I’m sure most renters would prefer doing the maintenance on their *own* properties, instead; but they’re stuck in rentals because “investors” have pushed prices up so high for dwelling units they didn’t build and have no personal use for.
Actually, the last bubble was created by the government easing restrictions on mortgages TO OWNER-OCCUPANTS, *not investors.* The reason that investors are buying now is that property is actually comparatively cheap in relation to rents.[/quote]
In addition to what SK and ER already pointed out, without speculation on the buyer side, the bubble would never have gotten as big as it did.
Perhaps you weren’t paying attention, but everyone and their grandmother got into flipping and “investing” in real estate, often in multiple cities and states. It was the false demand caused by these speculators — aided 100% by the NINJA/low-down/junk mortgage loans that were **private market** loans — that caused the bubble.
