also seemingly been trying to reduce rent inflation by making it more difficult for developers to build? The supply of new multifamily units hit a peak last quarter. It is going to hit a wall next year, as developers haven't been able to pencil new development for 2 years now. What happens? Outsized rent growth. I'm here for it. It has been a freakin' grind the last two years. Thanks Biden.
 
  • Like
Reactions: MaitlandFloridaDawg
ADVERTISEMENT

Latest posts

ADVERTISEMENT