Private equity isn’t the whole problem, but its role needs to be understood.Gov. Greg Abbott dropped into the housing crisis in an important way last week, when he pledged to push for legislation to address the problem of corporate investors snatching up so many homes it is distorting the market.
Abbott was reacting to a viral post that claimed private equity firms purchased 44% of single-homes in the country last year and that they will do the same this year. The post did not cite a source for that statistic.A big part of the playbook here is to convert for-sale single-family stock into rental property. Another part is to limit supply and create pricing power.
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