Tinfoil hat time.

Here is a theory of mine. We all know the govt lies or tells half truths regarding just about everything in this country.

What if these huge capital funds like Blackrock, Vanguard, and State Street are buying up tens of thousands of houses so the housing market does not collapse? What if those dying and leaving houses are much higher than we are told? If a massive influx of houses hit the market, the market would start to drop to the point that some places could lose a huge percentage of value of their homes.

We know that most Americans are leveraged to the gills through their houses. For instance, if the house was purchased for 500k and now its valued at 1 million, they would have taken out a loan on the equity to either buy vehicles, another car, or a vacation. If the market lower the valuation of those houses, the banks will then take a hit on the loans they backed. Plus, new homes would not need to be built and the construction industry would also take a hit.

Once the housing market goes so does all the other luxury markets such as vehicles, vacations, eating out, paying for college, and so on.

After 2008, we know just how fragile and interconnected the housing market (debt) is to the rest of the economy.