Hedge funds are a minor contribution to the housing issue. The largests factors behind rising home prices are: Housing supply not keeping up with demand. In many countries (including the U.S., Canada, the UK, and Australia), home construction has lagged population growth and household formation for years. Low interest rates (especially from 2009–2022), which increased buyers’ purchasing power. Population growth and migration into desirable cities. Zoning and land-use restrictions, which limit new construction. Higher construction costs (labor, materials, and regulations).
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