>>510813755This is exactly it. The market has become a self inflating scam because of those dominating it. As long as hedge funds and other investment vehicles are continued to be allowed to own single family homes, the housing situation will never correct.
Hedge funds buy many single family homes, causes supply to drop therefore prices to rise, hedge funds then buy more houses with the newfound "equity" they just developed out of thin air creating more demand, and the price continues to rise. More often than not, them renting these houses as air-bnbs a couple times a year will cover the property taxes in most jurisdictions.
I believe the correct way to address this without flat out preventing these firms from owning single family homes is to establish an exponentially increasing property tax rate with the more houses you own. Starting after something like 3 or 5 houses (to still allow for one to enjoy a vacation house or in law storage), every house after that will have an increasingly huge tax burden that removes any benefit to you owning it. This would correct the market overnight, granted the correction would be a huge wide ranging panic and possible stock market crash, but it would also fix the fake inflated market. When the facade crashes down, it'll bring the whole unearned money market with it and I'm all for it!
