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The main issue I have with private equity participating in the housing market is that it skews the competitive edge too far into their favor resulting in pure exploitation of the market. Home buyers have a reasonable range of readiness to buy a home when competing against each other. And those at the lower level can learn and improve their lot. But PE is anti-competitive because no family in nearly any housing can rise to the level of inherent strengths of these firms.
It would be interesting to see the percentage of homes closed on by American families when PE is bidding on the same homes. My gut says less than 10% and could very well be staggeringly small.
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Tru6 Restoration & Design
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