The ethics of using real estate as an “investment”
Is investing in real estate ethical? I know this is a sensitive topic and can bring out a lot of strong emotions in people, but hear me out first. Before I get started, I want to get something straight. I’m not referring to someone who has one or two different properties and rents them out for some money. I’m not referring to someone who rents out their basement to help pay the bills. I’m referring specifically to individuals and corporations that use real estate as a means of investment.
When someone buys a home with the sole purpose of renting it out and making a return, they are using their capital to purchase and hoard an essential need for human survival.
Dwell on this thought a little bit. Let’s look at some basic human needs apart from shelter. There’s food, clothing, water, electricity, and probably the internet these days. None of these things is free, and I’m not arguing they should be. Someone creates these commodities, and the free market decides the price of each item. However, none of these basic needs is used as “investments.” Sure, you can invest in a food company or a power company. But these industries are highly regulated, and growth is often slow and steady. No one invests in these companies for “hoarding” these commodities.
