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Comment by testbjjl | Hacker News Reader

> It's somewhat alarming to see that companies (owned by a very small slice of society) producing these AI thingies (whose current economic is questionable value and actual future potential is up to hot debate)

Some might conclude the same for funds (hedge funds/private equity) and housing.

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AI consumes about 30% of DRAM wafers. PE owns about .5% of single family homes.

It going to be misleading to look at the fraction and I think it's misleading to only look at PE investors. It's more important to look at the fraction of demand for homes that are on the market.

Investors bought 1/3 of the US homes sold in 2023. This is, I think, quite alarming, especially since a small amount of extra demand can have a large effect on prices.

That 1/3rd is almost all small time flippers who renovate properties before resale.

Good point. Flippers shouldn't be included in that stat. But I doubt that it's "almost all".

The statistic that matters is the ratio of owner occupied to rented single family homes.

this would need some source citation. There are plenty of investors on the market holding rental properties.

I'm confused. When you say that hedge funds "price out" regular people, what do you mean? Price out of what?

Of the housing market? That seems to be what GP said, doesn’t it?

They create demand which increases price. Plus they can afford to hold their asset longer, this reducing supply.

Stop right there you terrorist antifa leftie commie scum! You are being arrested for thought crime!

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