Many of the world’s largest investment firms have launched new funds over the past couple of years aimed at acquiring or building single-family homes to use as rentals. This comes as no surprise considering that the increased cost of buying a home has forced many Americans into being tenants instead of homeowners. Arrived, a young real estate company backed by Amazon.com Inc. founder Jeff Bezos, has just announced its entry into the single-family rental fund space. Arrived currently operates a f
    • MajorHavoc@lemmy.world
      11·
      1 year ago

      True. Outright rent-seeking is certainly typically safer than flipping.

      I think the risks that crushed Zillow are still relevant: Trying to do something at national scale requires a situation where lack of local knowledge is unnecessary. And housing has proven a few times not to be that.

      I would bet on Amazon to come up with an “investment” scheme that externalizes the extreme local market risks to their “partners”.

        • MajorHavoc@lemmy.world
          1·
          1 year ago

          Agreed on all points.

          Some communities pass laws to keep investor landlords out entirely.

          Amazon buying rental property might also be ruled illegal under current anti-trust laws.

          I don’t know the best approach, but I don’t expect good things to come from Amazon getting into the landlord business.

            • MajorHavoc@lemmy.world
              1·
              1 year ago

              Good point, but really beside the point.

              Anyone who thinks Bezos’ controlling interests in both companies won’t cause public harm should consider my fine selection of bridges that I’m selling for ridiculous bargains.