Comments by "J Garcia" (@jorge1170xyz) on "New Home FIRE SALE In Dallas Texas | This Is CRAZY" video.

@LesHom Landlords don't buy SFR past a certain price point because they just don't pencil out. The sweet spot for them is somewhere around 1600-1800 sf. I know this first hand. So NO landlord is going to buy most of these homes unless they get them for half off in some kind of broad-based shady deal. By shady I mean a government bailout because the builder won't be chopping in half (voluntarily) unless the government gets in the middle first and promises to pass the losses onto the taxpayer (as always). That's unlikely but certainly not out of the realm of possibility anymore! But barring that bailout scenario, the builders will simply be forced to keep slashing prices until they become affordable to "someone", even if it bankrupts them in the process. That would actually be par for the course for many homebuilders.
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There were MANY demand signals sent out by the "covid economy" that were not nearly as real as the homebuilders counted on. People just don't understand the collosal amount of "coastal equity" that was liberated all at once due to the sudden pandemic migrations. Normally, coastal equity is lying dormant, effectively trapped inside the walls of "Aunt Gertrude's "house, where it is barely affecting the economy, but Covid changed all of that (temporarily).
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Blame the government. The government allows false demand signals to be sent out (interest rates, covid policies, moratoria), then bails out the institutions and the more importantly, the banks, which removes the natural free market controls (fear of bankruptcy) that are supposed keep absurd situations like this from getting this far out of hand.
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