History and impact of institutional investment in housing in the United States

[1] In 2012, in an effort to create demand, Fannie Mae placed several thousand foreclosed-upon homes for sale in a single transaction.

[3] Before the broad declines in housing prices caused by the financial crisis and recession, relatively high property costs and the decentralized geography[4] of individual homes made them unappealing as an asset class for direct investment.

[1] Broadly, financial professionals and real estate investors, such as Sam Zell, were skeptical that they could function as portfolios, even as some firms began to purchase homes en-masse.

[3][9] Politicians and members of the public have also asserted that these investors charge unfair rents and limit purchasing opportunities for individual families, contributing to a shortage of affordable housing.

[13] Housing researcher Paul Fiorilla, quoted in the Washington Post, stated that it is unlikely that large institutional investors have a significant impact on prices, except for select areas where their concentrations are unusually high: "'Any segment that owns such a small percentage of the market cannot have that much of an impact on prices,' with the possible exception of a handful of communities with a significant concentration of big investors.