> Because you need them to outlay capital now in return for likely future profits? That's literally what investing is.
A builder is paid to build. They profit if their revenue is greater than their costs. That is certainly possible even if housing isn’t an investment vehicle.
The makers of candy bars manage to profit yet I doubt many people buy them as investments.
> Builder != Developer. The builder is a service provider and definitely doesn't finance construction.
What in my post doesn’t apply for developers exactly? They finance construction if they expect to profit. They can profit even if the final product later doesn’t increase in value. In fact, why would they see that profit anyway? Any increase in value would end up in the final owner’s pocket not the developer.
A builder is paid to build. They profit if their revenue is greater than their costs. That is certainly possible even if housing isn’t an investment vehicle.
The makers of candy bars manage to profit yet I doubt many people buy them as investments.