"Homeownership is at its lowest level in 18 years, but housing prices are rising. Why? Because banks are creating real estate scarcity by buying up homes and selectively stalling foreclosures.
CounterPunch contributor Mike Whitneyreminds us that in recent years the Federal Reserve has kept lending rates low. This has allowed Private Equity firms to buy up lots of homes with money they have to pay very little to borrow. The result is the appearance that Americans are buying again. But as the homeownership rate shows, they’re not. Investors are, and this is keeping prices artificially high."
Investors are buying condo units and single family homes and renting them out to people, many of whom have lost their homes to foreclosure. Are we headed toward being a nation of renters instead of homeowners?