Do Hedge Funds and iBuyer Companies Affect Home Prices?

Do companies like Blackrock and Opendoor as well as the other hedge funds and startup companies make home prices go up? While home prices have risen over the last 6 months, Wall Street hedge funds and ibuyer companies are buying houses in a frenzy and potentially pushing up home prices since there is a much higher demand with all the extra cash in circulation.

Another theory is that all the home buying will cause a crash in the housing market since this is an artificial short-term situation, but in reality these homes being purchased will likely not come back into circulation for a long time. New home sales are also not likely to keep up with demand with a labor shortage and expensive lumber and materials.

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