As observed in both California and Texas the only winners in real estate are people who pay off old mortgages early and corporations. Everybody else loses from runaway pricing, including owners with equity. It’s why so many single family residences end up purchased by corporations to become rental properties, because value is only realized by transaction quantity opposed to equity versus leasing.
> the only winners in real estate are people who pay off old mortgages early and corporations. Everybody else loses from runaway pricing, including owners with equity.
Aren’t people who pay off their mortgages owners of equity?
Everybody paying towards a title has equity irrespective of current ownership. The owners that do not have a mortgage do not suffer the penalties of interest that compounds over time.
> The owners that do not have a mortgage do not suffer the penalties of interest that compounds over time.
they either paid off a mortgage or they bought cash. if they bought cash, the paid an opportunity cost because they could not use that cash to invest elsewhere.