Title: Not Sure Bans Fix the Real Problem
I get where you’re coming from, but I think blaming big investors for everything is a bit of an oversimplification. I’ve been in the game for a while, and honestly, most of the properties I’ve bought were the ones regular buyers didn’t even want—fixer-uppers, places with weird layouts, stuff that sat for months. The idea that every investor is swooping in and outbidding families on move-in ready homes just doesn’t match what I see on the ground.
You mentioned Canada’s foreign buyer ban. From what I’ve read, prices dipped a little at first, but then they bounced right back up. People found workarounds, or the demand just shifted to other types of properties. It’s like squeezing a balloon—pressure just moves somewhere else. If you ban corporate buyers from single-family homes, what stops them from buying up duplexes or small apartment buildings? Or just setting up a bunch of shell LLCs? Enforcement gets tricky fast.
And yeah, inventory is the elephant in the room. Even if you kicked every investor out tomorrow, there still aren’t enough homes for everyone who wants one. That’s what’s really driving the “feeding frenzy.” Zoning is a huge part of it—try getting a new development approved in most suburbs and see how far you get. People want more affordable homes, but nobody wants them built in their backyard.
Honestly, I think the focus should be on making it easier to build, not just on who’s allowed to buy. If you really want prices to stabilize, you need more supply, period. Otherwise, you’re just rearranging the deck chairs.
“If you ban corporate buyers from single-family homes, what stops them from buying up duplexes or small apartment buildings? Or just setting up a bunch of shell LLCs? Enforcement gets tricky fast.”
Nailed it. It’s like playing whack-a-mole with regulations—block one hole, and the problem pops up somewhere else. I’ve seen more red tape trying to build a fourplex than I ever did buying a run-down ranch. The real bottleneck is getting shovels in the ground, not who’s holding the deed. Until zoning boards stop treating new housing like it’s radioactive, we’re just spinning our wheels.
I hear you on the enforcement mess. When I was house hunting last year, it felt like half the "private sellers" were actually LLCs with some vague address in Delaware. Even if you ban the big names, they'll just find workarounds unless you overhaul the whole system. Honestly, I’d rather see cities make it easier to build more homes—every open house I went to had a bidding war, and it’s not just because of investors. The supply is just way too tight.
Even if you ban the big names, they'll just find workarounds unless you overhaul the whole system.
That’s the real issue—patchwork bans won’t fix anything. But I wouldn’t downplay the investor impact either. I’ve seen clients get outbid by cash offers from LLCs more than once. Supply matters, but so does who’s buying.
I’ve seen clients get outbid by cash offers from LLCs more than once.
That’s been my experience too—regular buyers just can’t compete with all-cash, no-contingency offers. Even if you tweak the rules, those big investors have teams of lawyers to find loopholes. Maybe a better credit system for first-time buyers would help level the playing field a bit? It’s not a silver bullet, but it could make a difference for some folks.
