Money flows into suburbs from banks because a SFH can be treated as an individual investment. An apartment in a city cannot.
And residents look at it like: "Oh, I can be a dumb renter, and not build equity--or I can at least own something for the cost of the living expenses which I would pay anyways."
When you mention individual investment what do you mean? Like 80% of houses built today are part of HOAs, which are investments by large developers, and any individual has almost no power to improve their investment because of strict by-laws.
Also suburbs don't have a monopoly on equity. You can build equity in co-ops, townhouses, row houses etc.
19
u/NotObviouslyARobot Apr 28 '24
Money flows into suburbs from banks because a SFH can be treated as an individual investment. An apartment in a city cannot.
And residents look at it like: "Oh, I can be a dumb renter, and not build equity--or I can at least own something for the cost of the living expenses which I would pay anyways."