A TikTok video made the rounds recently claiming that big online real estate companies are buying up properties to jack up prices. What’s really going on?
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Responding to this TikTok realtor: https://www.tiktok.com/@seangotcher/video/7007855978309848325
0:00 – Intro
0:25 – Reacting to viral TikTok video about the housing market
1:00 – Amazon has done this before (AMZN)
2:10 – With enough data, you can undercut your competition
3:45 – Walmart has followed this model as well (WMT)
4:20 – What does this have to do with real estate?
5:30 – Again, with enough user data they can corner the market
6:30 – They can then dictate the price of housing in a neighborhood
7:59 – Targeting users, controlling appraisals
8:44 – Get rich by making things more convenient
10:05 – The same can be done with rental properties
11:00 – Evictions/foreclosures are helping consolidate properties to corporations
11:52 – Zillow and Redfin’s responses (ZG, RDFN)
12:33 – The counter-argument: this isn’t new
13:05 – Too much price manipulation could lead to a housing crisis
13:55 – Housing prices are very high right now
16:00 – Is there actual profit in this business model?
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#stockmarket #housingmarket #realestate