Did Single-Family Property Investors Drive Housing into Crisis?

By apparently misreporting their intentions to occupy the single-family properties they were buying, the higher degree of leverage investors took on for their home property purchases directly contributed to higher rates of default during the current housing market crisis, according to a new study from Federal Reserve Bank of New York.

The study, “Real Estate Investors, the Leverage Cycle, and the Housing Market Crisis,” explores a mostly undocumented…
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