I’m usually all for letting institutional investors invest in anything they want. I usually think that private equity firms provide a valuable service to the economy. But institutional investors buying up single family homes is not a good idea. “Creates a Housing Bust” is this article’s way of saying that housing will remain affordable for individuals. Single family home prices started becoming out of reach for the average American. When that happens, we have a huge problem. The American Dream is dead. People become serfs.
Individual families cannot compete against institutional investors who can easily out bid them and are advantaged by not needing mortgages and having in-house insurance, lawyers, contractors, estimators, realtors etc.
Institutional investors in the housing market therefore should have restraints similar to limitations on monopolies for much the same reasons.