A lot of landlords are not wealthy people and often times make less money than the tenant.
This sounds familiar since a lot of current individual landlords bought up properties from other people that couldn’t afford them after the '08 crash, often times minorities that were sometimes purposely sold ARMs. After all, real estate is an investment that can go up or down and is not without risk. A pandemic was hard to see coming, but still, no one buying real estate should assume it will always be profitable, and the Feds did throw a lot of rental assistance out there, which was at least more than some other investment categories received. Not saying landlords (like myself) deserved to get it in the shorts, but this and/or a number of other threats exist to this and other investments.
That said, the shift to more institutionally-held housing is concerning. Maybe there’s another approach that could work better than bailing out competing investor classes.
There’s a peculiar American tendency to think that passing a law will solve a problem overnight. Well, newsflash: people in 1968 thought the Fair Housing Act would abolish exclusionary zoning and integrate the suburbs, yet here we are today with a Black-White homeownership gap that’s even wider. That tendency is even sillier when applied to housing: ~1% of the nation’s housing stock is newly built in any given year, so I’m not sure how we would expect a one-year-old policy to have completely solved a housing crisis that’s decades in the making.
So you’re going to blame a 2020 policy change in one city for things that happened across an entire metro between 2008 - 2019?
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It’s been longer than a year, but I agree. I think it does need more time to play out and keep an eye on before saying policy makers failed, hence why I pointed out the Minny Fed’s tracker. My point is still that this one thing cannot be relied on to solve all of the problems, like some in the real estate industry hope it will, so they can be absolved of having to do anything.
I think I set myself up for an answer: Section 8 vouchers. Steadier income, especially for landlords at price points where their tenants may work in industries with less stability. Section 8 landlords kept getting paid during the pandemic AND helping with the housing crunch at that point on the spectrum.
That was exactly my point. The landlord can’t afford to keep a mortgage when no one is paying rent and they can’t get rid of the tenant - so someone like an investor comes in and buys up the property from the landlord.
Funny, I’ve never met anyone who seriously says this. Can you find a direct quote from someone to that effect?
As a rule, anytime anyone touts a single silver bullet as a panacea, especially one that’s just “pass this one law,” you can probably assume they’re being completely unserious, because that’s just not how a complex world works. Instead, more supply + more subsidies is exactly what I (and any serious housing market analyst) would recommend.
A new comprehensive plan was adopted in 2018, but the actual zoning changes in Minneapolis only took effect in 2020. It takes years to get a real estate development going… heck, these days it seems like it takes years just to get a surveyor to return my calls, and they’re just one of dozens of people to coordinate.
Agreed. Again. No direct quote but I know for a fact that some developers I work with hope that’s where the policy changes end as far as what may impact them in the way of affordable housing and are actively lobbying as such, which isn’t funny. We should probably continue this over on the Affordable Housing thread. My bad.
I thought the $505k for .30 acres on Prospect Ave was over the top. Now with the announcement of the 2 20 story buildings near by I guess not. I did do some research and 1 group has been purchasing properties near me at above market rates. They now own approximately 62 lots/homes between Fayetteville st/Prospect Ave/S Sounder’s and Gilbert Ave. spending over $4million in last year. I’m assuming they are trying to package the properties for development or resale later.
Take a look at this home I found on Realtor.com
11 Prospect Ave, Raleigh
$505,000 · 0beds · 0baths
https://apps.realtor.com/mUAZ/997409b5
My make me move price has just increased. 
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Add it to this set of properties, which has the same registered address of 10014 Chapel Hill Rd in Morrisville
In all, there are 56 homes in this neighborhood with this registered mail address, out of roughly 270 total residential properties (whether vacant or containing a house)
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Oops, add this one (which is clearly linked) and the total comes up to 75
Wish I were a GIS whiz and new how to combine all this into a single map
At any rate, I doubt their plan is to just rent these houses out! Clearly this is assembling properties for a redevelopment. They own more than 1/4 of this entire neighborhood!
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Here’s 132 properties owned by the combination of
FIND AN ACORN: 38 properties, 7.88 ac
GUPTA FAMILY: 29 properties, 6.14 ac
TUCKER FAMILY: 19 properties, 5.63 ac
WINDSOR CREST: 25 properties, 4.67 ac
JENKINS PROPERTIES: 10 properties, 2.39 ac
RIGHT FORCE: 11 properties, 2.22 ac
Not even including all the Baker Roofing assemblage likely up for sale soon after the rezoning.
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Windsor Crest, Find an Acorn, Right force and Dumont are the same group.
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That’s definitely not good news for the people living there that don’t own their land.
I can see how for the downtown south rezoning one could argue that there was no direct resident displacement.
For this one, assuming that company wants to do a big project, there will be population displacement and loss of affordable or at least cheaper housing.
As a resident of this neighborhood I don’t believe there is as much displacement/gentrification as other areas. The purchasing has been going on for at least 20 years. The neighborhood was build for the mill in the1940s. When the parents and children started to pass away. The heirs were contacted for a purchase. I think this is more of the heirs didn’t want the property and took the cash. In regards to the purchaser they made wise investments.
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Gupta is worthless……….
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I honestly thought this house and ADU would sit on the market longer than this, I guess there is a stronger market for ADU’s than I thought.
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I wonder if the 2136ft2 includes the ADU?
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