Do investors negatively distort the market?
Hi BP,
Do investors, purchasing a property with the sole expectation of renting it out, make it harder for owner-occupants to find affordable housing?
This is the question that came up from a family member. He lives in Washington, DC, and sees how hard it is to find an affordable place to buy. He thinks this is primarily due to real estate investors driving up prices, hence his reluctance to ever purchase an investment property.
For me, I know there are many benefits from investing -- improving property and overall values after a fix-and-flip, or that some people simply aren't ready or willing to buy and would prefer to rent. And I think any price increase would be minimal and offset by easier financing for owner-occupants. But in the spirit of being open-minded, are there some studies out there that show the impact (positive and negative) of real estate investors?