Big Investors Boosting Home Prices, and Not Everyone’s Pleased
A major factor in the price rise is hedge funds, private equity firms and other large investors. They’ve moved aggressively into the residential market over the last two years, buying tens of thousands of distressed properties, often at bargain prices.
Some analysts are worried those bulk purchases will leave middle-class buyers out in the cold.
One place investors have been very active is Florida’s Palm Beach County. Jeff Lichtenstein is a real estate agent there and he’s busy. He’s listing and selling homes at a pace reminiscent of the go-go days of the last real estate boom back in 2005 and 2006. “I have 19 or 20 under contract right now, which is the most I’ve had at any given time,” he says.