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The economic effects of real estate investors

Author

Listed:
  • Carlos Garriga
  • Pedro Gete
  • Athena Tsouderou

Abstract

We show five new results about small‐ and medium‐sized real estate investors (SMREI) who participate through legal entities in US housing markets. First, SMREI have the largest growth across all cities post Great Recession, in contrast to Wall Street Landlords who concentrate in superstar cities. Second, SMREI increase house price growth and price‐to‐income ratio, especially in the bottom price tier. Third, this effect is reversed as investors trigger a medium‐run supply response. Fourth, in areas with a high supply elasticity, SMREI affect rents more than prices. Finally, SMREI change the composition of the housing stock in favor of multifamily units.

Suggested Citation

  • Carlos Garriga & Pedro Gete & Athena Tsouderou, 2023. "The economic effects of real estate investors," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(3), pages 655-685, May.
    • Handle: RePEc:bla:reesec:v:51:y:2023:i:3:p:655-685
    DOI: 10.1111/1540-6229.12427
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    1. Dirma, Mantas & Karmelavičius, Jaunius, 2025. "Micro-assessment of macroprudential borrower-based measures," Journal of Banking & Finance, Elsevier, vol. 176(C).

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