OPINION — Real estate investors purchase homes for various reasons, including renting, renovating and adding them back to the housing supply. This dynamic means that investors aim to rent, flip or hold the property while it appreciates in value.
Because real estate is a lucrative investment, individuals and companies acquire houses from homeowners to enhance their portfolios. Real estate will always be in demand as long as the population continues to grow.
The issue is that by purchasing existing homes instead of building new ones, investors increase competition for available properties, potentially driving up prices. The scarcity of homes raises their value, allowing speculators (including large corporations and hedge funds) to profit from the lack of a basic human necessity: shelter.
