[xp84]

People love to say that but they own a very small percentage of housing in reality. What’s driving housing costs is also supply and demand. Especially supply, since we’re not allowed to build any houses in most places people want to live.

[atomicnumber3]

Prices are decided at the margins. Having PE and REITs at every single table, even if their actual ownership is small as a %, makes huge differences.

[Aurornis]

You’re still missing the key point: Hedge funds and REITs aren’t arbitrarily buying housing at any cost.

They are responding to the market. If they overbuy then they will lose money and have to sell at a loss, at which point you could snap up some good deals.

[BobaFloutist]

Which doesn't sound like a free market to me. Capping production to keep asset price high is one of the most straightforward default examples of market-distorting interventions there is.

[cassepipe]

> not allowed to build any houses in most places people want to live

Or to convert them into apartment buildings

[Betelbuddy]

Read your response again. You are reinforcing my argument in case you did not notice...