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How is the 2023 housing market DIFFERENT from 2008?
There’s a new player: PRIVATE EQUITY
In the wake of the 08 crisis, private equity started buying up foreclosed residential homes in bulk
What does this mean for the housing market?
1/3
There’s a new player: PRIVATE EQUITY
In the wake of the 08 crisis, private equity started buying up foreclosed residential homes in bulk
What does this mean for the housing market?
1/3
Typically when private equity gets involved, things get messy
In a low rate environment, there’s more leverage, layered financial instruments, and prices inflate
We’ve seen all this in the last decade
There’s more systemic risk, but also increased odds of a bail out
2/3
In a low rate environment, there’s more leverage, layered financial instruments, and prices inflate
We’ve seen all this in the last decade
There’s more systemic risk, but also increased odds of a bail out
2/3
We’re in uncharted territory with US housing
In 2007, our housing market had NEVER seen big National home price declines
In 2023, we’ve never seen what happens in a high rate environment when institutions own swaths of residential properties
We’re about to find out
3/3
In 2007, our housing market had NEVER seen big National home price declines
In 2023, we’ve never seen what happens in a high rate environment when institutions own swaths of residential properties
We’re about to find out
3/3
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