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landowners who aren't overly leveraged (for example investment firms like blackrock who got a lot of "relief" funding during the start of the covid pandemic and were able to buy property with cash) will be able to hold onto their unoccupied properties, and maybe even snap up a few more as prices drop
How much more? All of it.
It's called feudalism and it happened historically. I see no reason why it can't return.
When the crash happens, the government will pump endless money into companies like Blackrock to "safe" the market. They will use it to further consolidate things.
It's robbery, but only if you know whats happening.
They'll have the gall to proclaim the economy saved after prices begin rising again, now with an even worse starting situation than 2008.
When investment firms can use previously purchased properties as collateral to help get more favorable interest rates than a petit boug will get, they kinda have a perpetual money machine.
For the smaller ones, sure, but I'd imagine that the bigger ones keep their cash under their beds and do everything in their power to only use other people's money to makes these kinds of investments. When the credit dries up, they will still have their liquid capital to take advantage of the fire sale on real estate.
That will never happen. Landlords will never start defaulting at high enough rates to matter.
Renters can just get endlessly crushed down. From affording their own place, to having to split a place with a partner, or to having to split a place with roommates, to having to move in with your parents if you have the option to do so, to you and your parents having to move into a cheaper place or move into a place that split with another family, to having to move into your car, to having to move into a tent, etc…..
There are some people already living in all of these arrangements and worse in high rent cities. What happens in the high cost cities always eventually spreads to many of the cities in the US.
Endlessly crushed down. :doomjak:
The future is all the proles living in cars doing gig work on the knifes edge of precarity
And that’s already the present for plenty of people.
The apocalypse comes for us all at different times.
Nah, institutional landlords can just buy up any individual landlords who go bellyup. Additionally, the average prole can afford to spend more on rent, especially if it's ratcheted up slowly to minimize the psychological effect. I imagine we'll see more common acceptance of roommates, as well as multi-generational housing coming back. Also, the meme of queer couples moving in quickly becoming more of a reality amongst the entire population.
I think we're more likely to see a crash from speculative assets that aren't even real, like how in 2008 the mortgage-backed securities were essentially investments on investments on investments on real estate. Knowing the US, it'll also be 2008-esque by the regulatory agency being fully coopted.
Do note that even a spectacular market crash won't cause "the collapse", because "the collapse" won't be some sudden singular event, but rather is a long road of erosion that we've already been heading down for at least 30 years.
I imagine we’ll see more common acceptance of roommates, as well as multi-generational housing coming back
Pretty much. The "college town"/flophouse model of 3-4 people paying $700+ each rather than renting out a 3-4 bedroom house for like $1500 will become typical for people to spend a huge chunk of their adult life, if they just don't live at home forever.
what stops billionaires from buying up all the houses with cash before normal people can get a mortgage from the bank
Rent is getting higher,
wages are staying flat.
Please to put a penny in the old man's hat.
So everyone here needs to learn about the new rental backed security related shit going on with Blackrock, zillow, homie, ect. We are geting another 2008 except with no quaitive easing to save them shit is gonna be brutal this December. There is an episode on this machine kills that explains the situation. Stay safe out save as much food and stuff as you can.
The really funny part is zillow and friends created automated home offering software, that speculated on homes, buying low sell 2 weeks later 70k more, thing is they didn't inspect many of the homes and people with fucked up houses realized this and sold to them. Mean while people with properly maintained homes never sold because they kept geting low balled by the software. So right now they are renting out the homes that aren't to fucked up and trying to recoup loses zillow lost half of its investment fund and has two current law suits from the board. Never forget these are captilists we are dealing with not nobels content with a steady income, gambling is second nature to these people.
Tldr they are speculating on rental backed security now as soon as the intrest rates destroy the ability for most vulnerable business to operate people will stop being able to pay rent, que 2008 all over again except with inflation so if they bail out the investment losers we get really bad actual inflation.
