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How private equity is changing housing

(www.theatlantic.com)
115 points harambae | 2 comments | 09 Dec 25 17:26 UTC | HN request time: 0.003s | source
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christkv ◴[09 Dec 25 17:59 UTC] No.46208173[source]▶
I'm as pro capitalism as it comes but private equity should not be allowed to operate in the consumer housing market. They can develop and sell houses but cannot hold is my point of view.
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ryuhhnn ◴[09 Dec 25 18:10 UTC] No.46208319[source]▶
Not to be pedantic, but this would make you not so "pro capitalism as it comes". The ability to develop and sell houses, but not hold them (in service of rent-seeking) runs contradictory to the very core tenant of capitalism, which is private property and free markets. Socialism and supply/demand-markets are not mutually exclusive; it sounds like you're more amenable to a socialist or mixed-market system than you give yourself credit for.
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1. mylifeandtimes ◴[09 Dec 25 18:47 UTC] No.46208855[source]▶
almost, but rent-seeking is an odd form of capitalism, because in its pure form it isn't providing value.

nothing in the real world is in its pure form, and some business are able to provide value which they cannot charge for because they can rent-seek on other areas, so there is always nuance.

but an economy where rent-seeking is the main path to wealth is an economy in really poor shape.

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2. mjamesaustin ◴[09 Dec 25 19:13 UTC] No.46209211[source]▶
Rent seeking is the end result of capitalism as an economic system. The goal of a capitalist is to accumulate capital (wealth), and rent seeking allows you to do this without expending any effort. Any capitalist acting rationally within the system of capitalism will desire to seek rent.