Single family housing used to be an dwelling acquired by individuals to live in. Owning a house was a goal of many people in the past. Nowadays, single family housing has become a commodity and is being used to accumulate wealth versus being primarily a dwelling in which people live.
For example, corporations own about 19,000 single family homes in Atlanta, Georgia, controlling as much as 11% of the housing in some neighborhoods. In addition, AirBNB also has contributed to the financialization of housing, which people buying homes solely for the purpose of short term rentals.
Financialization is driving up the price of houses and making many single family homes unaffordable for young buyers. In addition, it is driving up the real estate taxes of many long time homeowners, some of whom are retired and only have fixed income.
Instead of corporate ownership bringing down house prices through scale, it has increased prices by reducing competition and controlling supply.
This is not financial advice. Please consult a professional advisor.
Copyright © 2024 Achievement Catalyst, LLC
Subscribe to My Wealth Builder
No comments:
Post a Comment