Comment Re:Maybe, just maybe (Score 1) 98
1) Comparing with all home ownership is improper. The only part that matters is % of buying in the active market or constraining the active market. It only needs to be in certain market segments to have a big impact as well. By # of people and not the $ amount within a range; so if they did 100% of mansions it doesn't impact normal people much and if you counted that by # it would be relatively tiny % too. Rental stock is not everything. They also just sit on things too; also they flip and sell in various schemes.
2) Both the mega building corps had CEOs talking about not returning to pre-COVID building rates because the low construction rates boosted their profits; which they said openly. That is not buying, but simply limiting supply to drive up demand = profit.
3) Loans. tons of games around loans. they created the depression in 2008 doing complex fraud games with home loans. Nothing changed except aspects of the game. Huge amount of investment is around the "industry" of home loans/rents/management/building/supplies/insurance....
4) INDIRECT. Wallstreet has been waging a class war for generations and attacking anybody who points this out as "socialist" etc. Class war is older than civilization itself! It never stops. Even with equal demand, wages have been doing DOWN and only masked by technological advancement lowering some prices. It can't lower land prices; but it has taken a little out of construction cost (most savings go to the top, as they always do.) You can be poor and own a smart phone super computer. thank you technology. The richest generation in the USA could only afford 1 TV per house at it's peak. Easily fooling people into thinking things are better because they had more distraction tech; but in real $$$ they are poorer!! It hits when they need a house or healthcare or buy organic food or when gas prices rise a little (like now) then they feel some reality... but don't realize that they are paying for that record number of billionaires out of their pockets. Construction workers and trades can do well, they can have income that didn't get hit as hard by inflation; but they give up a bigger portion to the top than they should or used to. So you can't as easily afford a newly built house...
5) Climate change. resource demand is increasing. more disaster repairs than ever before. it's so bad insurance is pulling out of hard hit areas. Big chunk of investment is in the biggest defenders/creators of climate change. This one is a long term problem. Also indirect but also demand is hiding higher profits exploiting that demand. They will rob desperate people, nations etc. if they can.