While I agree with your logic completly there are other factors that play into a home buyer that are not in play with an investor the bigest one being emotion a

While I agree with your logic completly there are other factors that play into a home buyer that are not in play with an investor the bigest one being emotion and sociatal norms. I could not begin to fathom how many times in my life I heard growing up, boy when you become a man buy a house, it's the American dream, they are not making any more land. Real estate always goes up. The advice like hey you could get trapped in a life sucking death trap was not dispensed until late in the bubble and now freely flows in the crash. So you have people that have no sophistication in investment purchasing homes because the common mantra was what could possibly go wrong. You have skyrocketing home prices and people panicking that they are going to be forever left out of the greatness of home-ownership that they have heard about their entire life which all culminates in disaster for the home owner. I find it hard not to blame the bankers, when you have a party that clearly lacks the knowledge to understand the realities of the market and a party that clearly knows that they are inflating the market then you have to place blame on the party that willfully acted while possessing full knowledge. Where the homeowners greedy sure, and I would venture to guess that the number of homeowners that did so out of greed where high but they where also making decisions on information that was reinforced over years of indoctrination information that the bankers willfully exploited with full knowledge that the realities of the market where in sharp contrast to the homeowner perceived reality of what homeownership meant. So while you logic is correct it omits some very important facts the biggest one being that the product was not sold to an investor but the average person.