this post was submitted on 16 Aug 2023
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In my area of the country (mid-south), home prices were pretty low until the last couple of years. I bought a 3000 ft² house in 2020 for <100k in a city. Now, a similar sized house is going for >500k. A lot of homes were bought by individuals and property management companies who did some cosmetic renovations then raised rents sometimes by >200%.
Other properties are bought and left vacant on purpose to make sure the renters don't have other places to go.
I'm not sure what you're missing. Speculation only happens when a market is already tight and profit can be basically guaranteed. Build more and this incentive goes away.
No one is keeping houses vacant to turn away paying renters. That's nonsense.