Well that is exactly what happened last time it imploded - private equity sitting on loads of cash waiting for an opportunity got one. They were buying houses

Well that is exactly what happened last time it imploded - private equity sitting on loads of cash waiting for an opportunity got one. They were buying houses like they came in 24-packs from Costco. I'm not sure what the "split" among institutional investors is, but afaik most of them want the houses to rent them and create a revenue stream, not flip them for a one-time profit. So inflation doesn't really help them either; e.g. it means they pay more taxes, and requires more upfront capital for the same revenue stream unless the rent they can charge increases in lock-step % (which maybe it does). The fact that the underlying asset appreciates in value is more than just gravy, but don't think it's the point for them. I think they are doing it because it is almost an obvious investment from a risk-return profile compared to other options.