Comment by kelseyfrog 7 hours ago
Why would they be demolished(a debit) when they could be sold(a credit)? 34% of people live in rental housing. If those units flooded the market, it'd be much easier to save up to buy while living with parents or friends.
It's really hard to get a mortgage for multiple people that aren't married.
Basically if you and 3 friends want to buy a 4-plex for 400k you would assume the bank would just make sure each person could afford 100k, they don't. Instead the bank will ensure each person individually has sufficient financial resources to afford a 400k home.
That and converting a 4 plex into condos doesn't make financial sense when you could just demolish it and build townhomes.
But 31% of rentals are SFRs. Surely that's enough to make an impact, no?
If everyone's saving up to buy then the prices will go up. This is a demand problem, not a landlord problem. Too much demand vs supply makes prices go up. Far, far too much demand vs supply means landlords step in and invest, and divide properties into smaller pieces to rebalance supply to demand, or as much as is in each one's power.