Investors add to demand for housing. This will help drive up prices. And no, builders will not necessarily increase supply if they can realise increased margin of profit due to increased demand. We see that with RAM manufacturers. RAM suppliers constrain supply to boost margins. Same with house builders. The difference is people can go without RAM but everyone needs a place to live.
> Investors add to demand for housing
And here I thought people who want to live in houses add to demand for housing.
Investors buy houses that people want to live in. If people don't want to live someplace, you won't see any investors there either.
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