Are Wall Street Investors Pumping Up The Next Housing Bubble?

Areas like Las Vegas, Phoenix, and Miami — all hit pretty hard by the collapse of the last housing bubble — are now seeing home prices rise at rates above the national average. But rather than this being an indicator that these areas are finally recovering, some worry that it’s just a lot of hot air being pumped into another bubble by Wall Street investors.
The Washington Post reports on the huge amounts of money that institutional investors are putting into single-family homes in some areas hit the hardest in recent years. They are rushing in to buy properties at what is hoped to be well below market rate, with the goal of reselling for a tidy profit as the economy recovers.

According to some in the Florida real estate business, these investors now buy 7-in-10 homes on the market there, and may account for the majority of home sales in other distressed areas over the last two years.

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