Imagine an extreme scenario, let’s say a foreign RE investment group buy all the rental apartment complex near SDSU, and then raise rent by 20%. We would have a rental shortage near SDSU instantly and local students would need to pay more to be able to live near the school and have less money to spend on other items.
At the same time, this money would go back to the foreign countries, their children and trigger down. Wealth transferred outside. Who gets negatively impactd? U.S of A folks.
Why I speak of this? Because I know it’s happening in San Diego and other parts of CA. CAR won’t complain because their goal is to sell houses. Doesn’t matter who buy it as long as someone buy it.
Just look at Vancouver, people from Hong Kong ‘invest’ in it and now they are the biggest landlord in Vancouver. What happened next? Housing price tripled. Local buyers forced to move out from the good neighborhoods in Vancouver to somewhere remote.
