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Why Home Prices Keep Rising



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Today, first-time home buyers in once-affordable markets have competition from all kinds of sources that didn’t exist a generation ago: from global capital, from all-cash “iBuyers” that size up homes by algorithm, from institutional investors renting single-family homes, from smaller-scale investors running Airbnbs.“It’s really hard for an owner-occupier to compete with the amount of money that’s flowing into this region,” said Dan Immergluck, a professor at Georgia State in Atlanta. There, even in a Sun Belt market with robust new housing construction, supply still can’t keep up with demand.Perhaps at some point in the medium term, the geographic reshuffling of remote workers will settle down, calming price growth in places like Boise, Idaho, and Denver that have been most jolted by it. But the investor purchasers …

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