Partially true. This did happen more or less during the great recession - private equity companies (ie colony capital, blackstone, etc) raised specific funds a

Partially true. This did happen more or less during the great recession - private equity companies (ie colony capital, blackstone, etc) raised specific funds and created corps to buy foreclosed housing and rented them out. However, typically they will want to realize a liquidity event (sale) which is why sometimes those homes were rent-to-own. Since the market picked back (thanks to the fed for buying trillions in mortgage backed securities), they were able to sell in a good market. So usually want to sell your investment at some point to realize some capital gains, not hold forever. Two opposing forces (outside of supply / demand) will drive pricing: > how much the fed buys in mortgage backed securities > the economy being strong enough to raise real wages of home buyers so they can buy expensive homes Given that the fed bought assets so aggressively in such a short period of time (raising its balance sheet from ~$4.5T to $7T in H1 of 2020) in response to covid [1], my bet is that housing prices will not come down as long as the fed is run by boomers (they can't afford to have their net worth go down bc they are also economically fragile). [1] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...