Oh its even better than that, the rich can buy and rent places out which eventually gives them enough equitty and income to afford another unaffordable place.
Housing needs to slow down dramatically so wages can catch up. I dont think that will happen, the middle class will be split by those that own their homes and those that dont.
I’ve been tracking mortgage vs rent ratio in tech hubs in case I have to RTO. Mortgages are 2x rents. It’s better in MCOL but it’s still hard to cashflow with current interest rates.
You can say they are paying all cash. That’s too much risk for very low upside.
It's a pretty safe play though. The downside risk is pretty low given supply constraints and if you buy in the right area then nimby neighbors will fight further development for free.
