“The problem today is that neither individual homebuyers nor even larger commercial builders drive ‘market forces.’ Instead, the market for real estate construction comprises managers of hedge funds and speculators who buy buildings and homes as rental properties. They are waiting for the value of the buildings to rise, as they had before the 2008 collapse. By early 2014, these high-volume buyers will most likely be near their short-term return on investment (ROI) with their investors and therefore looking to sell.”
-A modest proposal for remaking America through construction and real estate, from LA Review of Books. Read more on housing in the Longreads Archive.
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