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I assure you tax treatment/subsidies are not what make my business possible. The retail prices (comps) for the neighborhood the product exists in, drives profits. Yes a house is just a product (other than my own home)

You have to live in a house for two years before you can avoid capital gains tax. Otherwise, as an Investor, I am paying capital gains unless I do a 1031 exchange (meaning I am just delaying the inevitable)

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Yes, but you can pass those houses onto your children (and they can pass to theirs, etc.), and keep avoiding taxes until it actually sells (that's when there actually is a gain). So, just never sell it and keep it in the family and never pay capital gains.

That's a lot of capital to keep locked up in an investment that doesn't pay off until one or more generations later.

some people buy homes to live in, not just as an investment

They're bringing in a nice cash flow with tenants, and appreciating. You just put 30% down, so not much "tied up"

Gotcha, I was envisioning commercial development, as the article talked about private equity buying thousands of homes.

A friend runs syndicates for commercial properties like hotels and apartment complexes. His product is essentially depreciation credits, and buildings are like a byproduct.

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