The troubling trend of buying and selling homes as an investment has some critics worried that it will contribute to an already overheated housing market.

Jerusalem Demsas reports on "a growing fear that housing is becoming less like shelter and more like a risky financial asset traded on Wall Street." A trend dubbed 'iBuying' is being blamed for manipulating the housing market, which already saw major upheavals and a "historic undersupply" during the pandemic, writes Demsas.
Zillow began flipping homes in 2018, hoping its algorithm-based approach would be a profitable way to buy and sell homes. Now, writes Demsas, it has announced that "it would stop buying homes for the rest of the year, self-reportedly due to a 'backlog of renovations and operational capacity constraints' that it blamed on the supply chain issues plaguing the economy."
Demsas writes that while concerns that these companies will drive up home prices might be unfounded, the rise of institutional real estate investors could have an impact on regular buyers and renters.
iBuyer companies make up a very small share of the market — roughly 1 percent of home sales in the second quarter of 2021, at what is their peak so far — but it’s important to take concerns about their growth seriously. While iBuyers contend that they are offering a clear solution to reducing the stress of the home-selling process, US policy has predicated financial security on homeownership, and the introduction of large firms into the space raises fears of potential anti-competitive and predatory behavior.
Planetizen has previously covered the wild ride of the housing market during the pandemic as prices skyrocketed and low- and middle-income households are increasingly pushed out of most major cities.
FULL STORY: Could Zillow buy the neighborhood?

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

San Antonio and Austin are Fusing Into one Massive Megaregion
The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

Since Zion's Shuttles Went Electric “The Smog is Gone”
Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden
Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

German Cities Subsidize Taxis for Women Amid Wave of Violence
Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
planning NEXT
Appalachian Highlands Housing Partners
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie