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Presenter: Delia Whitehill

Faculty Sponsor: Zaur Rzakhanov

School: UMass Boston

Research Area: Finance

Session: Poster Session 2, 11:30 AM - 12:15 PM, Auditorium, A52

ABSTRACT

With the rise in institutional investment in real estate markets there has been increased debate over housing affordability and the shift of housing from a good to a financial asset in the United States. Investment increased sharply during the COVID-19 pandemic when the combination of low interest rates and limited housing supply made residential real estate an attractive investment. Home prices rose rapidly during this period, but it remains unclear whether these increases can be attributed to broader macroeconomic conditions or to investor participation. In this study, I investigate the relationship between institutional investor activity and housing market outcomes across metropolitan areas in the United States between 2014 and 2025. The study examines whether metro areas experiencing greater growth in investor activity also experienced faster increases in home prices and rent. It further explores how this relationship changes across different monetary policy environments, comparing periods of expansionary policy followed by monetary tightening. Using a metro-level panel framework, the study focuses on changes within metropolitan areas while accounting for overall housing trends and local economic conditions. I aim to contribute evidence to the policy and economic debates surrounding investor activity within the housing market and its connection to housing affordability and market stability.