> Cost to borrow money (for an institutional investor) and buy a home with that money, is generating a positive return. As long as that is true, they will conti

> Cost to borrow money (for an institutional investor) and buy a home with that money, is generating a positive return. As long as that is true, they will continue purchasing homes at a rapid rate. This is a monetary issue, money should not be available to buy homes like this. This is incompetence and negligence from the financial elite governing our nation. It is not strictly a monetary problem but you are close. It is a allocation of money problem. When the FED increases supply of money and/or lowers interest rates, people think that this will help the poorest get on the debt and get themselves going. But reality is that it is the rich (and institutions) that have assets good enough for collateralization. Which means that in a low interest rate environment the rich (and institutions) can borrow MUCH MORE than the poor, more easily. It plays out very simply. Banks literally salivate at lending to the rich in a low interest rate environment because the counterparty risk is super low. Just take the free money. With poor people the counterparty risk does not disappear with low interest rates. Over decades, the rich (or institutions) keep getting richer with the same mechanism. It's a misallocation. When the FED reduces rates, the rate reduction should not allow the rich to borrow at lower rates. The inequality is spiraling out of control at this point.