[whall6]

Is this housing that they are purchasing just being sat on? I would think that these are being purchased to be rented out (thereby still increasing housing supply), not just held. Homes are depreciating assets.

[stego-tech]

In the sunbelt, they buy it, jack up rents, evict tenants, and basically turbocharge being a slumlord until they find new buyers for more than what they paid. Due to supply constraints, they often succeed in this process (which repeats under new landlords) multiple times before the market becomes too pricey and further increases aren’t tolerated (which is why organization is on the rise - the rent is too damn high for no valid reason). On paper, yes, the homes should devalue, but take a look at places like New England where absolute shitholes can fetch half a million dollars and it becomes clear that property depreciation is happening far slower than pricing inflation.

[amanaplanacanal]

Sounds like they need more housing stock. At some point, if you keep building, it will no longer be profitable for speculators to do that.

[sagarm]

Buildings depreciate, but land does not.