Part 5/13:
The scarcity of supply is not limited to homes; vehicle prices have also inflated despite chip shortages and factory shutdowns. The scarcity extends to rent prices, with US rents increasing by 11% overall—yet in hot markets like Texas, Florida, and Tennessee, rents have ballooned by up to 25%. First-time homebuyers find it increasingly difficult to enter the market, with institutional investors now buying up homes en masse, pricing out ordinary families.
This trend sparks concern about the sustainability of current housing prices and the risk of a bubble bursting similar to 2008. The role of large investment firms controlling vast portfolios of single-family homes is acknowledged as both a profitable strategy for them and a potential threat to affordable housing.