Plain English with Derek Thompson cover image

"The Weirdest Housing Market in Recent History"

Plain English with Derek Thompson

NOTE

Impact of Institutional Buyers on Housing Affordability

The prolonged period of low mortgage rates and the presence of institutional buyers, such as private equity firms and big banks, are contributing factors to the current housing affordability crisis. Homeowners are holding onto their properties instead of selling them, leading to reduced inventory and increased competition. The narrative of institutional buyers exacerbating unaffordability by purchasing homes and renting them out, rather than selling to potential buyers, is a significant concern in the housing market.

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