Wonder why investors have been snapping up single family homes? This graph from Mike Mandel might explain a little.
It’s probably worth noting that the gains from home ownership reflect only prices here, not the favorable tax advantages or, if you were an investor and bought wisely positive cash flow.
I tend to think that today’s investors in single family homes are going to have to sit for a long time before they recognize any sizable price appreciation. On the other hand, unless they’re brain dead, they have probably been able to pick up homes which generate pretty nice cash.